When bankruptcy is filed the garnishee is stopped, by law.
If the garnishee is imminent but not yet filed the trustee will contact the creditor and inform him of the filing of the bankruptcy and put that person on notice that filing a garnishee will be of no effect since under the law a Stay of Proceedings is in effect that prevents garnisheeing the wages.
If the garnishee is already in place the trustee will advise the employer that a bankruptcy has been filed and any garnishees, by law, must stop immediately.
For more information about how bankruptcy works please refer to this link.
How quickly can bankruptcy be filed?
If you have any questions about this or other aspects of bankruptcy or consumer proposals you can set up a FREE consultation with our trustees, who are in every province and territory in Canada.