A wage garnishment by a creditor is stopped on the date that someone files a consumer proposal or personal bankruptcy. From my office in Kitchener, I e-file the consumer proposal or personal bankruptcy documents to the government right after they are signed. From that moment in time, there is a “Stay of Proceedings” that stops garnishment. This stay of proceedings is then faxed to the payroll department to advise them that the garnishment must stop.
Please note, that neither a personal bankruptcy nor a consumer proposal can stop or change family law support garnishments.
Let’s talk about the process and timing to get to the point when the garnishment is stopped. The first thing we need to do is to arrange a free meeting in my Kitchener office to sit down and discuss the situation and options in detail. This meeting can take 30 minutes to 1 hour. From there, if a consumer proposal or personal bankruptcy is decided on, we need to complete an application with basic information. The application information is inputted into our computers and official government documents are printed – ones to be sent to the government and creditors. If there is a garnishment in place, we can complete the paperwork in a timely manner. The final step to make the procedure official is to come back into the office to sign all the paperwork.
Garnishments happen for many different reasons but the fact of the matter is that if someone is having part of their pay taken for an existing debt, it can really affect their ability to pay everyday living expenses. If you have a garnishment or are facing a garnishment and want to discuss your options with me call us at 519-747-0660 and we can get started right away.