Can credit counseling stop wage garnishment?
credit counseling stop wage garnishment, if credit counseling can stop wage garnishment, Ontario
Credit counseling might not stop wage garnishment in Canada, but it can guide debt management. For stronger action against garnishments, filing a consumer proposal or declaring bankruptcy offers legal protection through an automatic stay, shielding your paycheck. Consider consulting a Licensed Insolvency Trustee, but be cautious as not all trustees are trustworthy. Reach out via phone, text, or live chat with any questions.
Credit counseling can’t stop wage garnishment—explore alternatives.
Credit Counseling Stop Wage Garnishment Question
Can credit counseling stop wage garnishment?
My wages are being garnished, and I’d like to know if credit counselling could help stop this or offer a solution.
From: Anonymous Question
Location: Ottawa, Ontario (ON)
Category: consumer proposal
Credit Counseling Stop Wage Garnishment Answer
Credit counseling can’t stop your wages from being garnished in Canada. These helpful folks can guide you with debt management and negotiate some repayment plans, but when it comes to having the legal muscle to block actions from courts, they’re not the ones. Once those garnishments kick off, the big guns like filing a consumer proposal or declaring bankruptcy are the go-to solutions. These give your paycheck a breather with an automatic stay on proceedings, meaning your income is protected as you sort your finances.
If you’re dealing with wage garnishment, it’s wise to look into a consumer proposal or bankruptcy. They both let you tackle debt restructuring and keep creditors at bay, a step beyond what credit counseling agencies offer with their emphasis on budgeting and voluntary payback plans. Need a seasoned guide? Chatting with a Licensed Insolvency Trustee can light up your path forward. Just keep your wits about you since not all trustees might be on the level. Got questions? Help is just a call, text, or chat away!
From: Insider Adam
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Office of the Superintendent of Bankruptcy (OSB) Answer
Credit counseling itself does not stop wage garnishment. However, seeking professional credit counseling can help you explore options to manage your debts and may lead to negotiations with creditors, which could potentially stop or reduce garnishments. If you undertake a consumer proposal or declare personal bankruptcy, those processes can legally halt wage garnishment under the Bankruptcy and Insolvency Act (RSC 1985, c B-3). Specifically, Section 69 provides that once a consumer proposal is filed or bankruptcy is declared, any ongoing garnishments must cease. To effectively stop the wage garnishment, it is advisable to consult with a licensed insolvency trustee who can provide guidance on these options.
From: OSB Helper
Related Questions to If Credit Counseling Can Stop Wage Garnishment
Here are the top 5 frequently asked questions related to stopping wage garnishment through credit counseling or similar debt relief methods in Canada:
1. Can a consumer proposal stop a wage garnishment?
Yes, a consumer proposal can immediately stop a wage garnishment.
2. Do I need a lawyer to file a consumer proposal to stop wage garnishment?
No, you need a Licensed Insolvency Trustee to file a consumer proposal.
3. Can creditors refuse a consumer proposal?
Yes, creditors can vote against a consumer proposal, but it is often possible to negotiate a resolution.
4. Will credit counseling or a debt management plan stop a wage garnishment?
No, credit counseling or a debt management plan alone cannot stop a wage garnishment.
5. Can filing for bankruptcy stop a wage garnishment?
Yes, filing for bankruptcy can stop a wage garnishment through an automatic stay of proceedings.
If you have a question about debt see our debt questions or ask your own debt related question.
References
| Title, Source |
|---|
| Stopping Wage Garnishment, Canadian Debt Help |
| Consumer Proposals Explained, Government of Canada |
| Bankruptcy Basics, Canada Bankruptcy and Insolvency Act |
| Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3), Government of Canada |
Table of article references
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