Simply put, a garnishment is a legal document that intercepts monies owed to you and redirects them to the Canada Revenue Agency. Most commonly a garnishment is sent to employers and financial institutions. But a garnishment, or Requirement to Pay as they are sometimes called, can also be used to capture:
- Rental income
- Alimony payments
- Registered Income Funds
- Privately administered pensions
- Interest or dividend income
- Shareholder loans
- Ontario Health Insurance Payments
- Legal aid billings
- Bank accounts and lines of credit
- Accounts receivables
Regardless of where the garnishment is sent the effect is the same – your money is gone. And your relationship with the third party, the person or business that the document is sent to, is adversely affected.
Don’t let this happen to you!
Contact National Tax Service and let us help you today.