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| Author: |
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Jeff |
| Date: |
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November 1, 2003 |
| Question: |
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CMHC has come after my wife for her previous home with her first husband for $30,000. They will settle for a lump sum of $4000. However that is not possible and they are threatening to garnish her pay at the tune of 50% of gross. Is that legal/possible? Is there recourse, if that leaves us no possibility of surviving?
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From: |
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Ann Clarke, Alger & Associates Inc. |
| Date: |
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November 3, 2003 |
| Answer: |
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CMHC has the right to garnish your wife's wages for any outstanding debt
but 50% is likely high. We often see 30% being seized, however. The
formula for seizing wages is usually based on the level of income and
family size. If your wife is unable to pay the debt she may need to look
at a bankruptcy as that would stop any garnishment of wages. I'd suggest
you call a Trustee such as Alger & Associates to discuss the situation.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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