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I co signed my ex husbands truck loan and he defaulted. The credit union seized and sold the vehicle and are now garnishing my wages for the outstanding amount left owing. Can this be included in my consumer proposal as the vehicle was seized and now becomes unsecured debt? When I file for proposal does the garnishment cease immediately or only after it is accepted. Thank you from a BROKE single mother

Posted from: Ontario

One Response to “garnishment”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Yes, this can be included. As soon as the vehicle is taken back, this shortfall is simply an unsecured debt.

As for the garnishee, this will be removed upon filing the proposal documents. So you should make sure you provide your trustee with contact information for a person in your payroll department and their fax number. AS soon as thins are filed the trustee’s office will send over a request for the garnishee to be removed.