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How does the garnishment of wages work?

My husband is considering filing bankruptcy however we are still unclear about the garnishing of wages. Strangely, our trustee did not advise us that this was a factor in claiming bankruptcy and I learned about it through this website. My husband has a fluctuating income since he does seasonal work normally and the income depends on the contract therefore he can have a “surplus of income“ from month to month. Our goal would be to save that money to help him reastablish his credit however I wonder if it would have to be surrendered if considered a surplus? Our trustee lead us to believe (and this is a licensed trustee) that we would have to pay a fee to him (less than $2000) over the span of 9 months prior to discharge. Can you please clarify?

Posted from: Quebec

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One Response to “How does the garnishment of wages work?”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

Wage garnishment and surplus income are two different things. Wage garnishment is something that is typically done through court to collect outstanding debts.

Surplus income is something that pertains to a bankruptcy. When you file bankruptcy there is a minimum cost that is set by the trustee. Then each trustee is sent by the Superintendent of Bankruptcy a guideline that determines whether or not you qualify for that minimum cost. If you make more than the guidline your bankruptcy will cost you more.

This is an important component of a bankruptcy to understand so I suggest you ask either the trustee you spoke with or another local trustee to determine if surplus would be an issue in your case.