Does a Consumer Proposal stop a Wage Garnishment ?

You have just been told by your payroll department that they have received a garnishment order and they will be taking money from your next paycheque.   You can’t possibly survive if they take some of your pay. What should you do?  Does a consumer proposal stop a wage garnishment?

If the garnishment is for any debt other than child support then a consumer proposal will stop a wage garnishment.  You will need to act quickly to stop the garnishment as soon as possible because once your employer has received the garnishment order they are obligated to enforce it right away.

To file a consumer proposal you must meet with a trustee.  In preparation for your initial meeting with us you will need to get some information together so we can review it with you.  We will need to see a complete list of creditors.  When you file a consumer proposal you must include all of your unsecured debts, you cannot choose to continue to pay any creditor(s). We will also need to see a list of assets that you own and a monthly budget which should show how much money comes into your household each month and what your basic living expenses are.  We rely on your budget to make sure that you can afford the monthly payment that you are offering your creditors when you file your consumer proposal.

At your meeting we will complete an assessment of your situation and explain all options that you may have and how they will affect you.  Once you have signed your consumer proposal and it is filed with the government we will issue a notice to your employer so that they can stop the garnishment immediately. 

If you want to stop a wage garnishment or are interested in filing a consumer proposal contact a Consumer Proposal Administrator today.

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