A notice of claim or formal notice initiates the debt RECOVERY PROCESS.
The NOTICE OF CLAIM, sent by mail to the last known address of the client and the jointly and severally liable spouse, tutor, private curator or public curator, states:
- the amount of the debt;
- the reasons why it is due;
- the client's right to ask for a review, except in the case of a claim related to
application of Minister’s discretionary power.
The FORMAL NOTICE interrupts prescription and preserves the Band and/or Tribal Council right to recovery of the debt up to the date of the decision of the Appeal Committee or, if applicable, of the expiry of the time limit for requesting a review or an appeal to the Appeal Committee.
Where a right is realized, the debt must be paid as soon as the right is realized since the proceeds of the realization are at the disposal of the client.
When a debt is not paid, Income Security will issue a recovery CERTIFICATE stating the family names, given names and address of the debtor and the amount of the debt. The certificate is issued when the time limits for requesting a review or appealing a review decision to the Appeal Committee have expired, that is:
- once notification of the decision made has been given, at the termination of the 90-day period for seeking review if no request for review has been made,
or
- once notification of the review decision made has been given, at the termination of the 60-day period for appealing to the Appeal Committee if no appeal application has been made.
or
- at the termination of the 30-day period following a decision of the Appeal Committee affirming the Income Security’s decision in whole or in part.
or
- EXCEPTIONALLY, the certificate may be issued as early as the date of the official notice if it is clearly obvious that the debtor does not intend to repay his or her debt, for example, by trying to squander his or her assets or hide their placement.
The certificate covers all existing debts to that date which are no longer subject to the time limits for requesting a review or an appeal before the Appeal Committee.