Ontario Securities Act

Garnishment orders are generally granted once the creditor has proven the debt and obtained a court judgment. Specific situations where garnishment orders are commonly used include:

Unpaid Loans - When a debtor fails to repay a loan, the creditor can use garnishment to recover the outstanding balance directly from the debtor’s bank accounts or wages.

Unpaid Child or Spousal Support - Garnishment is commonly used to enforce child support or spousal support payments, ensuring that the funds are transferred directly from the debtor’s income to the entitled party.

Overdue Taxes - Government agencies may use garnishment orders to collect unpaid taxes from individuals or businesses by seizing funds from bank accounts or other assets.

Unpaid Court-Ordered Judgments - If a debtor fails to satisfy a judgment voluntarily, the creditor can seek garnishment to recover the owed amount directly from available funds.

While garnishment can be an effective tool for debt recovery, it is subject to strict legal requirements and limitations. Key legal issues include:

Legal Threshold and Notice - Garnishment typically requires a valid court judgment, ensuring that the debtor has had an opportunity to respond to the claim. The debtor must be notified of the garnishment and given a chance to address any issues before it begins.

Garnishment Limits - Most jurisdictions limit the percentage of income that can be garnished, protecting debtors from excessive hardship. This cap ensures that essential living expenses remain accessible to the debtor.

Exempt Income - Certain types of income, such as social assistance or disability benefits, are usually exempt from garnishment. These protections help ensure that individuals maintain access to necessary resources for their well-being.

Third-Party Compliance - Garnishment orders require cooperation from third parties, like banks or employers, who may be responsible for withholding and transferring funds. Non-compliance can result in penalties or fines for the third party.

Multiple Garnishments - If a debtor has multiple garnishment orders, the court may need to determine priority or limit garnishment amounts, ensuring that obligations are met fairly and in compliance with legal limits.

At ME Law, we provide expert legal support for clients seeking or responding to garnishment orders, helping ensure compliance and effective debt recovery. Our experienced legal team offers a range of services:

Filing for Garnishment Orders - We assist creditors in preparing and filing applications for garnishment, gathering necessary documentation and navigating the court process to secure a legally enforceable order.

Defense Against Garnishment - For debtors facing garnishment, we offer representation to challenge or modify the order, protecting exempt income and ensuring fair treatment under garnishment limits.

Coordination with Third Parties - We provide guidance to employers, banks, and other third parties involved in garnishment, ensuring they understand their obligations and comply with the order to avoid potential penalties.

Enforcing Multiple Garnishments - Our team assists creditors in enforcing multiple garnishments fairly, addressing priority issues and ensuring compliance with legal caps on garnished income.

Exemption Claims - We help debtors identify and claim exempt income, ensuring their rights are protected and that essential funds are available for living expenses.

Garnishment orders are effective tools for debt recovery, but they require careful handling to ensure legal compliance and protect all parties involved. At ME Law, we offer tailored solutions to help you navigate garnishment, whether you’re a creditor seeking recovery or a debtor needing protection. Contact us today to discuss your needs and ensure a fair and lawful resolution.