Can a creditor garnish my wages after 7 years?

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In Canada, wage garnishment can occur if a creditor has a valid court order, regardless of how long it has been since the debt arose. Once they have that judgment, there’s no expiration date; the garnishment continues until the debt, including interest and fees, is fully paid. Remember, debts don’t lose validity easily!

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Wage Garnishment Question

Can a creditor garnish my wages after 7 years? I’m wondering if there’s a time limit on how long creditors can pursue wage garnishment in Canada.

From: Anonymous Question
Location: Hamilton, Ontario (ON)
Category: debt management plan

Wage Garnishment Answer

Sure, your wages can be garnished in Canada if a creditor has secured a valid garnishment order, even after seven years. There’s no expiration date on how long they can pursue it once that judgment is in place. The wage garnishment persists until your debt, including any piled-up interest and legal fees, is paid off. Simply put, the clock on debt doesn’t tick down on an existing garnishment order. If you want to understand more about your options, consider debt management solutions.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, while there is no specific time limit on how long a creditor can pursue wage garnishment, the ability to garnish wages is typically linked to the enforcement period of a judgment. Under the Limitations Act, a judgment is enforceable for a period of up to 10 years, and a creditor may apply for garnishment during this time. Therefore, if a creditor has obtained a judgment against you, they can garnish your wages even after 7 years, as long as the judgment has not expired. For the specific regulations regarding garnishment, you can refer to the following documents:

• Canada’s Bankruptcy and Insolvency Act (RSC 1985, c 11; S.C. 1987, c. 29)
• Collection Agencies Act (C.R.C., c. 369)
• Garnishment Regulations (SOR/2007-256)
• Collection Procedures and Practices (C.R.C., c. 368)

It’s advisable to consult legal counsel for personalized advice related to individual circumstances.

From: OSB Helper

Related Questions to Creditors

Here are the top 5 most frequently asked questions related to wage garnishment and debt collection in the context of a 7-year timeframe, formatted in markdown:

1. Can a creditor garnish my wages after 7 years?

No, creditors generally cannot take legal action, including wage garnishment, after the statute of limitations has expired, which varies by province but is typically 2-6 years.

2. Does debt disappear after 7 years?

No, debt does not disappear after 7 years; it only drops off your credit report.

3. How long can a creditor pursue a debt?

Creditors can pursue a debt for as long as they like, but they cannot take legal action after the statute of limitations, which is usually 2-6 years depending on the province.

4. Can a creditor take legal action if I haven’t made a payment in 7 years?

No, creditors cannot take legal action if the statute of limitations has expired, even if you haven’t made a payment in 7 years.

5. What happens to my debt after the statute of limitations expires?

After the statute of limitations expires, creditors cannot take legal action, but you still owe the debt and it may remain on your credit report for a period of time[3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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