How to Stop Wage Garnishment in Canada
November 25th, 2020 by Bankruptcy Canada
Wage garnishment can be devastating. You’re already paying overwhelming debts and then suddenly your paycheck is smaller and you’ve got to cope with less money and mounting bills.
So how can you stop wage garnishment in Canada?
There are a number of resources available to you if your wages are being garnished and several ways to put a stop to the garnishee in Canada.
The first thing you can do in Canada to stop wage garnishments is to negotiate with your creditor. Your creditor wants to be paid back, and even though they may seem like the big mean bad guy, they may be willing to bend to get you to be able to pay your debts. In particular, proposing a payment plan that allows for eventual full payment of your debt may be sufficient to motivate your creditor to terminate the garnishee. Maybe they won’t bend as much as you’d like (or need) but a voluntary repayment plan with your creditor is the first option for wage garnishment.
The second option is to apply to Court and request a reduction in the garnishee due to financial hardship. This method can be effective, but it is also slow and can be costly, especially if you have to hire a lawyer. Lastly, there is no guarantee that this method will result in a reduction of the wage garnishee in Canada as the Court may decide that the creditor wage garnishee is appropriate under the circumstances.
In extreme circumstances, you can quit your job. The wage garnishment will cease until such time as you have new employment and your creditor has gone through the process once again to garnish your wages from your new employer. This method is not ideal, as it could affect your capacity to support yourself and your family long-term. This is especially the case if you leave a quality, high-paying position to avoid wage garnishment in Canada.
Being in Canada, one option is to move to New Brunswick, where wage garnishments are not permitted by law. Likewise, leaving Canada and working as an ex-pat in a foreign country will put up another barrier to wage garnishments. However, moving to another province or country may not be a practical option for everyone to avoid wage garnishment in Canada. In addition, relocating, especially on a temporary basis, will not address the underlying debt problem that resulted in the wage garnishment.
The best option, however, is to contact a reputable Licensed Insolvency Trustee to discuss the legislative options available to you to stop wage garnishment in Canada. The solutions available through a Licensed Insolvency Trustee are legal alternatives that will allow you to work your way out of debt with many of your consumer debts and unsecured debts being relieved. Most importantly, the legal alternatives available through a Licensed Insolvency Trustee provide for a stay of proceedings which will immediately put a stop to most wage garnishments in Canada and restore your paycheque.