April 19th, 2012 by Questions
If I choose not to go bankrupt, can a creditor (collection agency) garnishee a part of my Canada Pension Disability Benefits?
Posted from: Prince Edward Island
April 19, 2012 at 5:49 am, A licensed trustee said:
With the exception of the Canada Revenue Agency (CRA), no one may garnishee or reduce your CPP Disability – it is protected under the law. If you owe the government money, they may clawback a portion of your CPP to recover the debt. They usually limit the clawback to 10%, but they can go higher if they feel it is warranted. You have the right to file for bankruptcy or a proposal to stop the clawback.
If you find yourself in this position you should speak to a trustee BEFORE you make any decisions.
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