Stopping a Wage Garnishment

It can be embarrassing to hear from your employer that your wages have been garnisheed. Nobody wants their employer to know their personal business, especially if you are having financial problems. A wage garnishment could also have a devastating effect on your current household budget, making it more difficult to make ends meet.

A garnishment order means that one of your creditors has taken legal action to recoup the money you owe them. A court will have decided your wages could be garnished and the amount of the deduction. In Ontario, the maximum that can be taken is 50%, which can have a significant impact on your monthly finances. Upon receipt of the order, your employer must deduct directly from your pay cheque a percentage of what you owe until the debt is paid in full.

Some creditors do not need to obtain a court order. If you owe personal income taxes or GST/HST to the Canada Revenue Agency or have given a credit union a wage assignment, these creditors can garnish your wages without going to court first.

There are three ways to stop a garnishment: pay the debt, file a consumer proposal or file an assignment in bankruptcy. Whether you are being threatened with garnishment by a collection agency or there is already a court order in place, a Trustee in bankruptcy will review your situation and provide solutions.

Call for a free initial consultation today.


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