Winning an LTB order for unpaid rent or compensation is step one. Collecting the money is a different process entirely. Many landlords who receive orders never see the payment. Wage garnishment is one of the most effective tools available to enforce an LTB order — here is how it works.
What Wage Garnishment Is
Wage garnishment is a legal process that directs a portion of a debtor’s employment income to be paid directly to the creditor. In Ontario, garnishment of wages is processed through the Court Enforcement Office (formerly Sheriff). It requires a court-recognized order — which an LTB order can be converted to.
Converting an LTB Order to a Court Order
An LTB monetary order can be filed with the Small Claims Court or the Superior Court to be recognized as a court order, which then gives you access to enforcement tools including garnishment. The process involves filing the LTB order with the court and requesting enforcement. Fees apply but can be added to the amount owed.
How Garnishment Works
Once a garnishment order is in place, the employer is served with a Notice of Garnishment and is legally required to deduct a portion of the debtor’s pay each pay period and remit it to the court, which then pays the creditor. The debtor keeps enough income to live — there are exemptions under Ontario’s Wages Act — but the remainder goes toward the debt.
Bank Account Garnishment
Garnishment can also target bank accounts. A Notice of Garnishment served on a financial institution directs the bank to pay any funds in the account up to the amount of the debt. Unlike wage garnishment, bank garnishment captures a lump sum at the moment of service rather than recurring payments.
When Garnishment Is Not Possible
If the former tenant is unemployed, self-employed in cash work, or has no accessible assets, garnishment may not be effective. In these situations, you may need to consider whether the debt is worth pursuing or wait until the debtor’s situation changes.
What Comes Next
Stonegate assists Ontario landlords with post-order enforcement and garnishment proceedings. Book a free call at https://calendly.com/stonegatelegalservices/20min.
▶ Watch: Collecting Arrears After an LTB Order: Landlord’s Guide to the Process
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