Wage Garnishment is an automatic deduction from your paycheck that goes towards repaying a debt that is legitimate. Creditors get a judgment which the debt is legitimate and must go to court and they are eligible to collect it. The wage garnishment is just one way they have to collect the judgment. The big methods are currently minding your bank account or putting a lien against your property. You requireif you have got CRA debt that is outstanding to know that they have the right to garnish your wages. For the CRA wage garnishment is an administrative procedure. Unfortunately, your employer will be advised and be forced to comply if among your creditors will get the right to garnish your wages with However, the courts prohibit them from taking any retaliatory or disciplinary action.The Cash deducted goes to the lender, not to the courts. Canadian law does not allow more than 25% of what you make to be garnished although there are several exceptions for alimony and child support. In practice, the courts determine the amount of the garnishment. The debtor has the right to petition the courts if this amount would result in financial hardship.
For most Canadians there are only 3 ways:
- Pay the Money
- File a Consumer Proposal
- Declare Personal Bankruptcy
Secondly, you can work with a Certified Bankruptcy Trustee and file a consumer proposal. This is a procedure although the wage garnishment you have wills not halt but avoid any collection activity. To the trustee that is used to refund a lesser amount of the debt that the debtor makes a payment having a proposition.Third, after Working with a certified Bankruptcy Trustee it is possible to declare bankruptcy. Bankruptcy and both proposals must include all of your debts, not only the debt for that your wages are being garnished.
For Residents of Alberta, Saskatchewan, Prince Edward Island and Nova Scotia there is a fourth option, accessible through a not for profit Credit Counseling Center. It is known as an Orderly Payment of Debts at which the counselor petitions the court for a consolidation order that will allows debtors to repay all they owe by making monthly payments to the counselor over a 4 year period. A como pedir aumento de salario garnishment in effect at the time will go away and the debtor is protected from any collection activity so long as the payments continue to be made.If you are being threatened and you want specific answers to the questions of what can speak to a Licensed Bankruptcy Trustee and what exactly is a wage garnishment.