Wage garnishment in Canada
IF you are not paying your bills, your creditors can sue you for the amount to collect your debts with a wage garnishment. They receive a court order to garnishee your wages. This order directs your employer to make the payments to your creditor from your paycheque.
How do I stop it?
- Your first option is to pay off the debt.
- You may file for bankruptcy.
- You may file a consumer proposal to your creditors.
Usually, the court will only take up to 30% out of the weekly wages, but if their is child or spousal support it can be more.
If the garnishment is a hardship for the debtor, the court can be petitioned to request an adjustment. If it is allowed, then the debtor may be able to pay via an installment plan.
An Employer takes the money from the cheque and pays the court directly. The court then pays the creditors from the money collected.
Employers may NOT discipline the employee due to the garnishment order.
If your wages have been garnished and you need help, reach out to any of the Personal Bankruptcy Trustees in your area for help.
Canadian Wage Garnishment Resources
- The Canadian Bar Association
- E-How Canada Wage Garnishment
- Treasury Board of Canada Secratariat - Guidelines for Processing Garnishments