Wage Garnishment Prevention
Wage garnishment is a process that occurs as a result of a court order requiring an employer to withhold a percentage of an employee’s earnings (salary, commissions, bonuses) as payment on a debt. It is often a last-resort action after a creditor has tried and failed on several occasions to obtain payment.
A wage garnishment can be applied to pay for any type of debt, with the most common examples being:
- Delinquent child support or alimony
- Defaulted student loans
- Outstanding income tax payments
- Credit card debt
Individuals undergoing wage garnishment may be unable to obtain a loan or even open a bank account, and it can have a negative impact on your credit rating. It can also severely limit your ability to provide the basic necessities of life for you and/or your family.
Can a Wage Garnishment be Stopped, Reversed, or Postponed?
While it is very difficult to have a wage garnishment reversed, postponed, or stopped altogether, there are some options that you can pursue. At Mortgage Intelligence, we have established partnerships with over 50 lenders across Canada, including major banks, credit unions, trust and insurance companies, and other national, regional, or private lenders. This includes occasions in which we have worked together with these lenders to postpone or reverse wage garnishments through the following actions:
Paying off the debt entirely – Perhaps through a line of credit or a private mortgage
Negotiating with creditors – Arranging to repay the debt through a one-time partial payment followed by monthly installments
Demonstrating how the garnishment is adversely affecting basic living expenses – Documenting income versus monthly expenses such as mortgage or rent, utilities, groceries, medications, etc.
Working through any of these options with your bank, lending institution, or creditors will necessitate the involvement of experienced professionals.
Tip: One way to stop a wage garnishment is to prevent it from occurring in the first place. If you have recently received a summons to appear in court, or you are being repeatedly contacted by a creditor or a collections agency, you should seek professional legal and financial advice immediately.
Natasha Bridgmohan and her team at Mortgage Intelligence will help guide you through the various postponement or reversal options, answer all of your questions, and ensure that you obtain the best possible outcome. Our in-house team features mortgage brokers, credit specialists, a private lender, a debt settlement consultant, a qualified insolvency counsellor, a property inspector, and real estate agents. With this expert group of specialized professionals, we are fully supported and well-positioned to serve your unique needs.
For further information on how we can help you deal with a wage garnishment, contact Natasha and her team of mortgage brokers in Toronto today. Call us at 1-866-553-7467 ext 221 or 905-851-8871 ext 221.