Winning a Small Claims Court judgment in Ontario is only half the battle: actually getting paid is the real challenge. If the debtor refuses to pay voluntarily, wage garnishment is one of the most effective ways to collect what you're owed.
This guide explains how to garnish wages after a Small Claims Court judgment, the legal steps involved, and what to do if the debtor tries to avoid payment.
1. What Is Wage Garnishment?
Wage garnishment is a legal process that allows a creditor (the person owed money) to collect debt directly from the debtor’s wages.
How it works:
- A portion of the debtor’s paycheck is withheld by their employer.
- The employer pays the deducted amount into court, and the clerk pays it out to you.
- This continues until the debt is fully paid or the notice of garnishment expires.
You cannot garnish wages without a court order. The process must go through Small Claims Court.
For more, check Ontario Small Claims Court Rules.
2. When Can You Garnish Wages?
Before you can garnish wages, you must have a valid court judgment.
Requirements to start wage garnishment:
- You won the case in Small Claims Court, and the court issued a judgment for money owed.
- The debtor has not paid voluntarily.
- You know where the debtor works (you need employer details to proceed).
If you don’t know the debtor’s employer, you may need a Judgment Debtor Examination to find out.
For more, check How to Enforce a Small Claims Judgment.
3. Steps to Garnish Wages After a Judgment
Follow these legal steps to garnish the debtor’s wages:
Step 1: Issue a Notice of Default
- Before garnishing wages, send a written request to the debtor demanding payment.
- If they ignore it, proceed with garnishment.
Step 2: Complete a Garnishment Application
- File a Notice of Garnishment (Form 20E) with the Small Claims Court.
- Provide details of the judgment, the amount owed, and the debtor’s employer.
- Pay the court fee to issue the notice of garnishment ($144).
Step 3: Serve the Notice of Garnishment
- The clerk issues the Notice of Garnishment.
- Serve the notice on:The debtor’s employer (who will deduct wages).The debtor, so they are aware of the garnishment.
Step 4: Employer Begins Wage Deductions
- The employer withholds a percentage of the debtor’s paycheck.
- Funds are paid into court, and the clerk pays them out to you.
- Garnishment continues until the debt is paid in full.
Properly filing the Notice of Garnishment ensures timely payments.
For legal forms, check Ontario Small Claims Court Forms.
4. How Much Can Be Garnished From Wages?
Ontario law limits how much can be deducted from a debtor’s wages.
Standard garnishment limit:
- Up to 20% of net wages (after taxes and deductions) can be garnished.
- If the debtor has other garnishments (e.g., child support), wage garnishment may be reduced.
You cannot take more than the legal limit, even if the debtor owes more.
For more, check Ontario Wage Garnishment Rules.
5. What If the Debtor Changes Jobs or Tries to Avoid Payment?
Some debtors will try to avoid garnishment. Here’s what to do if that happens.
If the debtor quits or changes jobs:
- You must find their new employer before filing a new Notice of Garnishment.
- Conduct a Judgment Debtor Examination to obtain updated employment details.
If the debtor has no job:
- Wage garnishment won’t work if they have no income.
- Consider garnishing bank accounts or seizing assets instead.
Tracking the debtor’s financial situation ensures successful collection.
For more, check How to Conduct a Judgment Debtor Examination.
6. Alternatives to Wage Garnishment
If wage garnishment isn’t an option, there are other ways to collect your money.
Other collection methods:
- Bank account garnishment: Freeze and seize funds from the debtor’s bank.
- Seizing personal property: Obtain a court order to seize assets.
- Placing a lien on property: Secure your debt against the debtor’s home or car.
- Negotiating a payment plan: Some debtors prefer to pay in installments.
A combination of enforcement methods increases your chances of getting paid.
For more, check Other Ways to Enforce a Small Claims Judgment.
Final Thoughts: Wage Garnishment Is a Powerful Collection Tool
Key Takeaways:
- Wage garnishment allows creditors to collect money directly from a debtor’s paycheck.
- You must have a valid Small Claims Court judgment before applying for garnishment.
- Only up to 20% of the debtor’s net wages can be garnished.
- If the debtor changes jobs, additional steps are needed to enforce payment.
- Other collection options include bank garnishment, asset seizure, or liens.
Need help enforcing a judgment? Contact Carson Frankum for debt collection assistance.
A notice of garnishment lasts six years from the day it is issued; see how to keep a Small Claims judgment enforceable for the renewal steps and fees. If you are the one being garnished and cannot pay the full amount at once, read how to pay a Small Claims judgment in instalments and when a payment order stops other enforcement. Wages are only one protected category; see what property is exempt from seizure in Ontario for the limits on furniture, tools, vehicles and home equity.
