1. Wage Garnishments

Garnishing wages is one of the remedies that is available in a creditor’s tool box but that power only comes after the Court grants a Garnishment Order.

Generally (and this list is not exhaustive and should not be relied on as legal advice), the following steps will occur: 

• You miss a payment or two;
• The creditor demands that you remedy those missed payments;
• Failing the remedy of the missed payments, the creditor will send a demand letter requesting that you pay the account in full;
• The creditor, or their legal team, will serve a Statement of Claim on you;
• The matter will be heard at court;
• A judgment will be issued against you in favour of the creditor;
• The creditor will summon you to an examination;
• The creditor will then seek a Garnishment Order

2. Options

Your options may include, among other possible solutions:

• Defending this action (speak to your lawyer); paying the debt off;
• Making an informal proposal or payment plan with the creditor;
• Filing a formal proposal under the Bankruptcy and Insolvency Act; or
• Making an assignment in bankruptcy.