Can credit card companies garnish wages?

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Worried about your credit card debt and wage garnishment in Canada? Don’t stress too much. Credit card companies can’t just take your paycheck. First, they need a court judgment that confirms you owe the debt. Only then can they proceed with a garnishing order to collect from your earnings. Stay informed about your rights and reach out via phone, text, or live chat if you have any questions.

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Credit Card Wage Garnishment Question

Can credit card companies garnish wages? Can credit card companies garnish wages if I fail to pay my credit card bills on time?

From: Anonymous Question
Location: London, Ontario (ON)
Category: debt settlement

Credit Card Wage Garnishment Answer

In Canada, credit card companies do have the power to garnish your wages if you’re behind on your credit card payments. But don’t worry, they can’t just swoop in and take your paycheck on a whim. First, they have to get a court judgment by filing a lawsuit that confirms you owe the debt. Only then can they move forward with a garnishing order, allowing them to legally take a portion of your earnings straight from your paycheck to settle what you owe.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Yes, credit card companies can garnish wages in Canada if you fail to pay your credit card bills on time. Once a creditor obtains a court judgment against you for the unpaid debt, they can initiate wage garnishment. This process is governed under the Bankruptcy and Insolvency Act (RSC 1985, c B-3). Specifically, Section 68 of the Act allows creditors with a judgment to take further action, including garnishing wages, to recover the amounts owed.

Further details regarding garnishment procedures can be found in the relevant provincial regulations, which may provide specifics on how garnishment is implemented and the rights of consumers in this situation. Please consult your provincial regulations for additional guidance.

From: OSB Helper

Related Questions to Credit Card Company Wage Garnishing

Here are the top 5 most frequently asked questions related to the topic of wage garnishment by credit card companies, based on common online searches and current trends:

1. Can credit card companies garnish my wages?

Yes, credit card companies can garnish your wages after obtaining a court judgment.

2. How much of my wages can be garnished?

Creditors can generally garnish between 30%-50% of your wages, with specific exemptions varying by province[3][5].

3. Do credit card companies need a court judgment to garnish wages?

Yes, credit card companies typically need to obtain a court judgment before they can garnish your wages, although exceptions apply for certain creditors like the Canada Revenue Agency[1][3][5].

4. Can wage garnishment be stopped?

Yes, wage garnishment can be stopped through measures such as filing for bankruptcy or making a consumer proposal, which can impose a stay of proceedings against the creditor[3].

5. Are there any exemptions or protections from wage garnishment?

Yes, there are exemptions that protect a portion of your income from garnishment, such as the first $800 of your net income in Alberta, with adjustments for dependents[2][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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