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Unfortunately, your credit will most likely suffer if your wages get garnished, although the actual wage garnishment isnt really the problem. Its the court judgement to garnish your wages thats a matter of public record and usually shows up on your credit report.
6 Options If Your Wages Are Being Garnished Try To Work Something Out With The Creditor. File a Claim of Exemption. Challenge the Garnishment. Consolidate or Refinance Your Debt. Work with a Credit Counselor to Get on a Payment Plan. File Bankruptcy.
Respond promptly to the court order (if the order requires). The employer must return a statutory response form within the required amount of time (set by the court order). The form is typically sent to the employer with the garnishment order. Respond quickly to avoid the risk of a court-issued penalty.
CRA has the right to garnish up to 50% of a debtors wages if the debtor is employed and up to 100% of the debtors income if the debtor is a contract worker. Self-employed debtors who bill their clients directly can have 100% of their income directed to the CRA in order to pay off their outstanding tax debts.
The garnishee is the person holding the property (money) of the debtor. An employer may be a garnishee because the employer holds wages to be paid to an employee (who is a debtor).

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A garnishment judgment will stay on your credit reports for up to seven years, affecting your credit score.
Most garnishments affect defendants wages. For example, a court might garnish a defendants wages to pay child support, student loans, or back taxes.
2. Respond to the garnishment notice. The notice you received in the mail may ask that you complete and return a form (usually a verification of employment) providing information about your business and employee. Return it by the date requested.
Wage garnishment is a legal procedure in which a persons earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.
Creditors and debt collectors do not want to put more effort than they have to into your case. Even after a garnishment has started, there is always the opportunity to try to negotiate a resolution. Putting pressure and trying to negotiate provides you a chance to stop the garnishment.

garnishment letter to employee template