Wage Garnishment Alberta

 

What is wage garnishment & how much can wages Be garnished?

A garnishment of wages is when a court issues an order requiring your employer to withhold a certain amount of your paycheck and send it directly to the person or institution to whom you owe money. This continues until your debt, and often other incidental fees are paid off. The Canada Revenue Agency does not need a court application to garnish wages.

The rules for how much can wages be garnished varies from province to province. Generally, the garnishment rules in Alberta are such that you keep the first $800 of your net income, then creditors may garnish up to 50% of your income between $800 and $2400, and 100% of any net income over $2400. The exemption amount may be increased depending on how many dependants you have. Be aware that if you owe Canada Revenue Agency or if you owe for child support or alimony, these same rules do not apply.


How to stop wage garnishment:


If you have received a threat of a Alberta garnishment, you have received notice that a court application will be made on a specific date, or if your employer has been served with a garnishment order directing them to pay the creditor a portion of your paycheck, you still have options.

Ways to stop the garnishment:


  1. Call the creditor and negotiate payment terms and have them remove the garnishment;
  2. Liquidate assets or obtain a loan to pay off the creditor in full;
  3. Ceasing employment with that employer, though not often the best option, will not give the creditor any income to garnish;
  4. File an Orderly Payment of Debts plan;
  5. File a Consumer Proposal
  6. File a Bankruptcy
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A licensed insolvency trustee in the filing of a Consumer Proposal or a Bankruptcy will reach out to your employer and serve them with the appropriate documents to ensure a garnishment is stopped. This protection applies to amounts owed to the Canada Revenue Agency as well.
I need help with a potential garnishment

What should I do to stop a wage garnishment?


If you are worried about a creditor or the government garnishing your wages, contact us at The Fryzuk Group Inc. to discuss your options and to get the guidance you need to make the best choices for your situation. You can do this by calling us at 403-561-8228, texting us at 587-438-9786 or emailing debtfree@recoverfromdebt.ca.