Garnishees By Creditors And By The Government

The amounts allowable under Garnishee Orders are governed in Alberta by the Civil Enforcement Act while some are governed by other Government Statutes such as the Income Tax Act and Maintenance Enforcement Act. Any garnishee will be based on your actual net earnings; IE: what you are actually being paid, net of deductions.  I'm going to recommend that you try to talk to one of our Trustees before a garnishee order happens to try and deal with them in another manner.  IE:  can we restructure these debts for you. Unless the Court gives your creditor an Order stating another amount, you will be entitled to keep: - a minimum $800 net pay for yourself plus $200 for each dependant, -plus ½ of the difference between (your net pay less the minimum amount above) -to a maximum of $2,400 net pay for yourself plus $200 per dependant So for example, if your net pay is $2,500 and there are 3 in your home: -minimum of ($800 for yourself + $600 for dependants) = $1,400 to keep -plus ½ of ($2,500 - $1,400) = $550 -equals a total of $1,950 that you would be entitled to keep. Certain types of income are exempt from garnishee (eg: Social Assistance, AISH, Widow’s Pension), but regular employment earnings can be garnisheed to the above amounts. And other creditors may obtain Orders to garnishee more (most commonly income tax and maintenance debts). So basically with the 2 types of debt you mentioned (Motor Vehicle Accident Fund and EI), it will likely be up to the discretion of the Court as to how much they will allow them to garnishee.   If you can, try to review your situation with one of our Trustees or Counselors to avoid the garnishee. Donna Carson, CGA, CIRP, Trustee Calgary, Airdrie, Drumheller regions 1.877.500.0792     donna.carson@mnp.ca