Paying off your debt

Debtors’ rights and responsibilities

Debtors obligation: paying the judgment in full
Privilege to apply for judgment repayment in installments
Repayment agreement
Consent to disclose personal information to a third party
Payment due date

Debtors obligation: paying the judgment in full

You were the driver or the registered owner of the uninsured vehicle involved in a motor vehicle accident, in which someone has suffered bodily injuries, and you were deemed at-fault by an Alberta court. Due to the fact that you were uninsured and unable to pay the damages to the injured party, the MVAC program paid the judgment to the plaintiff on your behalf.

After MVAC paid the judgment to the victim(s), MVAR received your file and registered it as a debt owing to the government for official collection action.

According to the Traffic Safety Act (section 102), the judgment is payable in full within fifteen (15) days from the day it is rendered. When MVAR obtains your file, a Judgment Notification Letter is sent to you, notifying you of the amount of judgment you need to satisfy. If you are unable to repay the judgment in full, MVAR allows you fourteen (14) calendar days to apply  for the privilege of repaying the debt in instalments over a fixed period of time, depending on the amount of the judgment as well as your age and ability to pay.

To pay off your judgment in full with a lump sum, contact MVAR.

Privilege to apply for judgment repayment in installments

After the judgment is obtained, MVAR sends you a Judgment Notification Letter, which notifies you of the option to apply for debt repayment in instalments. If you choose to arrange a repayment agreement instead of satisfying the judgment with a lump sum payment, you must apply to MVAR by submitting a Financial Statement of Debtor. We recommend that you send the Financial Statement of Debtor (along with proof of income) by certified mail with return receipt requested.

Based on the information you provide in the Financial Statement of Debtor, MVAR will assess your financial position to propose a repayment plan. MVAR’s goal is to respond to your application within ten (10) business days. The repayment plan will be based on the expectation that the debt be retired over a reasonable period of time, given your age and ability to pay. The agreement (including but not limited to verbal agreement) will specify the repayment period and monthly payment amount.

Repayment Agreement

Once the repayment plan is set, you will receive a Payment Arrangement Letter and will be required to begin making payments (refer to Payment Options).

Your agreement with MVAR will be reviewed on an annual basis and revised according to the changes in your financial situation. This is why you are required to submit an updated Financial Statement of Debtor annually or more frequently depending on your individual circumstances.

Consent to disclose personal information to a third party

To grant another person the authority to access your financial information, complete the Consent for Third Party Information Sharing.

You may want to use this consent form if you are outside of the province and you want MVAR to disclose your financial information to a spouse or another trusted person.

Payment due date

MVAR requires the assigned monthly payment in full each month, by the payment due date. We suggest that you make your monthly payment on or shortly after your date of pay from your employer to ensure that the payment does not default.

If you have not made your monthly payment by the due date each month, your driver’s licence and vehicle registration will be suspended within seven days of the payment due date. Your driving privileges will be suspended until the overdue amount is paid as well as the current month outstanding.

The monthly payment due date is a fixed date in each month that you have negotiated with your assigned Collection Officer. For example, your monthly payment may be required to be received (i.e. to arrive by mail or be processed online) by the 15th day of each month.

The effective date of payment for all payment methods is the date the payment is received, not the date it is sent to MVAR. For example, if you sent a money order on July 13 and it was received by MVAR on July 16, then July 16 will be considered the effective date of payment. If July 15 was the due date, that payment will be considered to be a late payment, even though you sent the money order two days before the due date. To avoid collection action, it is important to select a payment method that ensures payments are received by MVAR on or before the payment due date. Thus, payments to MVAR are best made by pre-authorized withdrawal or online banking (which also allows monthly automatic payments). If you choose one of these methods, your payment can be processed on the same day each month and you will avoid any potential suspension action. Note that if your payment date falls on a weekend or holiday that the bank will not process the payment and send it to MVAR until the next business day.

For late payment penalties, see late payments or non-payment.