I recently met with a lady who has a wage garnishment against her salary.
About a year ago a wage garnishment was placed on her pay by a creditor who had been awarded a judgment against her through Small Claims Court.
She was in a relationship with an individual who erroneously told her that if she filed for bankruptcy or a consumer proposal she would never be able to buy a house or purchase a new vehicle so she had struggled financially because of this garnishment for over a year.
Being a single parent, it was hard for her to work overtime to try to make ends meet because working would increase her daycare costs and increase the percentage of salary the garnishment would take from her wages.
After having her wage garnished for over a year it was putting her behind in all her other payments and started affecting her health.
We discussed her options and it was decided that the bankruptcy option best fit her situation and would stop the garnishment against her wages.
Her concern was how this would affect her credit going forward. I explained that her credit was already affected and that we could help her navigate through the bankruptcy process, and the mandatory counselling would help her with her budget so she can make plans to buy that house one day.