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.
In order for your creditors to actually garnish your wages, creditors must do the following:
Go to court. Taking debtors to court is always the last resort as it is costly and time-consuming.
Get a judgment order. This order validates that the debt is yours and that you are obligated to pay.
Return to court. This is when they get an enforcement order for the garnishment or other means of collection.
Investigate. Creditors also hire companies to investigate public documents regarding property ownership and income. If they have reason to believe you have sufficient income or assets, they will come after you.
So what can you do?
Filing a Debt Management Plan with a credit counsellor does not stop wage garnishment. However, the following actions stop wage garnishment even if the process has already begun:
Making a consumer proposal
Filing personal bankruptcy
Paying creditors in full
If your wages are being garnished, call our office today. We can discuss your options with you and help you get your wages back.
