Garnishment is a court-authorized collection tool that lets a judgment creditor intercept money owed to the debtor by a third party (the “garnishee”) and redirect it to satisfy a judgment. In Ontario, garnishment is governed mainly by Rule 60.08 of the Rules of Civil Procedure (Superior Court) and Rule 20.08 of the Small Claims Court Rules. A garnishment remains in force for six years from issue and can be renewed for further six-year periods.

Certain incomes (for example, wages) have statutory exemptions. In Ontario, 80% of an employee’s wages are exempt from seizure or garnishment, and a court can vary that exemption up or down in appropriate cases. Support orders are a special case and can have different limits.

A. Superior Court of Justice (Rule 60.08)

• Paperwork: Prepare and file a Notice of Garnishment with the court, supported by the required affidavit stating the judgment details, amount owing, and why the named garnishee owes (or will owe) the debtor.

• Serve: Serve the notice on the garnishee and then on the debtor.

• Garnishee’s statement & payment: The garnishee must file a statement and pay as directed (typically to the court), continuing while the notice is in force, subject to exemptions and priorities.

• Garnishee hearing (optional): Any party can bring a motion/hearing to resolve disputes about liability, exemptions, priorities, or procedure.

• Duration: a Superior Court Notice of Garnishment stays in force for six years from issuance and each renewal adds another six years.

B. Small Claims Court (Rule 20.08)

• Forms: File Form 20E (Notice of Garnishment) with an Affidavit for Enforcement Request (Form 20P).

• Serve the garnishee (and then the debtor). The garnishee has 10 days after service (or 10 days after the debt becomes payable, whichever is later) to pay the clerk of the court or respond.

• Garnishee hearing: Any party or interested person can bring Form 20Q for a garnishment hearing to resolve issues.

• Renewals: Small Claims has a Notice of Renewal of Garnishment (Form 20E.1).

A. Bank accounts (deposits)

• Good target if you know the debtor’s bank and branch/legal service address. Serve the bank properly under the Rules.

• Joint accounts: You can only reach the debtor’s interest; co-owners may contest.

• Timing: For lump-sum balances, you’re aiming at funds owing at service and that become payable afterward (subject to the Rules/case law).

• Exempt funds: Some government benefits (e.g., CPP, OAS, EI) are generally protected from garnishment by ordinary creditors while in government hands. Complexities arise once funds are deposited into a mixed account—courts look at tracing and equities. Government creditors (like CRA) have separate, stronger powers.

B. Wages / salary (employment income)

• Ontario’s Wages Act protects 80% of wages as a default exemption; the court can increase or decrease that exemption on motion, considering the circumstances.

• Support enforcement follows different limits and priority rules.

• How it’s collected: The employer remits the non-exempt portion directly to the court (or as ordered) each pay period while the notice is in force.

• Our firm provides support to the employer garnishee, which increases our success rate in collecting from the employer.

C. Commissions, bonuses & variable pay

• Commissions and non-discretionary bonuses paid to employees are treated as “wages” under employment standards policies, so the same 80% exemption framework generally applies (unless a court varies it, or different limits apply for support).

D. Independent contractors / gig workers

• If the debtor is an independent contractor, payments owed by the “client” are accounts payable (a debt) rather than “wages.”

• The Wages Act exemption may not apply; you may garnish a larger portion of those payable amounts. (Courts look at the true relationship—employee vs contractor.)

E. Factoring companies & assigned receivables

• If the debtor has assigned receivables to a factor, ask: does the debtor still have any right to proceeds (e.g., reserve, holdback, rebates)?

• If the factor owes money to the debtor, that debt can be garnished.

• If it was a true sale with nothing further owing to the debtor, garnishment may yield little—consider fraudulent conveyance/preference strategies instead.

F. Payment processors & platforms (e.g., Stripe/PayPal, marketplaces, rideshare apps)

• These entities often owe periodic remittances to the account holder.

• Properly served, you can garnish amounts due to the debtor under the platform agreement.

• Watch for set-offs, reserves, rolling holds, chargebacks, and foreign governing law.

G. Commercial tenants (rent)

• If your debtor is a landlord, rent owed by a tenant is garnishable.

• Serve the tenant as a garnishee to intercept rent payments.

H. Insurers & insurance proceeds

• Debt obligations under a policy (e.g., matured proceeds payable to the debtor) can be garnished. Liability settlements not yet fixed or subject to conditions may be trickier.

1. Wages: 80% exempt by default; courts can increase or decrease the exempt percentage on motion. Support claims operate under different limits and priority rules.

2. Government Benefits: CPP, OAS, EI and similar benefits are protected from ordinary private-creditor garnishment (subject to tracing/deposit issues and statutory exceptions).

3. Support First: Under Ontario’s enforcement and creditors’ relief framework, support arrears have priority over ordinary judgment debts.

• After service, a garnishee must respond and pay as prescribed (e.g., in Small Claims, within 10 days to the clerk).

• If a garnishee ignores a valid notice, the creditor can seek judgment against the garnishee (often up to the notice amount).

• Disputes (e.g., no debt owing, set-off, exemptions) are resolved at a garnishee hearing.

• Pick the right target first: If you already know employer or bank details, garnishment is often more effective (and faster) than examinations.

• Mind the pay cycle: For wages, service before payroll runs. For banks, consider account activity and minimum balances.

• Avoid “double-dipping” optics: If wages are being garnished and immediately deposited into the same bank account you’re also garnishing, expect equitable pushback. (Small Claims guidance and case law recognize the court’s discretion to prevent unfairness.)

• Use renewals: Don’t let notices expire—renew to preserve leverage.

• Expect platform pushback: With processors and marketplaces, be ready to address contractual set-offs and foreign law clauses at a hearing.

• Combine tools: If garnishment under-collects, layer examinations in aid of execution, writs, preservation, or fraudulent conveyance remedies.

Superior Court (Rule 60.08)

• Draft Notice of Garnishment + affidavit

• Issue & serve garnishee, then serve debtor

• Track payments and court accounting

• Consider hearing if disputed; calendar six-year renewal

Small Claims Court (Rule 20.08)

• Form 20E (Notice of Garnishment) + Form 20P (affidavit)

• Serve garnishee (then debtor)

• 10-day payment/response window (bank/employer)

• Use Form 20Q (Garnishment Hearing) if needed

• Use Form 20E.1 for renewal

How long does a garnishment last?

Six years from issue, renewable in further six-year periods.

How much of wages can be taken?

By default up to 20% (because 80% is exempt). The court may increase/decrease the exemption; support enforcement and government creditors follow different rules.

Can I garnish CPP/OAS/ODSP?

Ordinary private creditors generally cannot garnish those benefits; government collectors and support enforcement can, under their own statutes/tools.

What if the garnishee ignores the notice?

You can seek judgment against the garnishee (subject to defenses). Use a garnishee hearing to address non-compliance or disputes.

• Rules of Civil Procedure – Rule 60.08 (Garnishment) – six-year force & renewal.

• Small Claims Court – Rule 20.08; Forms 20E, 20P, 20Q, 20E.1 (renewal).

• Wages Act (Ontario) – 80% wage exemption; court variation powers.

• FRO (Support enforcement & priority).

• CRA collections (Requirements to Pay) – government garnishment powers.