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What is the legal limit The Student loan people can garnish from your income tax refund?

Please only answer if you do know the right answer…….I recently had the Canadian student loan people garnish 80% of my tax return–Can they legally take that much?

Of course they can. That is obvious from the fact they DID. CRA doesn’t just let somebody garnishee amounts becuase they says so, they have to provide the proper legal order.

They can take all of it. They can’t take some sorts of government payments (or only a designated amount) like EI etc, but an income tax return is considered ‘found money’, it’s excess to your normal income costs, so they can take it all if they need to.

One Response to “What is the legal limit The Student loan people can garnish from your income tax refund?”

  1. Of course they can. That is obvious from the fact they DID. CRA doesn’t just let somebody garnishee amounts becuase they says so, they have to provide the proper legal order.

    They can take all of it. They can’t take some sorts of government payments (or only a designated amount) like EI etc, but an income tax return is considered ‘found money’, it’s excess to your normal income costs, so they can take it all if they need to.
    References :

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