Glossary
Garnishment
GeneralA legal order requiring your employer to send part of your paycheque directly to a creditor. Garnishment typically happens after a court judgment for unpaid debt. Certain income sources like EI and social assistance have partial protection.
Related terms
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Default
Failing to repay a debt according to the agreed terms. Defaulting damages your credit score, may trigger collection calls, and can lead to legal action. On-reserve, Section 89 provides some protection against seizure of property.
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Debt
Money you owe to someone else, whether a bank, credit card company, family member, or other lender. Not all debt is harmful — a mortgage or student loan can build toward something — but high-interest debt like credit cards can trap you.