Legal Question in Credit and Debt Law in Canada

Re: Threat or Bluff?

This reply is specific to British Columbia and does not apply to any other province.

1. A court order is necessary to garnish wages unless the debt is for taxes or the agency garnishing is the Family Maintenance Program. The are other cases where a court order is not necessary but they are rare.

2. The garnishing order can take 70% of net for unpaid spousal/child support and 50% of most (but not all) other debts.

3. You must be served with the garnishing order but generally this occurs after the order has been granted and served on your employer.

4. A garnishing order for wages can not be issued until after a judgment to pay money has been obtained (except for taxes). A court order to pay spousal/child support is a judgment for money.

5. Your accounts can't be "frozen" for a debt; what can occur is that a garnishing order can be obtained to "empty" accounts held solely in your name (NOT those jointly held with another person) and the money will be paid into the court trust account. This can occur before or after a judgment has been obtained. It is only wages that can't be garnished before a jusgment, but if you've been paid and the money deposited inyour account, then that money is "fair game" and can be garnished.

6. You shoud be worried: In B.C. certain collection practices are allowed and certain are prohibited. You shapud contact the better business bureau to see if the colection agency is legitimate and if the practices they are following are allowed; you cn also contact the provincial government to see if the colection agency is legitimate and if the practices are allowed. You should contact a lawyer immediatley if you receive papers or if you receive notice that your accounts are garnished; if your accounts or wages or any other monies are garnished you have a right to apply to the Registrar of the court to release the money, or if a judgment for the payment of money has been made against you, to apply for an order that the debt be paid by installments.

You should contact a lawyer for advice on your specific situation as this information is general in nature; please be advised that as you did not give your province of residence that this information ONLY APPLIES TO B.C.; each province is different-some very different than B.C.