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Difference between revisions of "Garnishment and Set-offs"
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Garnishment and Set-offs (view source)
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== Summary of the law== | == Summary of the law== | ||
[[File:Consumer_Law_and_Debt_-_Garnishment_and_Set-offs.jpg|thumb|275px|right| link=| <span style="font-size:50%;">Image via www.istockphoto.com</span>]] | |||
'''Garnishment''' is a statutory remedy governed by part 1 of the [http://canlii.ca/t/84h5 ''Court Order Enforcement Act'']. It allows a creditor to seek a court order to access money owed to a debtor by someone else (that is, a third party). The most common money “attached” (redirected to a creditor) are wages and bank accounts. For example, suppose an employer (the third party) owes wages to an employee (the debtor). The creditor may be able to garnish a portion of the wages for payment on the debt. When a debtor has money in a bank account, the money in the bank is considered a debt owed to the debtor. The creditor may be able to garnish the bank account for payment on the debt. | '''Garnishment''' is a statutory remedy governed by part 1 of the [http://canlii.ca/t/84h5 ''Court Order Enforcement Act'']. It allows a creditor to seek a court order to access money owed to a debtor by someone else (that is, a third party). The most common money “attached” (redirected to a creditor) are wages and bank accounts. For example, suppose an employer (the third party) owes wages to an employee (the debtor). The creditor may be able to garnish a portion of the wages for payment on the debt. When a debtor has money in a bank account, the money in the bank is considered a debt owed to the debtor. The creditor may be able to garnish the bank account for payment on the debt. | ||
