Stopping a Wage Garnishment By Filing a Consumer Proposal With Creditors
When you are in debt, you could have multiple creditors who you owe money too.
Creditors will often explore multiple options to gain money that they are owed or entitled too.
This could include court-mandated wage garnishments where the amount owed is deducted from your monthly wages.
This can be a significant amount too and creditors can take as much as 20% to pay off what is owed to them.
Usually, this will be a course of action they take if you default on payments.
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What Is Wage Garnishment?
The first thing that has to be done if someone wants to garnish your wages is that a Statement of Claim has to be filed.
This is because it is a legal proceeding.
You’ll be provided with a total 21 days to act upon this claim and you can either dispute the debt or notify them that there has been an error.
If you don’t respond then it will be assumed that you agree to pay the debt that you owe through the garnishment order.
You might think once an order has begun, there is no way to fight it or indeed stop it.
However, this is not the case and with a consumer proposal, you can stop the action completely.
Pay Off Your Consumer Proposal
If you want to stop wage garnishment, then you have to carry through with your consumer proposal.
The process for this, however, can take up to five years, although as soon as the agreement commences, the wage garnishment will stop as it is no longer allowed to continue legally.
However, if you don’t adhere to the terms of the consumer proposal, then it becomes invalid and the wage garnishment can start again from the creditor that you owe.
Think about your repayment strategy and if you’re going to consider taking out loans to pay it off, then you’re going to harm yourself more.
Keep in mind that consumer proposals don’t collect interest while you’re paying them off.
Speak To A Licensed Insolvency Trustee
Formerly known as bankruptcy trustees, a licensed insolvency trustee is there to help you get the debt relief that you need.
These people can help you in ways that you might not even know existed such as through a consumer proposal.
They are hired to administer debt relief and help you to get approval from creditors.
You need to ensure that you speak to one of these people, as they are the only ones who can file the proposal for you.
As such, conduct thorough research before you settle on a single person to help you.
If you are interested in learning more about how to stop wage garnishment, make sure that you contact us today.
A friendly member of our team will be happy to assist you.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal