The Rebecca Martyn Bankruptcy Windsor Blog

Wage garnishments happen for one reason: the bill wasn’t paid so the creditor obtained court permission (with some exceptions) to take a portion of the debtors wages. This portion can be as high as 50%. The percentage that can be garnisheed is set according to the Ontario Wages Act.

There are only three ways to stop a wage garnishment:

1. the debtor has to work out a payment plan directly with the creditor;
2. file a consumer proposal; or
3. file bankruptcy.

A consumer proposal or bankruptcy stops all wage garnishments other than those dealing with alimony or support.

Upon filing the consumer proposal or bankruptcy, we will send a document known as a “stay of proceedings” to both the creditor, your employer, and in most cases the court, advising them that you have filed either a consumer proposal or bankruptcy and that the wage garnishment is to stop immediately.

If you have a wage garnishment and want to stop it, please call me in Windsor at 519-250-8060 or e-mail me today.

Bankruptcy is a legal process where the debtor (the person who owes the money) surrenders his or her assets. In exchange for this, their debt is discharged (released), subject to certain conditions. There are certain debts which are not released and these debts include, but are not limited to: student loans less than 10 years old, fines, alimony and support.

There are certain limits to which assets are surrendered in a bankruptcy in Windsor. The first, and sometimes most important consideration, is whether or not there is a lien on the assets. For example, if you have a house that is fully mortgaged, the bankruptcy will not seize the house. There are special considerations if you have a vehicle with a lien on it and we will be happy to speak with, or email you, about your vehicle. There are other exemptions allowing the bankrupt to keep the assets. These exemptions apply to furniture, clothing, and a vehicle (if there isn’t a lien).

During the course of the bankruptcy, there are duties to be performed such as submitting monthly income and expense statements, making payments, and attending 2 financial management sessions. These duties are discussed in greater detail in other blog entries.

If you want to learn more about bankruptcy and if it is the best option for you, call me in Windsor at 519-250-8060 or e-mail me to arrange a free initial consultation.