What is a Garnishment & How did I Get One?
Wage garnishment is when money is deducted from an employee’s monetary compensation (including salary), usually as a result of a court order.

If you stop paying a creditor and the creditor decides to take legal action, a creditor can garnish wages to collect a debt in Ontario and most of Canada. A wage garnishment is a very common method that can be employed by anyone who is lawfully owed money. To take action, a creditor must get a Garnishment Order from the Court to present to your employer or financial institution to make payments out of your income or bank account.

How Much Will Get Garnisheed?
It is up to the judgement of the Court to decide if and how much of your wages or bank account will be garnisheed. In the case that a Requirement to Pay has been issued by the CRA, often 30% of income is garnisheed. However, in some extreme situations, 100% of income has been taken.

How Do I Get Rid of a Garnishment?
A garnishment is a legal proceeding that only can be stopped by paying the debt or by filling a Consumer Proposal or Personal Bankruptcy. Filing for personal bankruptcy or filling a consumer proposal will legally protect you from the Garnishment Order and it must be removed from your wage or bank account. Once you have filed for personal bankruptcy or a consumer proposal, your employer or financial institution will be notified and the garnishment must stop.

Will Filing for Insolvency Protect Me From All Garnishments?
While most garnishments are protected by the stay of proceedings after filling for insolvency, garnishments for child support and spousal support are not.

What Can I Do?
If you have been threatened with a garnishment order or your wages or bank account have been garnisheed, contact our office immediately to schedule a free, no-obligation initial consultation. We will review your situation and come up with the best solution for you.

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