ARTICLE · 06 DECEMBER 2023

Garnishment: Frequently Asked Questions

Devry Smith Frank LLP

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Garnishment is a legal process often initiated when individuals default on their financial obligations. Garnishment orders allow creditors to seize assets – typically a person's wages – from third parties.

CanadaInsolvency/Bankruptcy/Re-Structuring

Devry Smith Frank LLP

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What is garnishment?

Garnishment is a legal process often initiated when individuals default on their financial obligations. Garnishment orders allow creditors to seize assets – typically a person's wages – from third parties. These orders can also be used to access funds in a debtor's bank account. This financial recourse is usually pursued by creditors when they have exhausted other means of debt collection. In most cases, garnishment can only be sought after a creditor has obtained judgment against a debtor. However, in some instances, like with debts owed to the Canada Revenue Agency (CRA), garnishment can occur without the necessity of obtaining a court order.

Who can seek an order for wage garnishment?

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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