HOW IS GARNISHMENT DEFINED?
Garnishment is a legal procedure that a creditor can take after the court grants a judgment against you.
The creditor must first go to court and establish that the debt is owed. If that’s done, the creditor gets a judgment against you as the debtor, and the court issues a summons. The summons allows the creditor to take your assets to satisfy the debt.
Each province has specific rules on which assets a creditor can seize to satisfy a debt. The creditor can take your assets (if not exempt) and can request a garnishment from the court to permit them to take the money owed (“garnishee”) from many sources.
- Your paycheck
- Your bank account
- Money owed to you by others (for example, your accounts receivable if you are self-employed)