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Difference between revisions of "When a Creditor Wants to Take Money From Your Wages or Bank Account"
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When a Creditor Wants to Take Money From Your Wages or Bank Account (view source)
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In applying to release a garnishing order, the material must explain why it would be “just in all the circumstances” to release the order. For example, if you’re claiming a garnishing order causes you serious financial hardship, provide a snapshot of your financial situation. Include a statement of finances and any other information that backs up your position. | In applying to release a garnishing order, the material must explain why it would be “just in all the circumstances” to release the order. For example, if you’re claiming a garnishing order causes you serious financial hardship, provide a snapshot of your financial situation. Include a statement of finances and any other information that backs up your position. | ||
Tip | {| class="wikitable" | ||
People’s Law School’s information on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/dealing-debt/creditor-wants-take-money-your-wages-or-bank-account garnishment] provides step-by-step guidance on applying to set aside a garnishing order. | |align="left"|'''Tip''' | ||
People’s Law School’s information on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/dealing-debt/creditor-wants-take-money-your-wages-or-bank-account garnishment] provides step-by-step guidance on applying to set aside a garnishing order. | |||
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Common questions | ==Common questions== | ||
I owe money to a creditor. Can they take my entire pay cheque to satisfy the debt? | ===I owe money to a creditor. Can they take my entire pay cheque to satisfy the debt?=== | ||
No. The law in BC says a creditor can garnish up to 30% of a debtor’s net income — that is, after statutory deductions for things like income tax, Canada Pension Plan, and Employment Insurance. This means you’d keep at least 70% of your pay cheque. | No. The law in BC says a creditor can garnish up to 30% of a debtor’s net income — that is, after statutory deductions for things like income tax, Canada Pension Plan, and Employment Insurance. This means you’d keep at least 70% of your pay cheque. | ||
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(Special rules apply if a creditor’s claim is for spousal or child support payments; see above.) | (Special rules apply if a creditor’s claim is for spousal or child support payments; see above.) | ||
What happens to money paid into court? | ===What happens to money paid into court?=== | ||
A creditor must apply to court to get access to any money that has been paid into court under a garnishing order. | A creditor must apply to court to get access to any money that has been paid into court under a garnishing order. | ||
I’ve been served with a garnishing order. What should I do? | ===I’ve been served with a garnishing order. What should I do?=== | ||
Never ignore a garnishing order served on you. There are serious consequences for not complying with a court order. | Never ignore a garnishing order served on you. There are serious consequences for not complying with a court order. | ||
You have two options. | You have two options. | ||
#You could pay into court whatever amount you owe the debtor (up to the amount claimed in the garnishing order). Whatever amount you pay into court you don’t have to pay to the debtor. | |||
You could pay into court whatever amount you owe the debtor (up to the amount claimed in the garnishing order). Whatever amount you pay into court you don’t have to pay to the debtor. | #Your second option, if you believe you don’t owe the debtor anything, is to file a “dispute note” in court. This note explains why you don’t owe the debtor anything. It doesn’t have to be on a particular form; it can be on your letterhead. If the creditor disagrees with you, then a judge will decide the matter. | ||
Your second option, if you believe you don’t owe the debtor anything, is to file a “dispute note” in court. This note explains why you don’t owe the debtor anything. It doesn’t have to be on a particular form; it can be on your letterhead. If the creditor disagrees with you, then a judge will decide the matter. | |||
Get help | ==Get help== | ||
With managing your finances | ===With managing your finances=== | ||
The Credit Counselling Society of BC is a non-profit society that helps people better manage their money and debt. | The '''Credit Counselling Society of BC''' is a non-profit society that helps people better manage their money and debt. | ||
:Toll-free: 1-888-527-8999 | :Toll-free: 1-888-527-8999 | ||
:Web: nomoredebts.org | :Web: [http://www.nomoredebts.org/ nomoredebts.org] | ||
