{"id":5180,"date":"2015-08-10T00:00:00","date_gmt":"2015-08-10T04:00:00","guid":{"rendered":"https:\/\/dev-ginsberg-gingras.flywheelsites.com\/3-ways-to-avoid-a-seizure\/"},"modified":"2021-04-13T18:16:19","modified_gmt":"2021-04-13T22:16:19","slug":"3-ways-to-avoid-a-seizure","status":"publish","type":"post","link":"https:\/\/ginsberg-gingras.com\/en\/3-ways-to-avoid-a-seizure\/","title":{"rendered":"3 Ways To Avoid a Seizure"},"content":{"rendered":"Anyone who neglects to repay his or her debts risks being subject of a seizure.<\/strong> A seizure is a way for creditors to avoid losing money.<\/p>\n

The best way to avoid a seizure is undeniably to pay your debts on time. Unfortunately however, it is not always possible. Let\u2019s start by providing an overview of the various types of seizures.<\/p>\n

Note: This post was updated on April 16, 2018.<\/em><\/p>\n

Types of seizures<\/h2>\n

3\u00a0types of seizures are available to the creditors.<\/p>\n

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  1. \n

    Garnishment of wages<\/h3>\n

    The garnishment of wages begins with a filing to the court of an application by the creditor to whom the debtor owes money. If a judgement is obtained, the creditor will be allowed to carry it out by garnishing a part of the debtor\u2019s wages. The amount of revenues and the number of dependants are some of the criteria used to determine the garnishable part of his or her wages.
    \nIn Qu\u00e9bec, the garnishable part is set at 30% of the gross wages after exemptions<\/strong>; it can be as high as 50% of the gross wages in the case of alimony.
    \nIn Ontario, it instead corresponds to 20% of the net wages after exemptions<\/strong>; it represents 50% of the net wages in the case of alimony.
    \nAs for self-employed workers, 100% of their accounts receivable can be seized.<\/strong><\/li>\n

  2. \n

    Bank account seizure<\/h3>\n

    The bank account seizure and blocking are means frequently used by the Canada Revenue Agency and Revenu Qu\u00e9bec to get a taxpayer who has a tax liability to react.
    \nA financial institution may also\u00a0\u2014\u00a0in the case of a credit card debt, for example\u00a0\u2014\u00a0collect the minimum amount to be paid directly from the customer\u2019s bank account.<\/li>\n

  3. \n

    Personal property seizure<\/h3>\n

    The process of personal property seizure slightly differs in Qu\u00e9bec and Ontario.
    \nIn Qu\u00e9bec, essential personal property is exempt from seizure up to a maximum value of $7,000. Clothing, as well as tools used to perform a trade, are also exempt from seizure.
    \nIn Ontario, the exemption for essential personal property is $11,300. It stands at $5,650 for personal belongings, whereas it also corresponds to 11,300\u00a0$ for tools used to perform a trade. As for motor vehicles, their value must be lower than $5,650 to be exempt.
    \nAny other personal property not needed for life can generally be seized to repay debts through the issuance of a writ of seizure in Qu\u00e9bec or a writ of execution in Ontario.<\/strong><\/li>\n<\/ol>\n

    3\u00a0ways to avoid a seizure<\/h2>\n

    When it becomes impossible for you to make your payments, be proactive. By neglecting the situation, you would just be adding to the problem and delaying the inevitable. You can benefit from 3\u00a0alternatives, amongst others, to try and stop your creditors from engaging in seizure procedures.<\/p>\n

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    1. \n

      Negotiations with the creditors<\/h3>\n

      If you are going through a rough time or if you are faced with an unforeseen situation, tell your creditors about it. They may then prove to be quite lenient, to the point of reducing temporarily your obligations towards them.<\/strong> Even though such an alternative does not always work, it\u2019s worth a try.<\/li>\n

    2. \n

      Consumer proposal<\/h3>\n

      Regulated by the Bankruptcy and Insolvency Act\u00a0(BIA), the consumer proposal protects you from any type of seizure<\/strong>. Furthermore, it suspends automatically all current seizure procedures.
      \nThe consumer proposal also offers many other benefits, including :<\/p>\n