Garnishee Order- How Do I Stop Wage Garnishment In Ontario?Posted on: August 14, 2014
A creditor or collection agency has placed a Garnishee Order against you, and you are wondering “how do I stop wage garnishment in Ontario?” Wage garnishments can cause a devastating blow in your life and pack a double whammy. Not only do you lose control of your finances, but you also have the embarrassment of your employer knowing that you are suffering money troubles. So how do you keep your salary in your hands?
Wage Garnishment Ontario: Who can garnish your wages in Canada?
Wage garnishment is a legal proceeding set in motion by creditors, including collection agencies, credit card companies, payday loan lenders, and the Canada Revenue Agency. Fortunately, except for the government agency, which can garnishee your wages without a court order, the creditors must take you to court and sue you to obtain a garnishee order.
What is a Garnishee Order?
This refers to a person or entity such as your employer, customer, or bank. They are ordered by the court to seize your wages or payment and surrender it to settle a claim or debt.
How much can the government garnish your wages in Canada?
Once they have the right to do it, a garnishee can take from 20% up to 30% of your gross wages. If you are self-employed, they might seize all of your receivables. If you are a contract worker, they can garnish up to 100% of your income.
However, there is a limit on how much a creditor can take from your income or bank account. The government may propose exemptions and additional protection to safeguard your earnings and bank balance for certain situations. An example of this is if you are the head of the household and have dependent children.
Can wage garnishment be stopped?
To stop this cold, or prevent it from happening in the first place, it is best to act quickly. The first step to take is to talk to a licensed insolvency trustee. A trustee can explain it all to you and make it happen. You will be happy to know that you have more than one option to stop it, not just bankruptcy.
How to stop a court-ordered wage garnishment?
One option is to negotiate a consumer proposal for you with your creditors. Even just making the official offer will stop all other legal actions related to your debts, including wage garnishment, immediately. Then, if they accept your proposal offer, it would consolidate all your previous monthly payments into just one – to the trustee – for one monthly payment that you can afford. On the other hand, if necessary, you can file bankruptcy that will stop all wage garnishments, whether the creditor likes it or not. There is one exception to this. A garnishee for child support will not be stopped.
Being garnisheed is, at the very least, an unpleasant experience. For most people, it makes it very hard or even impossible to live a normal life. It will come as no surprise when I say that a garnishee or threat of a garnishee is one of the main reasons people come to see us. They just have to do something to stop it and thank goodness Richard Killen & Associates can do that.
If you need to stop wage garnishment and bank account freeze as well as avoid payday devastation, you can talk to a licensed insolvency trustee for a free consultation and get the results you need. Remember, it may be the most stress-relieving call you ever make.
To sum up and answer the question “how do I stop wage garnishment in Ontario or stop a garnishee order?”, talk to a licensed insolvency trustee at 1 (888) 545-5365 for a free consultation.
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