How to Stop a Wage Garnishment in Ontario

Wage garnishments are a legal process that allows creditors to deduct money directly from your paycheque to recover a debt.

In Ontario, this usually happens after a court judgment is made against you, allowing your employer to legally withhold part of your earnings and send it to your creditors. If you’re seeing unexpected deductions from your pay, there’s a good chance wage garnishment has begun.

Here’s how the process typically works:

• A creditor sues you in small claims or another court for an unpaid debt.
• If the court rules in their favour, a garnishment order is issued.
• The order is served to your employer, who must then deduct a portion of your wages.
• Up to 20% of your net income (or more for family support orders) may be taken from each pay period.

This process can continue until the full debt, including interest and legal costs, is repaid. Unfortunately, you don’t need to give permission for wage garnishment to happen—once a court order is in place, your employer is legally obligated to comply.

The good news? You do have options to stop a wage garnishment and regain control of your income. In the next section, we’ll explain how.

Wage garnishments, there are 3 ways to stop a wage garnishment in Ontario:

• File a Consumer Proposal: A consumer proposal is a legal agreement between you and your creditors to repay a portion of your debt over a period of time. This option will stop the wage garnishment process.

• Declare Bankruptcy: Filing for bankruptcy will also stop the wage garnishment process. The Bankruptcy & Insolvency Act provides an automatic stay of proceedings that protects you from further collection efforts.

• Repay the debt: Repaying the debt stops the garnishment forthwith, unfortunately for most if you had the money you wouldn’t be facing the garnishment in the first place.

• Make a Deal with Your Creditors: Negotiate with your creditors for repayment of your debt. If your creditor agrees to withdraw the garnishment, the process will stop.

Are you experiencing a wage garnishment due to unpaid loans or debts? Our trustees can stop the garnishment before the next payday.

Stopping wage garnishments can be done through a consumer proposal or bankruptcy, both will stop the garnishment. You can also negotiate a repayment plan with your creditor, although most will be reluctant to stop the garnishment without full payment.

Garnishments are a legal process used by creditors to collect money. If you’re seeking assistance in stopping wage garnishments, it’s important to understand the following:

• Wage garnishments are court orders that allow creditors to take up to 50% of your wages.

• Employers are notified of the garnishment and are required to comply with the court order.

• The garnishment will only stop once the loan is paid in full.

In Canada, a wage garnishment is the most common form of garnishment. If you’re been notified of a wage garnishment, the creditor is trying to take a portion of your wages through your employer or your bank, and you need to take immediate action.

It’s important to take action as soon as possible if you’re facing a wage garnishment. At Yanchdey we welcome the opportunity to discuss any garnishment, and the conversation is free.  Contact us at 905-721-7506 and lets have a conversation about how we can help you.

In Ontario, failing to repay debts can lead to your wages being garnished. This occurs when creditors obtain a court judgment.  the judgement is a court order requiring your employer to send a portion of your wages to the creditor.  The garnishment persists until the entire debt is settled.

The following entities are legally empowered to garnish wages in Ontario, listed alphabetically:

• Banks
• Collection agencies
• Credit card companies
• Government agencies
• Payday loan lenders
• Private lenders
• The Canada Revenue Agency (CRA)

Understanding who can garnish your wages is crucial for financial planning and dealing with debts. Give us a call and let’s have a conversation.

Are you experiencing a wage garnishment due to unpaid loans or debts? Our trustees can stop the garnishment before the next payday.

Facing wage garnishment can be overwhelming, but you’re not alone, and we can help.

At YanchDey, we specialize in providing comprehensive support and solutions for those dealing with wage garnishments. Our approach is centered around offering you options and taking care of everything on your behalf.

Wage Garnishments | How to Stop a Garnishment in Ontario

• When creditors demand full payment and won’t lift garnishment orders, the situation can feel daunting. They often expect large upfront payments to stop the garnishment. However, we can negotiate on your behalf, exploring various strategies tailored to your unique financial circumstances.

