5 Facts About Wage Garnishment


Category: Personal Bankruptcy (8) comments

Creditors can garnish your wages if you have stopped making payments towards your debt. In most cases they must obtain a wage garnishment order from the court and depending on the province can garnish up to 50% of your wages. If you are facing a a garnishee, read our tip sheet with 5 basic facts you need to know about a wage garnishment in Canada.

If you think bankruptcy can help, contact a bankruptcy trustee or review our other articles about dealing with a garnishment order:

  1. Is bankruptcy the best way to stop a wage garnishment
  2. Can creditors call my employer about my debts?
  3. What to do when CRA freezes your bank account.
  4. Who will know I’ve filed bankruptcy?

stop wage garnishment Canada information

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    1. J. Douglas Hoyes

      Bill: It is more difficult for a creditor to garnishee someone who is self-employed, because technically there is no “employer”. However, if most of your income is from one source, it’s generally not difficult for the creditor to figure out who you “work” for, and get a court order to garnishee your income. It is very easy for CRA to do this if you owe taxes, because they generally know where you are earning your income.

      Reply
  1. Allan L

    I am considering returning to employment with an employer that I left for a better paying job over 2 years ago. At the time I had a garnishment on my wages through that employer. If I am rehired, is the employer obligated to continue with the garnishee or is a new garnishee order required?

    Reply
    1. J. Douglas Hoyes

      Hi Alan. Yes, if the garnishment order is still in effect, and your employer is aware of it, they would likely resume the garnishment once you start working there again. I suggest you talk to the employer and ask them if they still have the paperwork, and whether or not they plan to enforce it.

      Reply
    1. Ted Michalos

      It is not. I am not a lawyer so I can’t give you legal advice, but try a Google search for “wage garnishments New Brunswick” and you’ll find many sites that explain the process. Very breifly, the people you owe money to have the right to apply to the Court for a Judgment and then for the right to garnishee your wages.

      Reply
  2. Nicole

    I have a garnishment with cra and have left that employer. I have started a new job and would like to make arrangements to pay off the remaining balance without the new job getting garnished. How do i do this? Also.. how long will it take before they garnish the new job..so I have time to call them

    Reply
    1. J. Douglas Hoyes

      Hi Nicole. Unless you tell CRA where you are working, it is likely that they won’t find out where you are working until they get a copy of your T4 at the end of the year. To avoid a further garnishment, you have two choices.

      First, you could simply start making payments to CRA. You can set them up as a bill payee through your bank, and send a payment to them every payday if you want, just like you pay any other bill. If they amount you owe them can be paid off over the next few months, that may be the simplest option.

      The second option would be to call CRA and make payment arrangements directly with them (“Hi, I’d like to send you $XXX every month; if I do that, will you agree to not garnish my wages?”) The disadvantage to this strategy is you may have to wait on hold on the phone for an hour to talk to a human being, and there is also the chance that CRA will say “tell us where you work so we can notify your new employer of the garnishment”, so the best strategy will depend on whether or not you can get them paid off before they find out where you are now working.

      Reply

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