A consumer proposal when you are being garnished gives you the fastest legal way to stop a wage garnishment and protect your paycheque.
Most people feel panicked when their employer starts withholding part of their income, but the law gives you a powerful tool: once the proposal is filed, the garnishment must stop.
Creditors are legally required to lift the garnishment, stop collection activity, and back away immediately.
A wage garnishment feels impossible to escape, but it can be shut down quickly using the legal stay of proceedings.
The moment your consumer proposal is filed, the stay goes into effect and all creditors — including banks, lenders, and even the CRA — must stop seizing your income.
This isn’t optional. It’s federal law, and it applies the second your trustee submits the proposal.
Most people want to know how long it takes before their employer stops taking money off their pay. In many cases, the change happens within a few days.
Your trustee sends your employer official notice, and once payroll receives it, the deduction must end right away. Whether it’s a bank lawsuit, a credit card judgment, or a CRA garnishment, the process works the same: the seizure ends immediately.
For many clients, the very next pay period is already protected. That speed alone is why a consumer proposal when you are being garnished is the preferred solution.
Creditors pursue garnishments because it’s one of the most effective ways to force repayment.
But once a proposal is filed, the rules change. Your creditors are no longer allowed to contact you, collect from you, or continue any enforcement action. They must pause their lawsuit, stop interest, and wait for the proposal vote.
Whether you owe $5,000 or $50,000, the protection applies equally.
Ending the garnishment is only the first part of the process.
The second part is even more helpful: your debt is reduced. A proposal typically cuts unsecured debt to about 30% of what you owe, and all interest stops immediately.
This replaces the unpredictable loss of 20% of your paycheque with one predictable monthly payment that fits your budget.For most people, it’s the first time in years they feel in control.
Many people dealing with garnishments also face frozen bank accounts or sudden withdrawals. Filing a proposal forces creditors to release bank holds and prevents new seizures. This protects:
A consumer proposal when you are being garnished removes the uncertainty and financial stress immediately.
A proposal is the right choice if:
• the garnishment is making it impossible to keep up with bills,
• you need all interest to stop now,
• you want to avoid bankruptcy,
• or you simply cannot afford to lose another paycheque.
The longer a garnishment continues, the harder it becomes to recover. Acting quickly gives you the greatest financial benefit.
This consumer proposal calculator shows an approximate of how much you could save.
If you’re feeling overwhelmed by debt and not sure where to start, the best thing you can do is talk to someone who understands.
Call now and speak directly with me — Kelly Dey — for clear, honest advice that’s tailored to your situation. There’s no pressure and no judgment. We’ll look at your options together and create a plan that helps you breathe again. Getting started is easier than you think, and one simple conversation can put you back in control of your money and your life.
Let’s take that first step today, call 905-721-7506.
A. Very fast. Once your consumer proposal is filed, your employer receives a legal notice requiring them to end the garnishment immediately.
Most clients see the deduction gone by their next paycheque. In some cases, it stops even sooner depending on payroll timing. Creditors cannot take another penny once the notice is issued.
A. Yes. CRA garnishments are powerful, but they are still legally required to stop once your proposal is filed.
This includes wage garnishments, frozen bank accounts, refund holds, and any other enforcement action. The stay of proceedings applies equally to CRA and private creditors.
A. That’s exactly when a proposal is most effective.
It not only stops the garnishment but also reduces your total unsecured debt—often to about 30%—and replaces it with one affordable payment. This gives you the room you need to catch up on rent, groceries, and household essentials.
A. No. Your trustee handles all communication.
Employers receive only the official legal notice instructing them to stop the deduction. They are not given details of your personal financial situation, only instructions to end the seizure.
A. Absolutely. Court judgments do not stop you from filing.
Once the proposal is filed, the judgment is frozen and creditors cannot continue enforcement. This prevents future garnishments, bank levies, or further legal action.
Insolvency Trustee – Kelly Dey
If you’re feeling weighed down by money or debt issues, give me a call at 905-721-7506 and lets just have conversation.
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Evan J.
3 days ago
★★★★★ The garnishment was drowning me. They filed the proposal and the deduction stopped before my next paycheque. Total relief.
Michelle R.
1 week ago
★★★★★ I didn’t know how I was going to survive losing 20% of my pay. The proposal froze everything and cut my debt down to something manageable.
Lucas G.
2 weeks ago
★★★★★ My bank froze my account after a judgment. The proposal reversed it and protected my income instantly.
Rita V.
3 weeks ago
★★★★★ Once payroll got the notice, the garnishment stopped. I finally had my full paycheque back.
Tom K.
1 month ago
★★★★★ I was desperate. They explained everything clearly and acted fast. The proposal saved me from sinking.
Rise Above Your Debt!
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