If you don't pay your debts, a creditor can go to court and obtain a wage garnishment. This is what people often refer to as having their wages "garnished", although the correct term is a garnishee or garnishment.
In order to garnishee your wages, a creditor must take you to court and sue you, and obtain a Garnishment Order from the court. The only exceptions would be a Credit Union that you have given an assignment of wages, or Canada Customs and Revenue Agency.
If a creditor has gone to the trouble of garnishing your wages, they are not likely to lift the garnishment because you agree to pay — they only garnishee people with a history of not paying, or whom they believe will not pay. There are Three ways to stop wage garnishment
Once a wage garnishment starts, there are three ways to get it to stop:
Repay the debt;
File a Proposal to creditors; or
File for Personal Bankruptcy.
How much can be garnished from my wages?
The amount that can be garnisheed from your wages is generally determined by the court.
If you are threatened with a wage garnishment, or are currently being garnisheed, we recommend that you contact us immediately to determine your options. The longer you wait to deal with the wage garnishment, the more you will lose from each paycheque.
In virtually all cases a Proposal to Creditors or a Personal Bankruptcy will stop a garnishment, so we strongly recommend that if you are being garnisheed, or are threatened with a garnishment, contact us to determine your options.
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