How do I stop a wage garnishee in Ontario?

Wages can be garnisheed when a creditor has successfully filed a claim against you in the Superior Court of Justice and obtained Judgment against you. There are certain creditors such as Canada Revenue Agency that have the power to garnishee income by legislation.

Negotiating a payment arrangement before the collection process gets to this point is certainly the best way to avoid a garnishee.

However, if your wages are currently being garnisheed there are typically three ways to stop this action:

The day a bankruptcy is filed a “Stay of Proceedings” becomes effective by legislation which stops the garnishee. In the case of a Consumer Proposal the “Stay” is in effect until the creditors have voted for or against the proposal. In the event the Consumer Proposal is approved the “Stay” remains in effect. If the creditors vote against the proposal the “Stay” is no longer effective and the creditors may pursue the debtor once again.

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