Question: I’ve been negotiating with my collectors with some success except one. I have a small unsecured debt with a retail chain. I tried to negotiate with them and make payments but they refused and said they had to go ahead and garnish my wages.
In anger, I stupidly made the comment go ahead, I can’t do anything else.
Will they go ahead with this wage garnishment? The last thing I want is my employer to know I’m in trouble.
Answer: Probably not, but they might. It costs money for a creditor to go to court, sue you, and obtain a wage garnishment. In most cases if the amount is small they won’t bother.
However, if you don’t pay, a creditor can take you to court and attempt to garnishee your wages. If they do, you are left with three choices:
1. let the garnishment continue until they have been repaid in full (including legal costs)
2. file a consumer proposal; or
3. file bankruptcy in Ontario.
It’s up to you to decide which option is best for you. For more information, read this article on How to Stop a Wage Garnishment?