Wage and bank garnishment after a Small Claims Court judgment

What garnishment is

Garnishment is a post-judgment enforcement step. The creditor obtains a notice of garnishment from the court and serves it on a third party (a garnishee) who owes or holds money for the debtor - typically an employer or a bank. The garnishee is then required to pay the attachable portion into court.

Wages: the ordinary 20% rule

Under section 7 of the Wages Act, $80% of a debtor's net wages is generally exempt from garnishment, leaving up to $20% attachable per pay period. A judge may increase or decrease the statutory exemption on a motion by either party where the facts justify it.

Support enforcement is different

Where the underlying obligation is a family-support order, different exemption rules apply and enforcement typically runs through the Family Responsibility Office. This site's estimator is not built for support enforcement and should not be used for that purpose.

Joint debts and Rule 20.08

Rule 20.08 addresses debts jointly payable to the debtor and another person, such as a joint bank account. The default mathematical assumption is that one-half of the joint amount - $50% - is attachable. That default is not a legal determination of ownership. The co-owner or the debtor can dispute the share, and the court can order a greater or lesser proportion based on evidence.

Protected funds

Certain funds are protected in whole or in part from garnishment - for example, specific pension and social benefit payments. If a garnishee statement suggests protected funds are in the account, the debtor should raise that issue on the record.

Ownership, set-off, and competing creditors

Garnishing a bank account does not resolve who legally owns the money. Banks may also assert set-off rights for amounts the debtor owes them, and other creditors may have prior notices of garnishment or priority under statute. Any of these can reduce or eliminate what the creditor recovers.