Navigating Judgements, Liens, and Garnishments in Canada: Understanding Your Rights

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Understanding your rights is crucial, whether you are in a strong financial position or facing challenges. Life will continue, even when faced with seemingly final situations such as judgements, liens, or wage garnishments.

Bankruptcy or Consumer Proposal: Stopping Creditor Actions

If a creditor obtains a judgement against you, it doesn’t signify eternal subjugation. Filing for bankruptcy or a consumer proposal in Ontario halts all actions from your creditors against you. This means that even if a judgement has been made against you, once you file for bankruptcy or a consumer proposal, the creditors cannot initiate new actions, and their previous actions are stayed as of the filing date. After completing the bankruptcy or proposal process, any seizure, garnishment, or lien will be entirely eliminated.

It’s worth noting that there is typically a delay period before a judgement can be enforced, providing you with some time to organize your affairs. The duration of this delay will vary based on the type of action and the province you reside in. To learn more, consult a trustee in your area.

Stopping Wage Garnishment with Bankruptcy or Consumer Proposal

If a creditor has already initiated action, such as beginning a wage garnishment, filing for bankruptcy or a consumer proposal can bring it to a halt almost instantly. As soon as you file, your trustee will inform your employer, allowing them to cancel any garnishment not yet processed by the payroll department.

The only lien that persists after bankruptcy or proposal is one filed by the Canada Revenue Agency (or Revenue Quebec in Quebec). A lien against your property filed by the CRA cannot be removed through bankruptcy or a consumer proposal. Nonetheless, in the event that you have outstanding debts to the CRA and they have not placed a lien on your assets, it is possible to incorporate these tax liabilities into your bankruptcy or proposal, which will prohibit any future actions.

Contact an Insolvency Trustee for Assistance

If you’re facing creditor actions such as wage garnishments, seizure liens, or judgements, don’t wait to take action. Contact Dana MacRae Insolvency Trustee Ontario today to explore your options and take control of your finances. With our expertise, you can determine whether bankruptcy or a consumer proposal is right for you and move forward with confidence. Understanding your rights is crucial when facing financial challenges, and a qualified professional can help you navigate even the most complex situations.

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