Wage Garnishment in Ontario: What You Can Do

What Is Wage Garnishment?

Wage garnishment in Ontario is a legal process by which a creditor who has obtained a court judgment against you can collect payment directly from your wages. The creditor files a Notice of Garnishment with the court and serves it on your employer. Your employer deducts the specified amount from each pay cheque and remits it to the court, which forwards it to the creditor.

Can Any Creditor Garnish Your Wages?

In Ontario, a creditor can only garnish your wages if they have first obtained a court judgment against you. There is an exception: the Canada Revenue Agency (CRA) has the authority to issue a "Requirement to Pay" directly to your employer without first obtaining a court order.

How Much Can Be Garnished?

Ontario limits the amount that can be garnished from wages: creditors can garnish up to 20% of your net take-home pay. However, this limit does not apply to family support obligations — unpaid child support or spousal support can be garnished up to 50% of your net wages through the Family Responsibility Office.

How to Stop Wage Garnishment

• Pay the debt in full: The most straightforward solution — once paid, the garnishment ends.
• Negotiate with the creditor: Creditors are often willing to accept a lump sum settlement or payment plan to avoid the administrative burden of garnishment.
• File a Consumer Proposal or Bankruptcy: Either immediately triggers a "stay of proceedings," stopping most wage garnishments (except family support obligations).
• Challenge the underlying judgment: If the creditor obtained the judgment improperly (for example, without properly serving you), you may be able to set it aside.