Often times when a person has been unable to make payments to one of their creditors, the creditor will look to remedies that will allow them to recovery their claim. One such remedy is garnishment of wages.


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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.

4. Conclusion

Regardless of how you decide to deal with the garnishment and regardless of where you are with the creditor in this process, including having your wages currently garnished, there is help!

Contact a professional at J. Campbell & Associates Ltd. to find out how a proposal or bankruptcy can protect your wages and stop the garnishments!

About the Author

Jason is the founder of J. Campbell & Associates Ltd. When he’s not helping people get out of debt, Jason is spending time with his family or golfing.