Wage garnishment is a legal order that makes your employer send part of each paycheque to a creditor or the court before you’re paid. For private creditors, such as a bank, a credit card issuer or a collection agency, it comes only at the end of a lawsuit: the creditor has to sue, win a judgment, and then get a separate garnishment order. Provincial law then sets how much of your pay is protected. This page covers that process, the provincial limits, and the ways a garnishment can be stopped or reduced. The debt strategies hub lists the other guides.
Two kinds of creditor don’t follow this court route. The CRA can take money from wages or a bank account with an administrative Requirement to Pay, without suing; why the CRA took money from your account explains how that works, and what happens if you don’t pay the CRA covers CRA collections more broadly. Provincial maintenance enforcement programs can also garnish wages for child or spousal support under the support order itself.
Who can garnish wages, and how
| Creditor | Court judgment needed first? | How much |
|---|---|---|
| Bank, credit card issuer, lender, collection agency | Yes, then a garnishment order | Limited by provincial law (table below) |
| Landlord, for rent arrears | Yes, an order from the tenancy board or court, then enforcement through the court | Limited by provincial law |
| Maintenance enforcement program (support) | No; the support order is enough | Higher limits than for ordinary debts |
| CRA (taxes, and federal student loans it collects) | No; administrative Requirement to Pay | Set by the CRA (see the CRA guides above) |
How a private creditor gets to garnishment
| Step | What happens |
|---|---|
| 1. Default | Payments stop; the creditor or an agency tries to collect |
| 2. Lawsuit | The creditor files a claim in court and has it served on you |
| 3. Your response | You have a set time to file a defence (in Ontario, 20 days) |
| 4. Judgment | If you don’t respond, the creditor can get a default judgment; if you do, the court decides |
| 5. Garnishment order | The creditor applies for a garnishment notice or order against your wages or bank account |
| 6. Employer served | Your employer must deduct the allowed amount from each pay and send it to the court or sheriff |
From the first missed payment to the first garnishment usually takes months, because each step involves the court. Ignoring the claim at step 3 is what shortens it most, since a default judgment can follow soon after the deadline. Calls from a collection agency alone don’t mean garnishment is imminent; debt collection rights in Canada covers what agencies may do before a lawsuit, and a creditor that waits too long loses the right to sue at all under the limitation periods by province.
How much of your pay is protected
Each province sets the share of wages that can’t be garnished for ordinary debts. Support orders can take more.
| Province | Limit for ordinary debts | Notes |
|---|---|---|
| Ontario | Wages Act: 80% of wages exempt (20% garnishable) | Support and maintenance orders can take up to 50% |
| Alberta | Civil Enforcement Act: first $800/month exempt (+$200/dependant); 50% garnishable between $800 and $2,400/month (+$200/dependant); 100% garnishable above $2,400/month | Court can adjust the exemption on application |
| British Columbia | Court Order Enforcement Act: 70% of net wages exempt by default (30% garnishable) | A judge can raise the exemption to as much as 90% on application |
| Saskatchewan | Enforcement of Money Judgments Act: exempt amount is the greater of 70% of net wages or $1,500 per pay period (+$300/dependant) | Most wages are exempt at lower incomes |
| Manitoba | Garnishment Act: 70% of wages exempt (30% garnishable), with a minimum exemption of $250/month (no dependants) or $350/month (with dependants) | |
| Quebec | Code of Civil Procedure: 30% of gross income above an indexed weekly exemption may be seized | Calculated on gross income, unlike most other provinces |
| Nova Scotia | Civil Procedure Rules: roughly 15% of gross wages garnishable, subject to a minimum protected amount | Courts can vary this on application |
These are the defaults. Most provinces let a court change the exempt amount on application, for example where the garnishment leaves too little for basic needs.
How to stop or reduce a garnishment
| Option | How it works |
|---|---|
| Pay the judgment in full | The garnishment ends once payment is confirmed |
| Agree a payment plan with the creditor | Many creditors will withdraw or pause a garnishment in exchange for regular payments; get the agreement in writing |
| Apply to the court to reduce it | Most provinces let a court raise the exempt amount if you can’t meet basic living costs |
| Challenge the judgment | Possible when you weren’t properly served, the debt isn’t owed, or there was a valid defence such as an expired limitation period; a legal clinic or lawyer can advise |
| File a consumer proposal or bankruptcy | Garnishment by the included creditors must stop once filed |
A consumer proposal or a bankruptcy is filed through a Licensed Insolvency Trustee, and once it’s filed, creditors are legally required to stop collection action, including wage garnishment. Consumer proposal vs bankruptcy explains both, including which debts, such as support, aren’t covered.
If your employer is served
- Ask payroll for a copy of the garnishment notice, which names the creditor, the court and the amount.
- Contact the creditor or its lawyer about a payment arrangement; an agreement in writing may lead them to withdraw the garnishment.
- Look at the whole debt picture. One judgment often means other creditors are close behind. What to do when you can’t pay your bills covers which debts come first, and the debt relief options guide compares the ways out, from a payment plan to the formal processes.