garnishment of wages

the government has put a garnishment on my wages, if i get a consumer proposal will this garnishment stop? also does the government usually accept consumer proposals?

Posted from: Ontario

One Response to “garnishment of wages”

A licensed trustee said...

I’m sorry, but I can’t give you a definitive answer. A consumer proposal will stop a garnishee of your pay, but the government doesn’t always vote in favour of consumer proposals.

If you have a significant tax debt (more than 50% of all the debts you owe) and you haven’t regularly filed your income tax returns then the government is not likely to agree to a consumer proposal.

If you have filed every year as required and the tax debt is less than 50% of your total debts then it is likely they will agree to a consumer proposal, assuming the proposal makes sense in comparison to a bankruptcy.

The practical solution is to call a trustee in your area so they can review your options in detail with you.