October 27th, 2011 by Questions

When can creditor garnish wages? do they inform us first or the employer or bank will? Thinking about filing and receiving daily calls from credit cards companies( not collection agency yet) just want to know if we will be notified.

Thank you

Posted from: Ontario


One Response to “garnishing”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Creditors can garnish wages as soon as you are behind on your payments (i.e. there is a breech of the contract you have entered into). Now to garnish wages, most creditors have to do it through court, and there are very specific rules that must be followed that require you to be given notice, or at least attempts to be made to give you notice. This notice process will typically give 10 days to have the debt paid in full, and will provide you a date on which your file will be heard by court.

Now the creditors do try to resolve this without court first, that is part of the reason for the continued phone calls, but if you are at the point where you are unable to afford to make your payments as they become due and are worried about a garnishee. I would suggest you are best to be pro-active, meet with a local trustee and review with them the standard ways to prevent a garnishee from being implemented (i.e. consumer proposal, bankruptcy etc.).

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