I assume there are rules about garnisheeing of wages. Is this correct? Assuming I am correct how much of one’s earnings can they garnishee? Most of my debt is to the governemt, are they still bound by these rules.
Are there limits to a garnishee
Posted on Monday, March 31, 2008
posted by Questions @ 7:51 pm
1 Expert Comment:
At April 7, 2008 |
6:36 am
, Barton Goth GCO Bankruptcy Trustees Said...
Yes there are limits to how much can be garnisheed from peoples wages. I will explain the guidelines below, but keep in mind this is when dealing with a normal creditor, Canada Revenue Agency is not a normal creditor and therefore aren’t subject to these rules.
In Alberta, a normal creditor, you are entitled to keep the first $800 of your take home income (net income), half of any remaining money you earn up to $2,400, and nothing above $2,400 (i.e. they can garnishee 100% of your income above the $2400 cut-off). These limits are then adjusted by $200 for each dependant in your care.
Regardless of who the creditor is you are left with the following options: pay the debt in full, terminate your employment, or file a consumer proposal or a bankruptcy
to your creditors.
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