• It’s important to know that employers are legally bound to follow garnishment orders. Yet, with our intervention, we can facilitate a court order from a trustee to halt the wage withholding.

• If a creditor is threatening legal action against you, it’s crucial not to ignore these warnings. By reaching out to our team of Licensed Insolvency Trustees, you can take a significant step towards resolving these challenges. We offer free consultations to discuss your situation, providing expert advice and actionable solutions.

Remember, making the first call is often the hardest step, but it’s also the most crucial one towards solving your financial problems. At YanchDey, we’re committed to guiding you through every step, ensuring you regain financial control and peace of mind. Don’t hesitate to contact us today – we’re here to help you navigate these challenges and find a path to financial stability.

Paul’s paycheque never seemed to cover all his expenses.

His credit card debt has grown to the point where he’s been unable to pay the bill.

Now after 3 months of not paying, he has received a Garnishment Order notice at work that his pay is going to be garnished.  Where he was receiving $1250 every two weeks, the wage garnishment is going to take $250 dollars each pay until the debt is paid, 20%.

Paul realizes that he has to address his debt, and on advice contacts YanchDey.  The trustee explains to Paul that since he has a good job he can do a consumer proposal, and stop the garnishment.  As well Paul learns that the consumer proposal will drop his debt from $20,000 to 6,000, reducing his monthly payment down to $100 per month.

If a creditor garnishes your bank account, they have a court order to collect a debt from you.

Here’s the essential information:

• Creditors can present this order to your bank: The bank must then send your garnished wages to the creditor until you pay off the entire debt.
• You can’t stop a bank wage garnishment alone: Your options are filing a consumer proposal, declaring bankruptcy, or fully paying the debt.
• A insolvency trustee can help: Reach out to our Licensed Insolvency Trustee for guidance and to act against the garnishment.

We understand the stress and financial strain of wage garnishment. YanchDey provides quick, efficient solutions to halt the garnishment. Call us today at (289)949-0863 to regain control of your finances and end bank wage garnishments.”

If you’re facing a wage garnishment in Ontario, it’s important to understand the laws governing the process. Here’s what you need to know:

• Creditors like banks and credit card companies can typically garnish up to 20% of your net wages.

• If the garnishment is for taxes or family support payments, the percentage can be as high as 50%.

Don’t let wage garnishments take control of your finances. Contact us today to explore your options for stopping garnishments and taking back control of your financial future.

When faced with wage garnishment, these sources of income are protected from creditors. Typically, creditors cannot seize or garnish the following sources of income:

• Canada Pension
• Old Age Security
• Ontario Disability Support Payments, or
• Social Assistance

However, when a court order is in place, the creditor can still take money from your bank account, even if it includes pension income.

In addition, the Canada Revenue Agency and Family Responsibility Office are authorized to seize a portion of income from pensions, disability, or social assistance. It’s crucial to understand your rights and options in these situations.

Stopping Wage Garnishments: Dealing with the Canada Revenue Agency (CRA)

The CRA can garnish wages without needing a court order, but there are effective methods for stopping these wage garnishments. An insolvency trustee can negotiate to rescind the garnishment and reduce the total debt amount.

Stopping Wage Garnishments and Protecting Tax Refunds

When you owe outstanding taxes, the Canada Revenue Agency (CRA) may withhold payments such as tax refunds, child tax credits, Canada Pension Plan benefits, Old Age Security, and HST and tax refunds.

To prevent wage garnishments in these scenarios, it’s crucial to consult with a professional early.

Property owners should be particularly vigilant, as the CRA can register a lien on your property, including your home. This turns the debt into a secured one, which cannot be eliminated through bankruptcy. In such cases, you might need to sell the property or treat the lien like a mortgage, making regular payments.

Contact YanchDey, stopping wage garnishments early can help safeguard your assets and finances.