Wage Garnishments | Toronto

A wage garnishment could be a real agony, and sometimes just feel totally unfair. Not only you lose the hard earned cash every pay-check, but also you may lose control of your finances, credit as well as confidentiality. No-one wants their boss and employers to learn about your debts and current financial situation. So the key question is how do you stop wage garnishments? There aren't many options, but first let's discuss in greater detail exactly what a wage garnishment is.

Wage garnishment happens when your lender is by law permitted to obtain payment out of your wages through your employer. It'll mainly happen if your creditor is litigating you and taking you to the court, and they'll generally do that if you owe them a huge enough sum of money to really make it worthwhile. If successful your creditor may well then take the Garnishment Order to your organization, who then has no choice but to respect and abide by the proceedings. It should be also noted that there are actually two occasions where wage garnishment can be accomplished without the need of going through the court. The very first situation occurs when you've given an assignment of wage to a credit union, and lastly if you owe back taxes to the Canada Revenue Agency. These are the just two exceptions. The actual amount of your garnishment can vary based on circumstances and will be decided by the the courtroom.

Stop Wage Garnishments

Now we've discussed what it actually means, let us get down to business. How can we stop wage garnishments? The first port of call should probably be to try and reason with the creditor, and try out your very best to convince them that you will be able to pay them back without the garnishment, but remember that this will probably not succeed. To be honest, they wouldn't have gone to the cost of taking you to the courtroom to start with until you owe them lots of money and have a record of not paying out on time, or they've some other reason to believe you would not honor the repayments.

Settle your Financial Obligation

Apart from the above, there are just three alternative ways you may stop wage garnishments. Number one is to simply settle the debt. Now this is probably not an option for you should you have found yourself in this problem in the first place.

Consumer Proposal

The next method is to file a consumer proposal to creditors, a reasonable alternative should you not want to seek bankruptcy relief. It calls for forming a legal binding agreement between you and your creditor through a consumer proposal administrator. This arrangement will protect you from collection agencies, and can create a partial repayment plan where you promise to pay back an amount of the debt that you owe and the creditors consent to forgive the remaining balance. This can be an attractive option should you wish to stop wage garnishments.

Bankruptcy

The last option available to you is to declare bankruptcy. Like I said previously there are more options to consider if you live in Canada and wish to stop wage garnishments, and bankruptcy must generally be seen as a final option. The dangers and consequences of declaring yourself broke should be seriously discussed, and you need to remember that this is not the only real solution available to you.