How long before a creditor can garnish wages?

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In Canada, creditors need a court judgment to confirm a debt before they can garnish wages. This garnishment process may take weeks or months, depending on the case’s complexity and the court’s timeline. After winning, creditors quickly notify employers to start wage deductions.

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Garnishment Process Question

How long before a creditor can garnish wages? If I owe money, how long does it take for a creditor to start garnishing my wages?

From: Anonymous Question
Location: St Johns, Newfoundland Labrador (NL)
Category: debt settlement

Garnishment Process Answer

In Canada, if someone owes a debt, the person who’s owed the money – let’s call them the creditor – needs to first win a lawsuit to officially confirm the debt. This can take a bit of time, ranging from weeks to a few months, depending on how complicated things get and what the court schedule looks like. Once they win, they can then send a request to garnish wages which means they’ll notify the debtor’s employer to start cutting a bit from their paychecks. Employers usually roll this out quickly, so the debtor might see those deductions pretty soon.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, a creditor can begin to garnish wages after obtaining a judgment against the debtor. The process typically involves the following steps:

1. The creditor must file a claim in court and obtain a judgment for the debt owed.
2. After the judgment is granted, the creditor can then take action to enforce it, which may include wage garnishment.

Timeline can vary based on the legal process and jurisdiction, but generally, it can take several weeks to months from the point of initial default to having a judgment entered in court. Once a judgment is secured, the creditor can apply for a garnishment order without significant delay.

The specific timing and process can be referenced under the Bankruptcy and Insolvency Act, particularly section 68 regarding the effects of bankruptcy on creditors’ rights and enforcement actions.

From: OSB Helper

Related Questions to Court Judgement

Here are the top 5 most frequently asked questions related to the timeline and process of wage garnishment in Canada, formatted as requested:

1. How long does it take for a creditor to get a court order to garnish wages?

• A creditor must first sue you in court to obtain a judgement order, which can take several weeks to a few months, depending on the court’s schedule and the complexity of the case.

2. What steps must a creditor take before garnishing my wages?

• A creditor must obtain a court order against you, then apply for a garnishment order, which they will send to your employer[1][3][5].

3. Can a creditor garnish my wages without a court order?

• Certain creditors, such as the Canada Revenue Agency (CRA) and those with a voluntary wage assignment, can garnish wages without a court order[1][3].

4. How much notice do I get before my wages are garnished?

• You typically have 21 days to dispute the claim or make a payment arrangement after being notified of the court action before a garnishment order can be issued[1].

5. Can I stop a wage garnishment once it has started?

• Yes, you can stop a wage garnishment by filing for bankruptcy, making a consumer proposal, or paying the debt in full[1][2][4].

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

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