Garnishee Regulations: What They Mean for Debtors and Creditors

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The Garnishee Regulations (EC2023-84) set out the procedures for enforcing court judgments through garnishment as stipulated in the Garnishee Act. These regulations outline the responsibilities of the Prothonotary (a judicial officer) in administering the garnishment of wages and other payments owed by individuals under court judgments.

Key elements include:

    • The regulations establish critical definitions, such as “Act,” which refers to the Garnishee Act, and “court,” which denotes the Supreme Court. They also specify important roles, including the “Director of Social Assistance” and “medical practitioner.”
    • Upon application by a judgment creditor, the Prothonotary is responsible for notifying the debtor to attend an examination.
    • During the examination, the Prothonotary collects comprehensive information from the debtor, including details on dependents, living expenses, health costs, and sources of income. This thorough assessment is essential for understanding the debtor’s financial circumstances.
    • Should the debtor fail to appear for the examination or provide accurate information, the Prothonotary will report this non-compliance to the creditor. The creditor may then initiate contempt proceedings or seek alternative evidence to obtain the necessary information.
    • The Prothonotary determines the portion of the debtor’s wages that can be exempt from garnishment based on financial needs and social assistance criteria. This process involves consulting with the Director of Social Assistance to ensure precise calculations.
    • Upon determining the exempt amount, the Prothonotary must inform both the creditor and the debtor. A certificate from the Prothonotary is required to validate the garnishment order.
    • Either the debtor or creditor may appeal the Prothonotary’s exemption calculation to the court, which holds the authority to confirm or adjust the exemption amount.

In summary, these regulations are designed to ensure a transparent and equitable process for garnishing wages, taking into account the debtor’s financial obligations and needs.

Source: Prince Edward Island (EC2023-84), February 14, 2023