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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)
Revision as of 22:41, 17 February 2019
, 22:41, 17 February 2019→Common questions
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===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 [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-78/latest/rsbc-1996-c-78.html#sec3_smooth 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. | ||
Note a garnishing order applies only to wages owing within seven days of the order. A new garnishing order must be issued and given to your employer every pay period. | Note a garnishing order applies only to wages owing within seven days of the order. A new garnishing order must be issued and given to your employer every pay period. | ||
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#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== | ||