It’s important for people in Yukon, Canada to understand the wage garnishment laws in case they fall behind in debt repayments. It’s essential to understand a debtor’s established rights and obligations under the local mandates. This is especially important when there is debt that needs to be repaid but the debtor also has current commitments to pay for other obligations or services as well.
According to the Yukon Garnishee Act, unless otherwise stated, 70 percent of payable wages from an employer to a debtor are not attachable under a wrist of garnishment. The debtor’s employer is typically referred to as the garnishee. There are a few mandates that provide the minimum levels for monthly exemptions. The exemption level is higher for people that have children or multiple dependents.
When debtors are supporting at least one dependent, the minimum exemption is $1000 per month. People that support four or more dependents receive an additional $150 per month for the fourth dependent and each dependent thereafter. People without any dependents should expect to have significantly lower exemptions than this. People that have no dependents have a minimum exemption of $600 per month. The funds from wage garnishments are paid directly to the court.
The total of the debtor’s exemptions can be lowered by the court when there creditor files an application at the appropriate time. This applies when the creditor’s judgment against the debtor is on debt owed for lodging and board. The exemption can also be lowered when the court agrees with the creditor that the exemption is too high considering the debtor’s commitments and financial resources as well as any provisions that provide assistance to the debtor or the debtor’s dependents. Generally speaking, only 30 percent of a debtor’s wages can be garnished.
Under this act, “wages” are defined as fees, wages, commissions and other money payable by an employer to the debtor for serviced rendered or work completed while employed.. Once the creditor receives the court order it’s highly unlikely the creditor can be convinced to retract the wage garnishment. Not only does the debtor lose control and discretion over their own personal finances, the employer now knows about the worker’s financial struggles as well. Some jurisdictions permit garnishments before obtaining a money judgment as well. Wage garnishments must be renewed weekly for the duration of the order excluding when the order is filed within the week of the next payday.
There are two instances when the wage garnishment can be done with no court order necessary. This occurs when the debtor has relinquished an assignment of wage to the credit union. A wage garnishment can also be established without a court order when the debtor has outstanding back taxes owed to the Canada Revenue Agency. The court decides if the garnishment is legitimate and determines the amount of the garnishment as well. The process for creditors typically varies from province to province. There are usually needs to be an exact amount of debt calculated in order to levy a wage garnishment.
There are only a few ways to prevent wage garnishment in Canada. In order to prevent wage garnishments, debtors can file for bankruptcy, file a consumer proposal to creditors or pay off the debt. Many times a licensed bankruptcy trustee is able to help draft the bankruptcy or consumer proposal for the debtor. These actions are typically successful in preventing a wage garnishment in Canada. A licensed bankruptcy trustee can provide expertise on handling wage garnishments and making the most beneficial decisions. It’s always best to take decisive action as soon as possible when dealing with wage garnishments.
The Yukon Maintenance and Custody Order Enforcement Act mandates that the Director of the Maintenance and Custody Order Enforcement Act is expected to enforce the orders that are filed within the Office of the Director. Outstanding debt that is to be repaid under the guidelines of the maintenance order can be recovered by a wage garnishment in agreement with the provisions that are established under the Garnishee Act. It’s always best to contact the appropriate Canadian Territory or Province attorney in order to get the most recent information and updated laws.
Consumer Services within the Department of Community Services can be contacted at the Andrew Phillipson Law Centre on the third floor of 2130 Second Avenue PO Box 2703 (C-5) Whitehorse, Yukon Y1A 2C6. The website URL is www.community.gov.yk.ca/consumer/index.html and the online contact email is email@example.com. The contact phone number is 1-800-661-0408 ext. 5111 and the fax number is 867-667-3609. Take the time to contact the local office in order to get helpful information and contact numbers for assistance and service that may be able to improve any current garnishment obligations.
InfoAviator Publishing is a organization determined to help Canadian consumers understand wage garnishment laws that are currently residing in the cities and towns of (but not limited to) Carmacks, Dawson, Faro, Haines Junction, Mayo, Teslin, Watson Lake, Whitehorse, in Canada.