Recovering a debt can be difficult in Ontario. This can include seizing the debtor’s assets to repay the amount due. Creditors should follow all provincial laws if they want to go through the garnishment process.
Ontario’s Wages Act 63 only allows the creditor to garnish 20 to 50 percent of the debtor’s salary. The jurisdiction will depend on the debtor’s salary range and deductions in addition to their financial capability claims.
Wage Garnishment Procedure
The Registry Office receives all garnishment cases. It requires employers and creditors to provide all necessary documents before pursuing the case. The office will then identify the viability and completeness of all files given. This includes summons received, amounts overdue and all other information.
The office will then send the electronic file to the creditor and any other agencies concerned. This will include all essential information about the case, and it is sent using a secure encryption code. The Registry Office will then provide legal advice to the creditor in order to help him or her with the subsequent procedures involved in the case.
Creditors who want to recover their money from the debtor’s property or salary can pursue a garnishment. This is conducted in the civil court depending on the amount owed.
The judge will decide on the percentage of garnishment that will be taken from the debtor’s salary. A writ of execution will enforce the decision. This will allow the creditor to seize the debtor’s assets and deduct the amount due from the debtor’s bank account when they receive their wages. This will depend on the person’s financial ability to repay the amount due and other circumstances that affect him or her financially.
Garnishee Summons Validity
Garnishee summons have particular lengths and terms of validity. These are still considered valid even if the person starts working at a new company.
Garnishment Calculation and Fees
Commercial debts only allow the creditor to garnish a maximum of 20 percent from the debtor’s salary. This is applicable to debts of $400 and above. The garnishee summons for these debts is only valid for 15 days from the date issued. The debtor is required to pay the amount owed before the summons expires.
The creditor can garnish up to 50 percent from the debtor’s salary in cases that involve Family Support Payments. This also applies to amounts owed not lower than $400. The summons also requires the debtor to pay the amount owed to the MEP.
How to Avoid Wage Garnishment in Ontario
• Contact the Creditor
A debtor who is in danger of having his or her wages garnished because of an unpaid loan should try to communicate with the creditor first. He or she should speak with the creditor in order to avoid a garnishee summons. The debtor can also try to create a written agreement with the creditor that states the repayment terms and length.
Debtors and creditors are guaranteed full disclosure with garnishment cases. Employers who have filed cases against their employees should keep the case separate from the debtor’s personal files. They should provide sufficient security if there is a need to transfer files for garnishment cases.
Those who have already received a garnishee summons from creditors can also communicate with their creditors. They can contact the other party’s lawyer or speak directly with the person involved. Debtors can also get an experienced lawyer to handle the issue.
Lawyers have years of experience with regards to issues like these. They can help debtors avoid unnecessary charges that they may incur from their inability to successfully deal with the other party. Some debtors are often faced with undesirable payment terms and contracts. The debtor’s lawyer can try to make a deal with the creditor in order to find agreeable terms.
• File Personal Bankruptcy
Filing for personal bankruptcy will help debtors avoid having their wages garnished to pay for borrowed money. This is the best way of stopping employers and other creditors from filing a case that can harm the person’s finances. Personal bankruptcy will avoid summons from many types of financial institutions.
• Credit Unions
• Credit Card Companies
• Online Lending Bodies
• Lenders that Provide All Other Loans
However, filing for personal bankruptcy can be difficult, and it requires a lot of evidence. The debtor must present sufficient documentation that can support his or her claim. Debtors should also find expert lawyers to help them with their case as they do not always have the knowledge and skill to successfully prove the claim.
Information for Garnishment Filing
The creditor should provide all necessary information that can prove the claim. He or she should have copies of all summon letters. The creditor should also include the entire amount owed including all missed payments and interest incurred.
The receipts should also be kept as evidence and presented upon case filing. The dates when the payments were due and transfers of summons to particular agencies are also important to make the case strong. Creditors are not allowed to take additional steps unless all other documents are presented.
• Debtor or Employee’s Complete Name
• Debtor or Employee’s Work Status
• Court’s Name and Address
• Case Number or MEP Number
• Garnishment Application Date from Registry Office
• Expiration Dates of All Garnishee Summons
• Amount Due
See http://infoaviator.org/finance/credit/bad-credit-in-canada/debt-bad-credit-in-canada/wage-garnishment/2014/11/18/wage-garnishment-laws-in-canada/ for additional wage garnishment laws in Canada by province.
InfoAviator Publishing is a organization determined to help Canadian consumers understand wage garnishment laws that are currently residing in the cities of (but not limited to) Dryden, Temiskaming Shores, Elliot Lake, Pembroke, Kenora, Thorold, Port Colborne, Owen Sound, Brockville, Leeds and Grenville, Clarence-Rockland, Prince Edward County, Orillia, Stratford, Brant, Woodstock, Oxford, St. Thomas, Quinte West, Timmins, Haldimand County, Cornwall, Glengarry, Belleville, Welland, North Bay,
Norfolk County, Sarnia, Kawartha Lakes, Sault Ste. Marie, Peterborough, Niagara Falls, Pickering, Brantford, Waterloo, Thunder Bay, Guelph, Kingston, Cambridge, St. Catharines, Niagara, Barrie, Oshawa, Greater Sudbury, Burlington, Windsor, Kitchener, Vaughan, Markham, London, Middlesex, Hamilton, Brampton, Mississauga, Ottawa, and Toronto, in Canada.