They can't take your whole paycheque.
In Ontario, a regular creditor must sue you and win in court first — and even then, the most they can take is 20% of your wages. Some income can't be touched at all. Here's how garnishment really works.
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In 30 seconds, here's what's true
- For an ordinary debt (credit card, loan, payday loan), a creditor can't garnish your pay until they've sued you, won a court judgment, and filed a garnishment. They can't just start taking money.
- Ontario's Wages Act protects 80% of your wages. That means the most a regular creditor can garnish is 20% of your net pay (after tax, CPP, and EI).
- For child or spousal support, the limit is higher — up to 50% of your net wages can be taken to enforce a support order.
- ODSP, Ontario Works, and most pensions can't be touched by ordinary creditors. The main exceptions are support orders and the CRA, which has special powers.
- Filing a consumer proposal or bankruptcy with a Licensed Insolvency Trustee triggers a legal 'stay' that stops most garnishments — often within days. (Support garnishments are not stopped.)
How the process works
Figure out what kind of garnishment it is
Is it an ordinary creditor (needed a court judgment), a support order (through the Family Responsibility Office), or the CRA (for tax debt)? The rules and limits are different for each. This is the first thing to pin down.
Check that they actually have a judgment
An ordinary creditor must have sued and won before garnishing. If you were never served with court papers, or the debt is wrong, you may be able to challenge the judgment or the garnishment.
Check if the debt is too old
In Ontario, a creditor generally has 2 years from your last payment to sue. If the debt is older and you never acknowledged it, they may not be able to get the judgment they need — but you must raise this; the court won't do it for you.
Ask the court to lower it if it's causing hardship
Under the Wages Act, a judge can increase your exemption (lower the garnishment) if 20% would cause real hardship. You bring a motion, on notice to the creditor, explaining your finances.
Get free help and consider your options
A community legal clinic can help you dispute the debt. A Licensed Insolvency Trustee can set up a proposal or bankruptcy, which stops most garnishments. Don't ignore it — act early.
What to do next
- Find out who is garnishing you: ordinary creditor, support (FRO), or CRA.
- Confirm whether the creditor actually has a court judgment against you.
- Calculate 20% of your net pay so you know the legal maximum for an ordinary debt.
- Check the date of your last payment — is the debt more than 2 years old?
- Confirm that any protected income (ODSP, OW, pension) isn't being wrongly taken.
- Gather your pay stubs and a simple budget showing your expenses.
- Contact a community legal clinic or a Licensed Insolvency Trustee (free consultation).
- Start a free PLAIN session to sort out which type it is and your next step.
Common myths
| Myth | Reality |
|---|---|
| A creditor can take my whole paycheque. | No. For an ordinary debt, the Wages Act protects 80% of your pay — the most they can take is 20% of your net wages. |
| They can garnish my wages without going to court. | An ordinary creditor must sue and win a judgment first. Only the CRA (for tax) and the Family Responsibility Office (for support) can skip that. |
| They can garnish my ODSP or Ontario Works. | No. Social assistance is protected from ordinary creditors. The only exception is a support deduction order through FRO. |
| If I owe support, they can take everything. | Support enforcement is capped at 50% of your net wages (though up to 100% of a tax refund or lump sum can be taken). |
| There's nothing I can do once a garnishment starts. | You can dispute the debt, ask the court to lower the amount for hardship, negotiate, or file a proposal or bankruptcy to stop it. |
| Bankruptcy or a proposal won't stop a garnishment. | Filing triggers an automatic 'stay of proceedings' that stops most garnishments — often within days. (Support garnishments continue.) |
| A payday lender's wage assignment means I can't say no. | If you signed a wage assignment for a regular creditor, you can cancel it in Ontario. (A credit union is the one exception.) |
| An old debt can still be garnished no matter what. | A creditor generally has 2 years to sue. If it's older and you never acknowledged it, they may not be able to get a judgment — but you must raise the limitation as a defence. |
Last reviewed June 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with a licensed professional.
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