Garnishment is a legal enforcement mechanism by which a creditor collects a debt by requiring a third party who owes money to, or holds money for, a debtor to pay those funds directly to the creditor. It is most commonly used to seize wages, bank accounts, or other receivables belonging to a judgment debtor. In Canadian law, garnishment operates after a legal entitlement to payment has been established, typically through a judgment or statutory authority, and is governed by principles of procedural fairness and proportionality.

Parties Involved

Garnishment involves three distinct parties:

• the creditor, who seeks to enforce payment of a debt;
• the debtor, who owes the debt; and
• the garnishee, the third party in possession of, or obligated to pay, the debtor’s funds, such as an employer or financial institution.

The garnishee is legally compelled to comply with the garnishment order once properly served.

Legal Basis and Scope

Garnishment is not a self-help remedy. It is authorised by court order or statute and must comply with procedural requirements set out in applicable laws. It may apply to:

• wages and salaries;
• bank deposits;
• accounts receivable;
• contractual payments due to the debtor.

Certain categories of income are exempt or partially protected to preserve a basic standard of living. 

Garnishment of Wages

Wage garnishment is subject to strict limits in Canadian law. Only a prescribed portion of a debtor’s earnings may be garnished, ensuring that the debtor retains sufficient income for basic needs. These limits reflect public policy considerations aimed at balancing debt enforcement with social protection. Employers served with a garnishment order must deduct the specified amount and remit it in accordance with the order. Failure to comply may expose the employer to liability. 

Exemptions and Protections

Canadian law recognises exemptions designed to protect vulnerable debtors. Common protections include:

• limits on the percentage of wages that may be garnished;
• exemptions for certain benefits and support payments;
• priority rules where multiple claims exist, such as family support obligations.

These exemptions are rooted in fairness and human dignity, rather than creditor preference. 

Procedural Requirements and Fairness

Garnishment proceedings require proper notice to affected parties and compliance with statutory procedures. Debtors typically have the right to:

• receive notice of the garnishment;
• challenge improper or excessive garnishment;
• apply for variation or relief based on hardship or error.

Courts retain supervisory authority to prevent abuse of the process.

Obligations of the Garnishee

Once served, the garnishee must:

• identify funds or obligations owed to the debtor;
• withhold or pay funds as required;
• comply within prescribed timelines.

Non-compliance can result in the garnishee being held personally liable for the amount that should have been paid. 

Conclusion
Garnishment is an effective but intrusive enforcement tool. For creditors, it provides access to funds otherwise shielded by the debtor’s control. For debtors, it can affect livelihood and financial stability, making statutory protections essential. In Canadian law, garnishment reflects a balance between the enforcement of lawful debts and the protection of fundamental economic security. It is a controlled remedy, grounded in judicial oversight, fairness, and proportionality.