Wage Garnishments

You cannot stop a wage garnishment yourself, except by paying the debt(s) in full.

Stopping wage garnishments can be done by:

Garnishments are a legal process to collect money (for money owed or a court judgement) by a creditor, against a person who owes money.

• wage garnishments are court orders
• creditors can take 50% of your wages
• employers are notified of the garnishment
• garnishments stop when the loan is paid in full

In Canada a garnishment usually means a wage garnishment.  In a wage garnishment, the creditor is trying to take a portion your wages either through your employer or your bank.

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.

Where your being garnished at your bank. The creditor has gone to court and gotten a judge’s order for payment for a garnishment.

The creditor can then take the garnishment order to your bank. The bank is required by law to send the garnished wages to the creditor until the amount owing is paid in full.

You cannot stop a wage garnishment yourself.  The only way to stop a garnishment is through a licensed insolvency trustee by filing a consumer proposal, filing for bankruptcy or paying the debt in full.

Call us today at 905-721-7506 and we’ll stop the garnishment for you.

In Ontario, creditors like banks and credit card companies can usually take 20% of your net wages through a garnishment.

Where the garnishment is for taxes or family support payment the wage garnishment can be up to fifty (50) percent.

Typically a wage garnishment does not allow creditors to seize your:

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

Where you have been sued and there is a court order the creditor receives a judgement order from the court, except for these types of income.

The creditor with a court ordered garnishment, can have the money taken out of your bank account, even if those funds represent pension income.

Canada Revenue Agency or the Family Responsibility Office are allowed to seize a portion of income from pensions, disability, or social assistance.

The Canada Revenue Agency does not have to get a court order for a wage garnishment. Where your looking to stop a wage garnishment, by the government a trustee can have the garnishment rescinded and reduce the total amount you owe.

Taxes owed are usually considered as unsecured credit and are able to be discharged in a bankruptcy with exceptions.

The exceptions are;

• the tax liability is under 200,000 dollars
• the tax liability is more than 75% of your unsecured debt

In bankruptcy where the bankrupt reaches these thresholds to stop a wage garnishment the matter must be brought before a judge.

The judge will decide upon the conditions for the debt before it may be discharged, which may included making some payments.

Where there are taxes owed, a lien can be registered on property held or placed on your home.  Once a lien is registered on property it becomes a secured debt.

When a lien has been placed on your home it means that the lien cannot be discharged through bankruptcy. The bankrupt must either sell the home or make the payments, as if a mortgage has been placed upon the home.

While there is outstanding taxes owing the CRA can withhold payments for:

• tax refunds,
• child tax credits,
• Canada Pension Plan
• Old Age Security
• HST and tax refunds

Where you believe that you have outstanding taxes owing and you own property it is very important that you contact our offices to discuss your situation BEFORE a lien is registered.

Wikipedia defines Garnishment as: a legal process for collecting a monetary judgment on behalf of a plaintiff from a defendant.

Wage Garnishments allow the plaintiff (normally called the “garnishor”) to take the money or property from the person that holds that property (the “garnishee”) or loan.