If you’re dealing with debts you cannot afford to pay, your creditor might process a wage garnishment to help recover the money directly from your wages.
This can happen with little warning and will continue to happen until the debt is paid off.
If, for whatever reason, your debts have become unmanageable and unaffordable, having a garnishment will likely only make your situation worse.
To prevent further payments taken and to help you back on track with your finances, it’s important to see help as soon as possible.
A consumer proposal can be one effective way of dealing with your debt, allowing you to negotiate with your creditors for more favorable repayment terms and help you clear your debts in an affordable way.
A consumer proposal will lift a garnishment and ensure your wages remain your own.
If you’re wondering when does a garnishment get lifted in a consumer proposal, and how a consumer proposal can help with your debts, we tell you what you need to know below.
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About wage garnishments
When you leave debts unpaid, your creditor can file an order with the court to reclaim the money owed straight from your wages.
Should this happen, you could find yourself unable to afford many of your regular expenses and find yourself in more financial trouble.
A garnishment can be a stressful action, but the good news is that there are some things you can do about it.
Filing a consumer proposal
While quitting your job is one way to stop a wage garnishment, it isn’t exactly the best course of action.
However, if you file a consumer proposal, you can make an arrangement (via a Licensed Insolvency Trustee) with your creditors to either reduce your debts, your repayment or your interest rate to help you clear your debts and enjoy a fresh start.
Ideally, you’ll want to file a consumer proposal before a garnishment is put in place, but this isn’t always possible.
By contacting a Licensed Insolvency Trustee, you can get things moving with your proposal and stop communications from creditors, which can be relentless and upsetting.
When does a garnishment get lifted in a consumer proposal?
A garnishment will be lifted as soon as a consumer proposal is filed, helping to take a weight off your shoulders and stop worrying about your wages disappearing.
While a consumer proposal will affect your credit file and take time to complete, it could be the best solution to help you deal with your debts.
It’s important to remember that should you fail to complete your consumer proposal or you stop making repayments, the garnishment could be put back in place.
A consumer proposal is an effective solution to manage your debts if you’re struggling and help teach you how to manage your money better.
If you want to find out more about filing for a consumer proposal, get in touch with Bankruptcy Canada today.
We can discuss your wage garnishment and help you take the right course of action to put an end to your debts for good.
Call us free today on (877) 879-4770 and let our friendly team help you take the first step towards becoming debt-free.
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