How do I prevent or stop creditors from garnisheeing my wages?
Who is vulnerable to wage garnishment?
Who is not vulnerable to wage garnishment?
What is wage garnishment?
If you owe money to your creditors and do not make payments your creditors may take legal action against you. The result of this legal action is something called a judgement. A judgment is a court order that allows your creditors to deduct payments directly from your wages and seize assets.
How do I prevent or stop creditors from garnisheeing my wages?
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:
- Make a consumer proposal
- Filing personal bankruptcy
- Pay creditors in full
Who is vulnerable to wage garnishment?
Anyone that receives employment income and/or owns property.
Who is not vulnerable to wage garnishment?
Anyone that doesn’t receive employment income and doesn’t own property. E.g.: people receiving pension income (disability, CPP, OAS etc.). These people are often referred to as being “creditor proof” or “judgment proof”. Just because creditors may not be able to garnishee your wages does not mean you’re free of creditor harassment, it simply means that your creditors cannot collect money from you by legal means.
