My husband and I met with a Bankruptcy trustee just over 3 years ago and were told that because our income level is so low that we did not "need" to declare bankruptcy, as my wages could not be garnished until we are above a certain level. My husband does not work and we still receive a supplement from Social Services (welfare), making a total monthly income for a family of 4 of $1600.00 to $1700.00. A creditor is now threatening to garnish 1/3 of my wages. Can he legally do this? If not, what do I need to do to stop them? I have always kept in touch with my creditors, keeping them informed of my situation.

Under the Alberta Civil Enforcement Act, judgement creditors can garnish 1/2 of any income over $1,400 for a family of 4. They cannot attach to income from Social Sevices (welfare). Creditors can, however, seize the entire contents of a bank account. If the creditor threatening to take 30% is the government (such as Revenue Canada) they do not necessarily have to leave you with the $1,400 mentioned above. You may want to call a Trustee again to clarify your situation.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca