If a creditor has already gone to court and obtained a garnishee summons allowing them to garnishee your wages, the wage garnishment will only stop once it is paid, or if the creditor agrees to stop it.
You can attempt to make a deal with the creditor.
Call the creditor, or the creditor’s lawyer, and offer to make a settlement.
You could tell them that you agree to pay the balance owing, and you will provide them with post dated cheques to repay the debt.
It is possible that if you speak directly with the creditor, they may agree to alternate payment arrangements.
However, in our experience, it is highly unlikely that a creditor will agree to stop a garnishment once a garnishee summons has been ordered. Here’s why:
You owe the creditor money. They tried to collect with phone calls, letters, and collection agents, and they were not successful. They then spent the money to go to court to get a garnishee summons. Now they are receiving money from your employer every time you get paid. Why would they cancel a sure thing (money from your employer) in exchange for possible payments from you, probably for a lesser amount than they are getting already?
Clearly, it is unlikely they will agree to that type of deal.
Trying to negotiate directly with the creditor is worth a try, but if it doesn’t work your next options would be to consider a consumer proposal or a personal bankruptcy, which in most cases will immediately stop all wage garnishments from Ontario.
If you are threatened with a wage garnishment, or are currently being garnisheed, we recommend that you call one of our offices in Ontario or e-mail us immediately to determine your options.