How do you stop a wage garnishment?

If your paycheque is being targeted by creditors, it’s a critical question to ask – and we have the answer.

Stopping a wage garnishment immediately is vital to your financial health:

• A wage garnishment removes a percentage of your paycheque automatically.
• It can be embarrassing – your employer (or clients if you’re self-employed) will find out that you are being garnished.
• And it can put you in even more debt if you can’t afford your other expenses because of the garnishment.

Luckily there are ways to stop a wage garnishment in its tracks. One of these methods is by filing for a consumer proposal.

In a consumer proposal you make an offer to your creditors to settle your debt for a lower amount than you owe. The majority of your creditors must accept your proposal and they must think that it is more beneficial to them than if you were to file for bankruptcy instead.

To qualify for a consumer proposal, you must:

• Have less than $250,000 in unsecured, non-mortgage debt.
• Be able to demonstrate your ability to repay at least a portion of your debt.

Benefits of filing a consumer proposal:

• It stops collection actions by creditors – including wage garnishments.
• As long as the majority of your creditors accept the proposal it is binding on all creditors whether they voted against the proposal or not.
• In most cases you can keep your home, car, and investments.
• It allows for one low, interest-free monthly payment.
• It can be paid in full at any time, at no additional cost.

A consumer proposal stays on your credit rating for three years from the date it is paid in full as opposed to a bankruptcy that will remain on your credit for six years from the date that it is discharged.

How to file for a consumer proposal:

A consumer proposal is filed by a Licensed Insolvency Trustee (LIT) – formerly known as a Bankruptcy Trustee. But it’s important to note that LITs represent both you and your creditors and they are paid on a percentage of the consumer proposal they negotiate. The larger the settlement, the more money they make.

We recommend working with an independent financial advisor who is strictly on your side to advocate for you throughout the consumer proposal process. At DebtCare Canada, we do just that. We perform an independent review of your financial situation and make practical recommendations that will work for you.

If a consumer proposal is your best choice, we will work with you and structure the terms of your proposal before you meet with an LIT. With our assistance we will schedule a meeting with a Trustee and negotiate on your behalf as well as supervise the entire process.

Stop a wage garnishment today. Contact us to get started. Call 1-888-890-0888 or visit www.debtcare.ca.