DAOD 5019-8, Private Debts

Table of Contents

  1. Introduction
  2. General Principles
  3. Procedure
  4. References

1. Introduction

Date of Issue: 2012-10-03

Application: This DAOD is an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF).

Supersession: CFAO 19-4, Failure to Settle Private Debts

Approval Authority: Chief of Military Personnel (CMP)

Enquiries: Director Military Career Policy and Grievances (DMCPG)

2. General Principles


2.1 Queen's Regulations and Orders for the Canadian Forces (QR&O) article 19.07, Private Debts, provides that the private debts of a CAF member are the responsibility of the CAF member.

2.2 A CAF member cannot be ordered to settle private debts.


2.3 A CAF member's failure to settle private debts may reflect upon their good character and adversely affect:

  1. their conduct and performance;
  2. their security clearance suitability; and
  3. the operational and administrative efficiency of the CAF.

2.4 Administrative action may be initiated if a CAF member fails to settle private debts.

Compulsory Payments

2.5 Under Section 2, Compulsory Payments, of QR&O Chapter 207, Pay Allotments and Compulsory Payments, only the Chief of the Defence Staff or the commanding officer (CO) may order a compulsory payment, from the pay and allowances of a CAF member, in respect of a financial support order or judgement debt submitted by an applicant. The terms "applicant", "financial support order" and "judgement debt" are set out in QR&O paragraph 207.02(3), Compulsory Payments – General Provisions.

2.6 The CAF must only facilitate the settlement of a CAF member's private debts in accordance with QR&O Chapter 207 and this DAOD.

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3. Procedure

Procedure Table

3.1 The following table sets out the procedure that a CO must follow when correspondence is received that a CAF member has failed to settle a private debt:

Step Number Step Action
1 Determination

Upon receipt of correspondence relating to the private debt of a CAF member, the CO must determine, in consultation with the local representative of the Judge Advocate General if required, the nature of the debt.

If the correspondence relates to a financial support order, QR&O article 207.03, Financial Support Order, applies.

If the correspondence relates to a judgement debt, QR&O article 207.031, Garnishee Summons – Judgement Debts, applies.

If the correspondence concerns a private debt that is not a financial support order or a judgement debt, QR&O Chapter 207 does not apply.

2 Notification to CAF member

After having determined the nature of the private debt, the CO must provide the CAF member with a copy of all correspondence relating to the private debt, including any correspondence in respect of compulsory payments that may be ordered under QR&O Chapter 207. In addition, the CO must inform the CAF member that:

  • private debts are the responsibility of the CAF member; and
  • failure to settle private debts may:
    • result in administrative action (see DAOD 5019-2, Administrative Review, and DAOD 5019-4, Remedial Measures); and
    • affect their security clearance suitability.
3 Correspondence with an applicant or creditor

After the CAF member has been notified in accordance with step 2, the CO must send DAOD Form 5019-8A, Letter to Creditor, if a compulsory payment under QR&O Chapter 207 has not been ordered.

If a compulsory payment has been ordered under QR&O article 207.03 or 207.031, the applicant must be so informed.

Note – A letter to a creditor or applicant must not contain any personal information about the CAF member.

4 Security review

The CO of the CAF member must, if appropriate:

  • consider, in accordance with paragraph 36.80 of the National Defence Security Instructions (NDSI), any change in personal circumstances of the CAF member;
  • determine if action under paragraph 36.81 of the NDSI is required; and
  • inform the CAF member of any action taken.
5 Financial counselling

The CO must:

  • determine if the CAF member requires financial counselling; and
  • direct the CAF member, if required, to report to the base, wing, unit or Service Income Security Insurance Plan financial counsellor.

Administrative Action

3.2 Administrative action may be taken against a CAF member if the CAF member's failure to settle private debts adversely:

  1. has an impact on CAF operational or administrative efficiency.
  2. affects their conduct or performance; and

CAF Member on Retirement Leave or Released

3.3 A CO must forward to the Director Military Careers Administration (DMCA) correspondence concerning the private debt of a CAF member who is on retirement leave or who has been released.

3.4 The DMCA must determine if the person is still a CAF member and take action in accordance with the following table:

If the person is ... then the DMCA must ...
still a CAF member, handle the complaint in accordance with the Procedure Table in this DAOD.
no longer a CAF member, send a letter to inform the creditor or applicant that the person is no longer a CAF member.

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4. References

Acts, Regulations, Central Agency Policies and Policy DAOD

Other References

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