Stop a Wage Garnishment without Hiring a Lawyer
A “Wage Garnishment” is when a party obtains the legal authority to order your employer to deduct and forward to him a portion of your wages. Truth be told, thousands of Canadians have their wages garnished each year for a variety of reasons.
Let’s explore some of the most common types of wage garnishments:
Court Ordered Wage Garnishments. This is when a creditor or another party files a Claim either in Small Claims Court (small amounts of money) or Superior Court (larger amounts of money). Upon obtaining a judgement in their favour, they can then proceed to collect their money through the court ordered wage garnishment.
Canada Revenue Agency Wage Garnishments. If you have a tax debt, the Canada Revenue Agency can impose a garnishment on your wages of up to 50% of your earnings and up to 100% of any secondary income. The Canadian Income Tax Act enables the Canada Revenue Agency to garnish your wages without obtaining a court ordered judgement against you. This type of garnishment is often swift and will occur with little warning.
Family Responsibility Garnishments. Wage garnishments that result from unpaid family responsibility can involve a garnishment of up to 50% of your wages and can only be removed by Court Order; not even bankruptcy can stop a wage garnishment resulting from unpaid child support.
If you fall into the first two groups, the first thing you have to determine is, do you in fact owe the money? If the answer is yes, then what you have is a financial problem. At this point it would be against your best interests to spend thousands of dollars on lawyers to stop a wage garnishment.
If you have unpaid debt that was caused by a financial problem, a wage garnishment will only intensify this issue and it could make it impossible to pay your basic living expenses. There is good news: you have choices that don’t involve expensive lawyers and bankruptcy trustees.
The Federal Government has programs in place to help individuals that are suffering due to financial hardship. The fastest way to stop a wage garnishment is to take advantage of one of these programs. A problem as significant and severe as a garnishment is cause for concern. The problem is, a lawyer will sell you legal services, a trustee will sell you bankruptcy services, and a bank will be offer you credit products. What you really need is sound financial advice, from an unbiased professional.
the end of the day, there is great value in retaining a financial consultant. One who can educate you about the available Government Programs and other options that are put in place to stop the garnishment of your wages. A professional financial consultant who will guide you through every step of the way. A financial expert, hired by you, to protect your best interests. If your wages are being garnished, stop being garnished now!
Michael Goldenberg, President of DebtCare Canada
Michael Goldenberg is the founder and President of DebtCare Canada Inc. With an extensive background in business management, Michael spent 20 years operating a commodity trading firm. During that time he served as a financial mentor, providing counselling to many individuals struggling with debt. This prompted the inception of DebtCare Canada, whose mission is to inform the public about federal government programs that are designed to assist individuals, families and businesses to solve their debt problems. Michael brings his experience, passion and full commitment to each client he serves. Contact Michael at: [email protected]