Prolonged and delayed debt repayment inaction may precipitate garnishment action. We understand how this poses a challenging scenario for individuals struggling with debt and trying to make ends meet. Sometimes we may have bit off more than we can chew and/or our financial circumstances have changed and our indebtedness compounds. Fortunately, you have several options when it comes to dealing with your debt. Let our team of counsellors and Licensed Insolvency Trustee advise you on how to deal with the financial matters initiating the wage garnishment action.
5 Facts about Wage Garnishment for Debt Help in Edmonton
If you are facing a garnishee, here are 5 facts you need to know about wage garnishment in Alberta:
- How Garnishment Happens – If you fail to pay your debts, creditors can take legal action against you in the form of a wage garnishment. Before garnishing your wages, a creditor must obtain judgement against you in order to initiate a garnishee summons to your bank or employer.
- A Garnishee Summons –If you cannot pay off your debt on the day you are served with a garnishee summons, a creditor will continue to collect a portion of your wages until the entire debt is paid off. The summons will be effective for 60 days against a bank account and up to a year for most other instances. After this time, the garnishee must be renewed. Expect to receive a copy of the garnishee summons within 15 days of the date that it is served. As the judgement was already obtained, the enforcement by garnishee does not require advance notice.
- What Amount can be Garnished – If you are subject to a wage garnishment, understand that only a certain amount of your wages can be withheld. You will be allowed to keep a predetermined sum of money every month to cover your basic expenses. If you have no dependants, the minimum exemption is $800 net per month with a maximum of $2,400 net per month. Creditors can withhold one-half of the minimum and maximum exemption amounts. If your earnings amount to more than $2,400, the entire quantity will be taken. For debtors who currently have one or more dependants, the exemptions increase by $200 per dependant.
- Where the Money Goes – The money is required to be paid directly to the court, never to the creditor. However, there are a few exceptions to this requirement such as if you have provided an assignment of wages to a credit union, or the Canada Revenue Agency which can hold onto your earnings without having to obtain a court order. Child maintenance enforcement can also garnishee without civil court restrictions.
- How to Stop Wage Garnishment – If you are faced with a creditor threatening to garnish your wages, one of the best ways to stop it from happening is to pay back your debts in full. However, this may be unlikely if you have already been sued and the creditor obtained judgment. If you are currently facing this situation contact a Licensed Insolvency Trustee for professional advice. Timing is of the essence.
Find Debt Solutions in Edmonton with Help From A. C. Waring & Associates Inc.
If you are struggling to pay off your debt and are facing the reality of wage garnishment, you need to contact a Licensed Insolvency Trustee in Edmonton to help provide effective solutions to your financial problems.
If you need help dealing with wage garnishment, or other debt issues, schedule a free initial consultation with A. C. Waring & Associates Inc. Call our Edmonton office toll-free at 1-800-463-3328 or 780-424-9944 with your questions and concerns. We serve the Central and Northern Alberta region.