Garnishing Wages or a Bank Account in Ontario After a Judgment

You have a judgment from an Ontario court. The debtor is not paying voluntarily. Garnishment is often the most direct way to collect — it redirects money the debtor is already receiving from a bank or employer straight to you.

This article explains how garnishing wages and garnishing a bank account work in Ontario, what forms are needed, who gets served, how much can be taken, and what to do when garnishment hits obstacles.

What Is Garnishment?

Garnishment is a legal process that compels a third party — called the garnishee — to redirect money they owe the judgment debtor to the judgment creditor instead. The garnishee is not the person who lost in court; they are simply someone who holds or owes money that belongs to the debtor.

Common garnishees:

• The debtor's bank (holds funds in the debtor's account)
• The debtor's employer (owes the debtor wages)
• A client who owes the debtor money for services rendered

To use garnishment, you must already have a court judgment. You cannot garnish in anticipation of winning.

Step 1 — Obtain the Necessary Court Documents

In Small Claims Court, you obtain a Notice of Garnishment by filing a request with the court clerk. You must provide:

• The judgment amount (principal + accrued interest)
• The garnishee's name and address (the bank branch or the employer)
• Any applicable co-owner information if joint accounts may be involved

The clerk issues the Notice of Garnishment once the paperwork is in order. There is a filing fee — verify the current amount with the court.

In Superior Court, the document and process differ slightly; speak with a lawyer or review the Rules of Civil Procedure.

Step 2 — Serve the Notice of Garnishment

You must serve the Notice of Garnishment on:

1. The garnishee (the bank branch or employer) — this triggers their obligation to pay
2. The judgment debtor — they must receive notice that garnishment is in effect

Service must be done in the method required by the court rules — typically personal service or service by mail with an affidavit of service filed with the court. Improper service can render the garnishment ineffective.

Bank Account Garnishment

Once a bank receives a Notice of Garnishment, it must:

• Freeze the funds in the debtor's account up to the amount owed
• Pay those funds into court (which then pays you) within the time set by the rules

Key practical points:

• The bank garnishment captures the balance on hand at the moment the notice is served. If the account is empty that day, you collect nothing, and the notice does not capture future deposits.
• You may need to re-serve the Notice periodically to capture ongoing deposits, subject to court rules.
• Joint accounts are more complex — a co-owner of the account may dispute the garnishment, and only the debtor's share is subject to seizure.
• Registered accounts (such as RRSPs and TFSAs, depending on the circumstances) may have protections — verify with a lawyer.

Wage Garnishment

Once an employer receives a Notice of Garnishment, they must deduct a portion of each paycheque and remit it to the court, which forwards it to you.

How Much of Wages Can Be Garnished?

Ontario law protects a portion of a debtor's wages so they retain enough to meet basic living needs. As of writing, a portion of net wages is exempt from garnishment — verify the current exemption amount with the court or a lawyer, as these figures can change. The effect is that garnishment of wages is a gradual process; you receive a share of each paycheque over time rather than the full amount at once.

When Employment Ends

If the debtor leaves or loses their job, wage garnishment stops. You would need to re-serve a new Notice on any new employer — which requires knowing where the debtor works. If you do not know, a judgment debtor examination (also called an examination in aid of execution) can compel the debtor to disclose their employer under oath.

What Happens to the Garnishee?

A garnishee who ignores or improperly handles a Notice of Garnishment can become personally liable for the amount that should have been paid. This creates a strong incentive for compliance. In practice, banks and employers almost always comply promptly.

A garnishee can also file a Garnishee's Statement with the court if they dispute that they owe anything to the debtor (for example, if the account has been closed or the employment has ended).

When the Debtor Disputes the Garnishment

A judgment debtor can bring a motion to dispute the garnishment if they believe:

• The amounts are calculated incorrectly
• They have already paid the judgment
• Exempt property has been captured

The burden is on the debtor to establish grounds for a dispute. The court resolves it by motion.

What If You Do Not Know Where the Debtor Banks or Works?

This is a common obstacle. Options:

1. Judgment debtor examination — the debtor is legally required to answer questions about their finances, including employer and bank details, under oath
2. Credit bureau or skip-trace search — some information services can locate employment and banking, subject to applicable privacy laws

Frequently asked questions