What is a Garnishment or Requirement to Pay ?

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.
 
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