Wage Garnishment After an LTB Order: How Ontario Landlords Collect
Winning an LTB order for unpaid rent is step one. Getting paid is a separate process, and many landlords never see the money. Wage and bank garnishment are the most effective tools, and here is how they work.
Key points
- An LTB order for money doesn’t collect itself. You have to enforce it.
- You file the LTB order with the Small Claims Court, which gives you access to garnishment.
- Wage garnishment takes a portion of each paycheque. The debtor keeps a protected amount to live on.
- Bank garnishment captures the money in the account when the notice is served.
Before you start a garnishment, ask whether it’s worth it. Most of the time, the amount owed doesn’t justify the cost of collecting. Book a free 20-minute call and we’ll tell you honestly whether yours does.
Book a free 20-minute call →Winning an LTB order for unpaid rent or compensation is step one. Collecting the money is a different process. Many landlords with orders never get paid. Garnishment is one of the most effective ways to enforce an LTB order.
What garnishment is
Garnishment is a court process that directs money owed to the debtor, such as wages or a bank balance, to be paid toward the debt instead. To use it, the LTB order needs to be enforced through the court.
Filing the LTB order with the court
- Get a certified copy of the LTB order.
- File it with the Small Claims Court in the right location, or the Superior Court for larger amounts.
- Find out where the debtor works or banks.
- File for garnishment and serve the Notice of Garnishment on the employer or bank.
Court fees apply. Reasonable enforcement costs can usually be added to the amount owed.
Have an LTB order but no payment? We help Ontario landlords collect.
Book a free 20-minute call →How wage garnishment works
Once served, the employer must deduct a portion of the debtor’s pay each pay period and send it to the court, which pays you. The debtor keeps a protected portion of their wages to live on under Ontario’s Wages Act. The rest goes toward the debt until it is paid or the garnishment ends.
Bank account garnishment
Garnishment can also target a bank account. The bank must pay any funds in the account, up to the amount owed. Unlike wage garnishment, it captures a lump sum at the time it is served, not ongoing payments.
When garnishment won’t work
- The former tenant is unemployed or paid in cash.
- You don’t know where they work or bank.
- Their income is below the protected amount.
In these cases, consider whether the debt is worth pursuing now, or wait until their situation changes. Court orders can be enforced for years.
Frequently asked questions
Can a landlord garnish wages in Ontario?
Yes. After getting an LTB order for money, the landlord can file it with the Small Claims Court and use garnishment to collect from the former tenant’s wages or bank account.
How much of a paycheque can be garnished?
Ontario’s Wages Act protects a portion of the debtor’s wages. The remaining amount can be garnished until the debt is paid.
Do I need to know where the tenant works?
Yes. The Notice of Garnishment is served on the employer or bank, so you need to know who they are.
Can I add the court fees to what the tenant owes?
Reasonable enforcement costs can usually be added to the amount owed.
What if the former tenant has no job or assets?
Garnishment may not work right away. Court orders can be enforced for years, so you can try again if their situation changes.
About Bita Di Lisi
Bita is the lead paralegal at Stonegate Legal Services and is licensed by the Law Society of Ontario. She represents Ontario landlords at the Landlord and Tenant Board and teaches landlords and investors about notices, LTB timelines and the mistakes that cost months.
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