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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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=== Garnishing orders against bank accounts=== | === Garnishing orders against bank accounts=== | ||
To get a garnishing order against a bank account, a creditor must start a legal action in either Small Claims Court or Supreme Court (see the section on Court Processes in Consumer and Debt Matters). The garnishing order can be obtained without a court hearing and without notice to the debtor. The creditor files an affidavit and a draft order with the court registry. A registry official processes the draft order and gives the completed order to the creditor to serve on the third party and the debtor. The affidavit and order must follow a format set out in the schedules at the end of the [http://canlii.ca/t/84h5 ''Court Order Enforcement Act'']. | To get a garnishing order against a bank account, a creditor must start a legal action in either Small Claims Court or Supreme Court (see the section on [[Court Process in Consumer and Debt Matters|Court Processes in Consumer and Debt Matters]]). The garnishing order can be obtained without a court hearing and without notice to the debtor. The creditor files an affidavit and a draft order with the court registry. A registry official processes the draft order and gives the completed order to the creditor to serve on the third party and the debtor. The affidavit and order must follow a format set out in the schedules at the end of the [http://canlii.ca/t/84h5 ''Court Order Enforcement Act'']. | ||
Because creditors often start legal action and get the garnishing order simultaneously, garnishing orders against bank accounts can take debtors by surprise. The first notice debtors may get is when they are served the paperwork for the legal action and the garnishing order at the same time. Or, a debtor’s first notice may even be the bank calling to say a cheque has bounced because the account was emptied by the garnishing order. | Because creditors often start legal action and get the garnishing order simultaneously, garnishing orders against bank accounts can take debtors by surprise. The first notice debtors may get is when they are served the paperwork for the legal action and the garnishing order at the same time. Or, a debtor’s first notice may even be the bank calling to say a cheque has bounced because the account was emptied by the garnishing order. | ||
