Unable to pay the overpayment of the payroll.

[Antu59]

Hi, I left my job and, Canada as my PGWP expired in January. However, my employer sent me an email yesterday to repay the payroll overpayment they paid me on the 23rd of February. I didn't touch the money at first, but after waiting for a couple of weeks, I spent it all (935.17 dollars) as I was not getting any response from them. They are asking me to pay them the money back. Currently, I am in a dire situation as I don't have a single Canadian penny in my bank account. They have mentioned in the email that failure to pay the overpaid amount may result in legal action to recover the funds. I know it would affect my credit score in the long run but I have a few other questions:

1. Will this be an issue for me to get a Canadian PR if they go for legal court action?

2. What could they do to recover the funds from me? I have no cash in my bank account, however I have some stocks in a brokerage. Can they seize my stocks or equivalent cash by selling my stocks?

3. Will this legal action affect my future US student visa application?

Kindly educate me on what to do right now. Any suggestions would be greatly appreciated.

 

[Kaibigan]

Hi, I left my job and, Canada as my PGWP expired in January. However, my employer sent me an email yesterday to repay the payroll overpayment they paid me on the 23rd of February. I didn't touch the money at first, but after waiting for a couple of weeks, I spent it all (935.17 dollars) as I was not getting any response from them. ...

So, you realized there had been an overpayment when you left your job and you contacted the employer advising you had been overpaid by $935? Is that correct? And you also asked how it should be repaid. Is that correct? But the employer ignored your communications until payroll sent an email 2 days ago, asking for the money, is that correct? If all of that is correct, then I must say that the employer acted in a most peculiar manner, but that did not give you the right to spend the money, which you recognized was not yours.

...
1. Will this be an issue for me to get a Canadian PR if they go for legal court action?

2. What could they do to recover the funds from me? I have no cash in my bank account, however I have some stocks in a brokerage. Can they seize my stocks or equivalent cash by selling my stocks?

3. Will this legal action affect my future US student visa application?...

A civil debt action will not affect getting PR or US student visa, although it should in my view.

The steps the employer can take to collect depend, in part, on the province in which all of this occurred. They can get judgment and seize other assets and, generally, a judgment is good for 10 years, during which they have that time to look at other ideas, such as garnishment of wages if you work in Canada in that 10 years. Depending on province, the judgment may be able to be renewed for 10 years.

But, call me crazy if you like, it occurs to me that one solution would be to simply pay the debt. I know it's not the fashion these days to fulfill one's just obligations. Better to duck and weave and stiff others. That is seen as more honourable and a trait to be cultivated in new Canadians. But, some of us old school types regard those who pay their debts as stand-up guys. That's not an insult in some circles.

Maybe you do not have $935 to hand. Contact the employer, apologize, mention your straitened circumstances and offer to repay at, say, $100 a month. The employer is not likely anxious to commence legal proceedings over $935 and would appreciate some fair response instead of running away.

 

[Antu59]

I didn't contact them. Yesterday I got the email about the repayment of the overpaid payroll. What do you mean by assets? I still have some stocks worth a few thousand in a broker account. Can they seize that? Could you please explain what you mean by 10 years of judgment? Will the court give me 10 years to give the money back? I left Canada a couple of months back and I have no right to go back to Canada for now. This was my last job, I left Canada 2 weeks after the PGWP expiration.

 

[Kaibigan]

I didn't contact them. Yesterday I got the email about the repayment of the overpaid payroll. What do you mean by assets? I still have some stocks worth a few thousand in a broker account. Can they seize that? Could you please explain what you mean by 10 years of judgment? Will the court give me 10 years to give the money back? I left Canada a couple of months back and I have no right to go back to Canada for now. This was my last job, I left Canada 2 weeks after the PGWP expiration.

If you did not contact the employer, why the comment about "no response" from the employer? It sounds like you made contact, and you were ignored. Instead, it now seems that it took the employer awhile to realize the fact of the overpayment and to ask to you return it.

"Assets" include anything of value you own. Cash in the bank, stocks, bonds, mutual funds, accounts receivable, chattels such as a motor vehicle, personal and real property of every description.

As for "10 years", I refer to the fact that, in general (again, I do not know your province), once a creditor obtains a judgment, it may be enforced for 10 years. The judgment creditor has that long to see if it can find a way to collect. The judgment can be renewed after 10 years, ut made not in all provinces. It does not mean a court will give you 10 years to pay.

At bottom, what I am suggesting is that this is a legitimate debt. You do not appear to clam that the employer is making a false claim. So why not make some effort to do the right thing and pay? I see that as a better way forward than to come here and ask how to escape payment with no consequences. Your initial post allows one to draw that inference.