How Does a Garnishee Work? Are There Limits to What Can Be Garnished in Edmonton, Alberta?
By Barton K. Goth A garnishment (often referred to as a garnishee) is one common method of collecting debts. With a garnishee, your creditors must obtain court permission to take money directly from your pay cheque or bank account. The garnishee that is issued by the court will be effective for a one year and if the full balance of the outstanding debt is not paid in that time the garnishee must be renewed by the creditor. Wage Garnishment A wage garnishment is the most common type of garnishee. With a wage garnishment, a copy of the court order is sent to your payroll office and they will withhold a portion of your payroll each month and send it directly to your creditor. In Canada, each province has legislation that governs what percentage of your pay cheque your typical creditors (i.e. not Canada Revenue Agency) can take. In Alberta, you are you are entitled to keep 100% of your first $800 of net take home income (after tax). Of the next $1600 (i.e. anything greater than $800 and less than $2400), you are permitted to keep half. Your creditors can garnishee 100% of your income above this $2400 cut-off. These are the limits that are set by the Alberta provincial government for each individual who is subject to a garnishee. However, if you have Dependants these limits do fluctuate. The limits are adjusted by $200 for each dependent in your care. To better illustrate this calculation we have provided a breakdown of two different situations below: Situation A: single person, no dependents, net income of $3200 per month Income Available Percentage available Amount Garnisheed $0.00 and $800 0% $0.00$800.00 and $2400.00 50% $800.00Above $2400 100% $800.00Total amount of garnishee $1,600.00 Situation B: single person, 1 child, net income of $3200 Income Available Percentage available Amount Garnisheed $0.00 and $800 0% $0.00 $1000.00 and $2600.00 50% $800.00 Above $2600 100% $600.00 Total amount of garnishee $1,400.00 Bank Account Garnishment When monies are garnisheed directly from a bank account there is no limit. This means that a creditor can take 100% of the money in any account held with the institution served with the legal documents. There is no special treatment for money required to live, or a pay cheque that is deposited directly into your bank account; a creditor can take anything that is on deposit with the bank in question. The only exceptions are for monies that are paid under the Social Development Act, Assured Income for the Severely Handicapped Act, or under the Widows Pension Act. If you are currently being garnisheed or at risk of being garnisheed, it is important to note that you do have a few options. For more infomation on how the filing of a personal bankruptcy or a consumer proposal can immediately remove these garnisments feel free to contact Goth and Company Inc. at 780-435-5110, visit us online at www.bankruptcy-edmonton.com, or e-mail us a question. Barton K. Goth is a senior advisor with Goth & Company Inc. Trustee in Bankruptcy. Goth & Company Inc. is an Edmonton based firm licensed by the Federal Government and committed to helping people find solutions to financial difficulties. For more information about bankruptcy or the various alternatives available visit http://www.bankruptcy-edmonton.com/, post a question on their or contact directly. Article Source: http://EzineArticles.com/?expert=Barton_K._Goth http://EzineArticles.com/?How-Does-a-Garnishee-Work?–Are-There-Limits-to-What-Can-Be-Garnished-in-Edmonton,-Alberta?&id=523910 texas bad credit used car loan calculate taxes from paycheck long term payday loans bad credit secured loan company
