Comments on: garnishment of wages http://www.bankruptcy-canada.ca/consumer-proposals/2010/01/garnishment-of-wages-3.html Personal Bankruptcy Canada Blog Fri, 10 Feb 2012 15:23:44 +0000 hourly 1 By: Ted Michalos, CA trustee http://www.bankruptcy-canada.ca/consumer-proposals/2010/01/garnishment-of-wages-3.html#comment-113496 Ted Michalos, CA trustee Fri, 29 Jan 2010 13:14:17 +0000 http://www.bankruptcy-canada.ca/consumer-proposals/2010/01/garnishment-of-wages-3.html#comment-113496 I'm sorry, but I can't give you a definitive answer. A consumer proposal will stop a garnishee of your pay, but the government doesn't always vote in favour of consumer proposals. If you have a significant tax debt (more than 50% of all the debts you owe) and you haven't regularly filed your income tax returns then the government is not likely to agree to a consumer proposal. If you have filed every year as required and the tax debt is less than 50% of your total debts then it is likely they will agree to a consumer proposal, assuming the proposal makes sense in comparison to a bankruptcy. The practical solution is to call a trustee in your area so they can review your options in detail with you. I’m sorry, but I can’t give you a definitive answer. A consumer proposal will stop a garnishee of your pay, but the government doesn’t always vote in favour of consumer proposals.

If you have a significant tax debt (more than 50% of all the debts you owe) and you haven’t regularly filed your income tax returns then the government is not likely to agree to a consumer proposal.

If you have filed every year as required and the tax debt is less than 50% of your total debts then it is likely they will agree to a consumer proposal, assuming the proposal makes sense in comparison to a bankruptcy.

The practical solution is to call a trustee in your area so they can review your options in detail with you.

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