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Legal options available to stop or reduce wage garnishment include objecting to the garnishment order, filing a claim of exemption, negotiating a repayment plan with your creditor, or filing for bankruptcy. This article will discuss these options.
Employees cannot be fired because their wages are garnished. Federal law protects you from being fired simply because your wages are being garnished for a single debt. However, if your wages are being garnished for two or more debts, your employer may be able to terminate you.
If you're looking to put a stop to wage garnishment, you have four options: Repay your debt. Negotiate with your creditor. File a consumer proposal. File for bankruptcy.
5 Ways to Stop a Garnishment Pay Off the Debt. If your financial situation is dire, paying off the debt may not be an option. ... Work With Your Creditor. ... Challenge the Garnishment. ... File a Claim of Exemption. ... File for Bankruptcy.
When the debt has been paid in full but the notice of garnishment hasn't expired. Once the amount owed by the debtor has been paid to the creditor, the creditor must immediately serve a Notice of Termination of Garnishment [Form 20R] on the garnishee and on the clerk of the court.