We have solutions that can stop wage garnishment and get you back on track. Speak to our licensed debt professionals to find out more.
A creditor that hasn’t received their money can turn to wage garnishment as a court-mandated way to directly take funds from your income. When you have ignored payments (or simply been unable to meet them), your creditors can take up to 20 percent of your gross wages to go towards what you owe. Creditors often turn to this avenue if you’ve defaulted on your loans or haven’t made payments on your debts despite substantial reminders.
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Since wage garnishment is a legal proceeding, a creditor must first file a Statement of Claim. You have 21 days to respond to that claim to either dispute the debt or notify the creditor of an error. Without any response, the court assumes you agree to the debt and the creditor gets their Garnishment Order. Some of the ways to stop wage garnishment once it’s in action is to file a consumer proposal or file for Bankruptcy.
If you would like to learn more about the pros and cons of filing for a Consumer Proposal or Bankruptcy, please book an appointment with a licensed Insolvency Trustee at David Sklar & Associates to learn about the process. For many debtors, a Consumer Proposal is the most ideal way to settle their debts without some of the severity of filing for bankruptcy.
Licensed Insolvency Trustees are licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer forms of debt relief like bankruptcy. But they can also help you learn about options you might not have even known you had like a consumer proposal.
There are a few steps that you need to take before your proposal is approved by your creditors. Only a licensed insolvency trustee can officially file the proposal for you, so it’s important to work with someone empathetic and knowledgeable when you are ready to initiate a consumer proposal in Ontario.
The amount of time you have to pay your creditors through your consumer proposal depends on the terms of your agreement, but the process can take up to five years. One of the attractive qualities of a consumer proposal vs bankruptcy is that while bankruptcy affects your credit score for up to seven years after it is completed, a consumer proposal only stays on your credit history for three years after it is completed.
Even if you have five years to pay off your consumer proposal, the promise of having the record wiped from your credit history means you might want to pay off your proposal as fast as possible. Are you thinking about taking out loans while in consumer proposal in order to speed up the process? Consumer proposals do not collect interest in the period that you pay them off, but your loan will.
If you take out a loan to pay off your proposal, you’ll pay more money in the long run. Be smart and conscientious about your repayment strategy. It’s best to be financially responsible than trying to make the problem disappear quickly with long-term consequences.
If you are dealing with Garnished Wages and live in Ontario, we invite you to call us for a free consultation at 1-844-962-9200. At David Sklar & Associates, Licensed Trustees in Bankruptcy, we will be happy to review your financial circumstances and discuss all your options regarding your garnishment and help you get on with your life.
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If your creditor doesn’t receive the money they are owed, they can turn to wage garnishment as a court-mandated way to directly take funds from
