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Wage Garnishments

Wage Garnishments

What Happens To My Wages? Do I Have Surplus Income?

If you file a Consumer Proposal or go bankrupt you can/will continue to work and be paid in the normal course by your employer.  If your wages are being garnished, upon filing your Consumer Proposal or bankruptcy, the Licensed Insolvency Trustee will immediately take the legal steps to stop the garnishment.

In a bankruptcy, until the date of your discharge, a portion of the net income you earn in excess of that necessary to maintain a reasonable standard of living (“Surplus Income”) must be paid to the Licensed Insolvency Trustee. The payment amount is determined by taking into account the standards issued by the Superintendent of Bankruptcy and your personal and family situation. We will explain how the Surplus Income amount is calculated. If you or your creditors object to the amount of Surplus Income to be paid, we must request mediation. Failure to pay the required Surplus Income payment to us, as the Licensed Insolvency Trustee, may affect your discharge. Until discharged, you are required to inform us of any material changes in your personal or family financial situation. This may change the amount of the required surplus income payments.


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