Mod 8

Question 1

What is garnishment?

Answer 1

the legal way for an unsecured creditor to take money out of the debtors account or take a portion of their pay cheque

Question 2

What is a garnishee?

Answer 2

any legal entity who owes money to the debtor i.e. banks and employers

Question 3

What two things will be prepared after the Garnishee Summons has been filed?

Answer 3

-a cheque payable to the Garnishee for $25
-A service letter

Question 4

How much is the compensation fee that must be paid to each Garnishee upon being served the Garnishee Summons?

Answer 4

$25

Question 5

What three things are served on the Garnishee?

Answer 5

-Garnishee Summons
-cheque
-service letter

Question 6

How long does the Garnishee have to respond to the Garnishee Summons?

Answer 6

15 days

Question 7

When must a Garnishee Summons for employment earnings be renewed?

Answer 7

at least 60 days before the expiry

Question 8

What document is used to renew a Garnishee Summons?

Answer 8

Garnishee Summons Renewal Statement

Question 9

When must the Clerk of the Court distribute the garnished funds?

Answer 9

within 15 days of receiving the funds

Question 10

What purpose does the Garnishee Summons serve?

Answer 10

it officially instructs the garnishee to remit money it owes to the debtor directly to the Clerk of the Court to satisfy a debt owed to an unsecured creditor

Question 11

What are the 3 types of garnishment?

Answer 11

-employment earnings
-deposit accounts
-monies owing from other sources

Question 12

What’s the difference between a current obligation and a future obligation?

Answer 12

-current obligation represents a sum of money the Garnishee owes the debtor on the day the Garnishee Summons is served
-a future obligation represents a sum of money the Garnishee owes the debtor at some date in the future