How to Stop Wage Garnishment in Alberta: A Step-by-Step Guide

Is your paycheque being garnished, leaving you struggling to make ends meet? You’re not alone, and there are ways to stop it. Wage garnishment can take a large portion of your income, making it difficult to pay rent, bills, and buy necessities. The good news? You have options to protect your earnings and regain control of your finances.

This guide explains how wage garnishment works in Alberta, what your legal rights are, and how to stop a garnishment quickly — including the Orderly Payment of Debts (OPD) program, a proven solution for Albertans facing financial hardship.

What Is Wage Garnishment?

Wage garnishment is when a creditor legally takes money from your paycheque to repay a debt. In most cases, this happens after a creditor sues you and wins a court judgment. Once they have that order, your employer is required to withhold part of your pay and send it to the creditor.

Common Reasons for Wage Garnishment in Alberta:

• Unpaid credit card debt
• Personal loans
• Unpaid rent or bills
• Government debts (e.g., CRA tax arrears, child support) – These don’t require a court order. Federal student loans in default may also be subject to garnishment without a court order.

How Much Can They Take?

Under Alberta’s Civil Enforcement Act (current as of June 1, 2024), wage garnishment follows these rules:

• The first $800 of your net monthly income is exempt
• 50% of earnings between $800 and $2,400 can be garnished
• 100% of income over $2,400 can be garnished
• If you have dependents, your exemptions increase by $200 per dependent

Example: If you take home $1,800 a month, the first $800 is safe, but 50% of the remaining $1,000 can be garnished — meaning you’d lose $500 from each paycheque.

Important: Child support and CRA debts don’t follow these limits. The CRA can garnish wages without a court order, and in some cases, up to 30%+ of your paycheque.

How to Stop Wage Garnishment in Alberta

If your wages are being garnished, you can stop it. The sooner you act, the faster you can regain your full paycheque. Here’s how:

1. Negotiate with Your Creditor

Before a creditor garnishes your wages, they usually try other collection methods first. If you reach out before it goes to court, they may agree to a payment plan or debt settlement instead of garnishment.

• Contact your creditor and ask if they’ll accept a lower monthly payment
• Offer a lump-sum settlement if possible
• Get any agreement in writing

Tip: Creditors prefer to get paid voluntarily rather than go through legal proceedings. If you show you’re willing to pay, they may stop the garnishment.

2. Enroll in the Orderly Payment of Debts (OPD) Program

For Alberta residents, the OPD program is one of the best ways to legally stop wage garnishment. It’s a government-approved debt repayment plan that lets you:

• Consolidate all your unsecured debts into one monthly payment
• Reduce interest rates to 5% (instead of high credit card or loan rates)
• Stop wage garnishments and collection calls after the paperwork is filed with the court.

How OPD Works:

• Money Mentors, Alberta’s exclusive provider of OPD, works with the courts to consolidate your debts.
• Your creditors must comply — this is a court-ordered repayment plan.
• You repay your debt over time at 5% interest, making payments more affordable.

Wage garnishment is stopped as soon as you’re enrolled in the Orderly Payment of Debts program, giving you immediate financial relief.

Learn more about OPD here or book a free consultation.

3. Visit a Licensed Insolvency Trustee to Explore Consumer Proposals or Bankruptcy

If OPD isn’t the right fit for your situation, you can work with a Licensed Insolvency Trustee (LIT) to explore two additional options:

• Consumer Proposal: A consumer proposal allows you to negotiate with creditors to reduce your total debt and pay back a portion over time — often at a lower amount. This legally stops wage garnishment immediately and lets you keep your assets.
• Bankruptcy (Last Resort): Filing for bankruptcy also stops wage garnishment right away, but it has serious consequences, including long-term credit impact (6-7 years) and potential loss of non-exempt assets.

While bankruptcy should be a last resort, a consumer proposal can be a less severe alternative that still provides legal protection against wage garnishment.

FAQs: Wage Garnishment in Alberta

Can I quit my job to avoid garnishment?

Technically, yes, but the debt doesn’t disappear. A creditor can restart the garnishment when you get a new job or freeze your bank account.

Can my employer fire me for being garnished?

No. Alberta law protects employees from being fired due to a wage garnishment.

How long does a wage garnishment last?

Until the debt is paid off or you take legal action to stop it (like enrolling in OPD or filing a consumer proposal).

Can I be garnished for government debts?

Yes. CRA debts and child support can be garnished without a court order. Federal student loans in default may also lead to wage garnishment without court action, but private or provincial student loans typically require legal proceedings.

What’s the fastest way to stop wage garnishment?

OPD and consumer proposals stop garnishment immediately once approved.

Take Action: Get Your Full Paycheque Back

A wage garnishment can leave you struggling, but you don’t have to face it alone. There are proven ways to stop it and take back control of your finances.

• Reach out to Money Mentors for free help
• Explore the OPD program to stop wage garnishment immediately
• Create a plan to pay off debt and protect your financial future

Speak with one of our Accredited Financial Counsellors and get the support you need to stop wage garnishment and start fresh.