April 14th, 2011 by Questions
When the government of canada garnishes your wages does it affect your credit rating?
Posted from: Alberta
April 14, 2011 at 8:34 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Not directly as the government doesn’t report to the credit bureau. But indirectly it will impact your ability to obtain credit. As soon as an institution gets wind that you are behind with the government they will become exceptionally cautious about lending as the government has significantly more collection abilities than anyone else, so they are worried that this government debt will actually expose them to an increased level of risk.
As a result you may want to contact a local trustee and discuss the various ways of dealing with a government garnishee (i.e. bankruptcy or a consumer proposal.
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