Hi I live in ontario canada. I am just wondering..
If you are a full time employee. Can they garnish your wages or will they for that matter.. if you do plan on going bankrupt. And how long does it take to be able to take out a load through a bad/good credit place for ex. A car loan??

Any decent credit place would want to wait years, maybe 6-7 maybe more. There are places that will finance you with bad credit but the payments would be outrageous.

Have you tried mediation to resolve your debts, it's much better than going bankrupt. When you go bankrupt your debts disappear, except student loans and other government loans so no they won't garnish your wages after the bankruptcy is over but there is some sort of final settlement made with the companies you owe money to, I'm not sure how that works.

Yes but do they garnish wages if you go bankrupt?? //

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Originally Posted by blnchick

yes but do they garnish wages if you go bankrupt??????????????????????????//

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No they don't.

If you declare bankruptcy, then all of your debts are erased.

Therefore, since you don’t owe them the money anymore, they can’t garnish your money, since you can only garnish someone’s pay cheque if you owe them money.

Bankruptcy creates an immediate Stay of Proceedings. The Discharge makes the Stay permanent. No garnishment.

A follow-up to my previous answer and a comment on Captain Forest. Bankruptcy does not "erase" a debt. Bankruptcy "erases" the bankrupt's responsibility to pay a debt include in their bankruptcy. It is importatnt to know the difference. If A and B owe a debt joinlty, A's bankruptcy does not erase the debt. All it does is make A no longer responsible for the payment of that debt. B remains responsible for it. The debt is not erased as far as B is concerned. B could be a friend, a spouse, a child, an employer and are still on the hook for the entire debt.

In reference to Iknowalotofstuff's comments.

Yes, the bankruptcy does not “erase” the debt.

But we (the OP) is “A” in this case. A will no longer be responsible for this debt in any way, and that is the focus.

Yes B is still responsible, but we are not required to consider B's position.

Also, the OP gave no mention of a secondary person. And furthermore, they were just concerned about themselves, A, and that was all.

As far as a car loan... my husband went for an interview for a dealership to sell cars and they told him that (as a dealership,) they purchase lists from an agency for people that are coming due for their bankruptcies soon or are done with bankruptcies and offer them 0% financing to purchase a new vehicle form them. Don't sound too bad eh!

Once you declare bankruptcy the trustee handles all wage garnishments. It is important if you take this step that you declare each debt that you have. The trustee will let you know when you can take out any form of credit. Be advised though it will stay on your credit history for years, and will impede any credit applications for credit cards. There are many companies out there that will give you a loan for a car for "undischarged bankrupts" they are very costly. You are better off to purchase a used car for this purpose. Hope that helps you!