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Credit Union wage assignments

When I file a Consumer proposal and there is a wage assigment from my Credit Union, can the Credit Union have my employer submit 20% of my net pay to recover the debt? This is in Ontario.
Can the Credit Union sieze and sell the security AND file the wage assignment with my employer?
Would the same senerios make a difference if I filed a Bankruptcy?

One Response to “Credit Union wage assignments”

A licensed trustee said...

Credit Union’s are unique in that in most cases when you borrow from them they have you sign an “assignment of wages” which allows the credit union to deduct payments directly from your pay.

If you file an consumer proposal or an assignment in bankruptcy the assignment of wages will be stopped – usually this is done by your trustee sending a notice to your credit union requiring them to stop taking deductions from your pay.

If you pledged something to the credit union as collateral (security) for your loan and you stop making the required payments then the credit union has the right to seize and sell the item(s) you pledged as security.