What to Do If Your Salary Is Being Garnished
Having your salary garnished can feel overwhelming, but it’s important to remember that you’re not out of options. Whether it’s due to unpaid debts or overdue bills, garnishment doesn’t have to be the end of the road. Understanding your rights and the solutions available, like a consumer proposal or bankruptcy, can help you stop garnishment and regain control of your finances.
What Does It Mean to Have Your Salary Garnished?
When your salary is garnished, it means a portion of your income is being withheld by your employer to pay off a debt. This legal action often occurs after a creditor takes you to court and obtains a garnishment order. For many, this sudden loss of income creates significant financial stress, making it difficult to cover basic living expenses.
If your salary is being garnished, it’s crucial to act quickly. There are ways to stop the garnishment and protect your hard-earned income.
How to Stop Your Salary from Being Garnished
Two of the most effective ways to stop wage garnishment in Canada are filing a consumer proposal or declaring bankruptcy. Both of these debt solutions provide an automatic stay of proceedings, which legally prevents creditors from continuing garnishment or other collection actions.
Stop Salary Garnishment with a Consumer Proposal
A consumer proposal is a legal agreement between you and your creditors to settle your debts for a fraction of what you owe. When you file a consumer proposal, the stay of proceedings kicks in immediately, stopping wage garnishment and giving you room to breathe financially.
Stop Salary Garnishment with Bankruptcy
Filing for bankruptcy also triggers a stay of proceedings, which halts wage garnishment, collection calls, and lawsuits. While bankruptcy may sound intimidating, it’s a powerful option for those whose debt has become unmanageable.
Only a Licensed Insolvency Trustee Can Help
If your salary is being garnished, you’ll need the help of a Licensed Insolvency Trustee (LIT) to file a consumer proposal or bankruptcy. LITs are government-regulated professionals who specialize in debt relief solutions and are the only ones authorized to initiate a stay of proceedings.
Here’s how an LIT can help:
- Analyze your financial situation.
- Explain your options, including how to stop your salary from being garnished.
- File the necessary paperwork to ensure garnishment stops immediately.
Don’t Wait—Take Action Today
Having your salary garnished can make it feel like you’re trapped, but relief is closer than you think. Filing a consumer proposal or bankruptcy not only stops garnishment but also sets you on the path to financial recovery.
Contact a Licensed Insolvency Trustee today for a free debt consultation. With their guidance, you can stop your salary from being garnished and take the first step toward a brighter financial future.
