How to Stop Wage Garnishment in Alberta

Facing financial challenges is stressful enough, but wage garnishment can make it feel even worse, especially when your hard-earned pay is taken before it even hits your bank account. Many people find themselves in this situation. The good news is that there are practical and legal ways to stop or reduce wage garnishments. Understanding the process and knowing your options can help you feel empowered instead of trapped. With the right approach, it’s possible to protect your income, plan your budget, and start rebuilding financial stability.

This guide will walk you through what wage garnishment is, how it works in Alberta, and, most importantly, the legal steps you can take to stop it and safeguard your money. By the end, you’ll have a clearer picture of your rights and a roadmap for taking back control of your financial future.

What Is Wage Garnishment?

Wage garnishment occurs when a creditor takes a portion of your paycheck directly from your employer to repay a debt. This can occur in cases of outstanding credit card balances, loans, taxes, or child support obligations.

In Alberta, most creditors must get a court order before garnishing your wages. The Canada Revenue Agency (CRA) is an exception, as they can take money from your pay without a court judgment.

While it can feel alarming to see part of your income withheld, knowing the rules and your rights can help you protect yourself and take steps to regain control of your finances.

How Does Wage Garnishment Work in Alberta and When Can Creditors Garnish Wages?

After a creditor obtains a court judgment, they can issue a Garnishee Summons to your employer. This legally requires your employer to withhold a portion of your wages and remit it to the creditor until the debt is fully repaid or the garnishment order is lifted.

You will receive notice before the wage garnishment begins, providing an opportunity to take prompt action and explore your legal options to protect your income.

How to Stop Wage Garnishment

If you’re wondering how to stop wage garnishment in Alberta, here are your best legal options:

1. Negotiate Directly with Your Creditor

Before a garnishment order is issued, consider negotiating a payment plan or settlement. Many creditors are willing to work with you if they see a good-faith effort to repay the debt.

2. File a Consumer Proposal

A Consumer Proposal is one of the most effective ways to stop wage garnishment in Alberta. It is a legally binding agreement filed through a Licensed Insolvency Trustee (LIT), allowing you to repay a portion of your debt over time while retaining your assets and halting all collection actions, including wage garnishments. Once your Consumer Proposal is filed, creditors must immediately cease all legal actions under the Bankruptcy and Insolvency Act.

3. Consider Personal Bankruptcy

If your financial situation is severe and other solutions aren’t feasible, filing for bankruptcy will also stop wage garnishment right away. Like a Consumer Proposal, bankruptcy triggers an automatic stay of proceedings, which legally prevents creditors from taking any further action.

Also Read:

Alternatives to Bankruptcy	Debt Settlement Companies vs. Licensed Insolvency Trustees
Debt Relief Options in Alberta	Consumer Proposal Eligibility

4. Seek Help from a Licensed Insolvency Trustee

A Licensed Insolvency Trustee is the only professional authorized in Canada to administer Consumer Proposals and bankruptcies. They can assess your financial situation, explain your options, and help you choose the best path to stop wage garnishment while rebuilding your financial stability.

At SCB Debt Solutions, our experienced LIT and financial advisors guide Albertans through debt relief processes with care and clarity. We ensure you understand your rights and regain peace of mind.

How Long Before CRA Garnishes Wages and How to Stop It

Unlike private creditors, CRA can garnish wages without going to court if you owe back taxes. Typically, they will send a “Requirement to Pay” notice to your employer or bank after previous attempts to collect have gone unanswered.

If you’ve received notice from the CRA, contact a Licensed Insolvency Trustee right away. Filing a Consumer Proposal or declaring bankruptcy will stop CRA wage garnishment right away, giving you the opportunity to manage your debt responsibly and protect your income.

Take the First Step To Stop Wage Garnishment

If you’re facing wage garnishment in Alberta, know that help is available.

At SCB Debt Solutions, our Calgary-based Licensed Insolvency Trustee can help you stop wage garnishment, protect your income, and create a personalized plan to rebuild your finances.

With the right guidance, it’s possible to stop garnishments, regain control of your finances, and start planning for a secure future. You don’t have to face this situation alone.

Book your free, confidential, and judgement-free consultation today to take the first step toward financial peace of mind.

FAQs on Wage Garnishment

How much of my paycheque can be garnished in Alberta?

In most cases, up to 50% of your net wages (after tax) can be garnished, but the exact amount depends on your income level and household circumstances. Speaking with a Licensed Insolvency Trustee can help you understand the exact amount for your situation.

Will wage garnishment affect my credit score?

The garnishment itself won’t show on your credit report, but the unpaid debt that led to it likely already appears as a collection item or judgment.

What happens if I change jobs during a wage garnishment?

The garnishment doesn't disappear when you switch employers. Once your new employer is identified, they can also be compelled to begin withholding wages. A legal solution, like a Consumer Proposal or bankruptcy, can stop garnishment, not changing employment.