A big part of your pay cheque has just been garnisheed to pay the government for back taxes, child support, or your debts. You need to act now, before you lose part of your next pay as well.
The 3 ways to stop a wage garnishment are:
Make a deal with your creditor
File a consumer proposal
File for bankruptcy
Under the Ontario Wages Act, the maximum a creditor can garnishee is 50% of your gross wages (earnings before deductions).
Before your employer receives a garnishee summons you should try to make a deal with your creditor. Stopping the wage garnishment might require a consumer proposal. Personal bankruptcy could also stop a garnishee of your wages depending on who your creditors are.
In virtually all cases a consumer proposal or a personal bankruptcy will stop a wage garnishment. The longer you wait to deal with the wage garnishment, the more you will lose from each paycheque. If you are threatened with a wage garnishment, or are currently being garnisheed, we recommend that you call one of our offices in Ontario or e-mail us immediately to determine your options.
