Wage garnishment after foreclosure

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Sam12

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Wage garnishment after foreclosure
« on: February 18, 2014, 03:30:43 PM »
My mortgage was refinanced to provide money for home improvements.  The property has been foreclosed by the bank and sold, but there is an amount outstanding.  The collection company is threatening to garnish my wages. My name was never on the title, but I am a co-borrower.   Am I eligible for a consumer proposal to settle this matter once and for all?  I am a single mom, working and raising 2 children on my own.  My ex does not pay his child support payments.  If they can garnish my wages, how much can they take?  HELP, PLEASE!!!

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TreeFrog

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Re: Wage garnishment after foreclosure
« Reply #1 on: February 18, 2014, 07:41:19 PM »
Hi Sam,

I know they can only garnish a percentage of your wages, but I'm not sure what that percentage is.

It certainly sounds as if a consumer proposal would work for you. Best advice is to go see a trustee, and they can tell you your options. That first meeting is usually free. At the bottom of this page, under "Trustees in Canada," are listings for each province.

Best wishes,
~Wendy

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NotATrust-E

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Re: Wage garnishment after foreclosure
« Reply #2 on: February 18, 2014, 10:23:39 PM »
Assuming that you're actually on the hook for the payments, you would be eligible to use a consumer proposal in this situation, because the shortfall would be an unsecured debt. Having said that, a) Your total unsecured debt needs to be under $250,000 and b) If they're a majority creditor, they may play hardball with respect to the payment amount.

Wage garnishment rates vary by province. The collection company may just be blowing smoke, but you never know...

My mortgage was refinanced to provide money for home improvements.  The property has been foreclosed by the bank and sold, but there is an amount outstanding.  The collection company is threatening to garnish my wages. My name was never on the title, but I am a co-borrower.   Am I eligible for a consumer proposal to settle this matter once and for all?  I am a single mom, working and raising 2 children on my own.  My ex does not pay his child support payments.  If they can garnish my wages, how much can they take?  HELP, PLEASE!!!

 

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