Debt Options Guide
Wage Garnishment in Canada
Updated
Most creditors need a court judgment before they can garnish your wages, and provincial law limits how much can be taken. The CRA is the exception: it can issue a Requirement to Pay to your employer without going to court. Filing a consumer proposal or bankruptcy triggers a stay of proceedings that stops most garnishments, including the CRA's.
How a garnishment starts
A creditor sues, gets a judgment, then files a garnishment with the court. Your employer must then send a portion of each paycheque to the court or creditor. You are usually notified when the garnishment is filed.
Ways to stop it
- Pay the judgment or negotiate a settlement the creditor agrees to withdraw
- Ask the court to reduce the amount if it causes hardship (rules vary by province)
- File a consumer proposal or bankruptcy with a Licensed Insolvency Trustee
Limits by province
Exemption rules differ by province and depend on income and dependants. Check your province's local page or contact the provincial court for the exact exemption.
Free tools
Related guides
- CRA Tax Debt and the Requirement to PayWhat a CRA Requirement to Pay means, how CRA garnishes wages and bank accounts, payment arrangements, taxpayer relief, and how tax debt fits into a proposal or bankruptcy.
- Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
- Your Rights When a Collection Agency CallsWhat collection agencies can and can't do in Canada, how to verify a debt, limitation periods by province, and which provincial regulator to complain to.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.