Child Support Deductions: Wage Garnishment
The FRO has the right to deduct a MAXIMUM of 50% of net pay for child support arrears. Many support payors mistakenly believe there are no options available to them and that there is nothing they can do to reduce child support deductions. They can't budget or maintain basic living expenses and get frustrated and quit a good job or get into extreme credit difficulty as a result. There are options available to you if you are having problems paying for child support and wage garnishment is something you are worried about.
Reducing support deductions: options available to support payors
The following options are available to people struggling financially because of high child support deductions and wage garnishment:
- Court Motion - This is easier than you think! Most judges recognize that the average household cannot sustain itself on 50% of net pay. The law that governs FRO authorizes the Court to reduce the amount that is being deducted for child support arrears thereby reducing the 50% wage garnishment to a lower level. However, the Court cannot reduce the amount of the deduction to an amount less than the current ongoing monthly support amount. [To change the ongoing support you have to bring a Motion to Change (Vary) and serve your ex].
A simple example is as follows:
Net monthly pay (after statutory deductions) = $3,000.00
50% to FRO = $1,500.00
Monthly Support Payment - $680.00
Amount applied to Arrears = $820.00The Court can reduce the $820.00 amount to a more manageable level.
You can bring a motion in the Court where you reside (Ontario Court of Justice if your Order was made in that Court or if your support obligation arises from a Separation Agreement that is payable through FRO; Superior Court if your support Order was made in Superior Court). You don't have to serve your ex - just FRO.
You bring the motion on short notice (4 days). You ask the Court to suspend the arrears portion of the Support Deduction Notice or in the alternative limit the deduction on account of arrears to a specified amount that you can handle.
You will have to file a sworn Financial Statement with a pay stub showing your YTD earnings and child support deductions and the past three years Tax Assessments. The Financial Statement should carefully set out your monthly expenses and increased indebtedness arising out of the 50% wage garnishment.
You should file a short Affidavit indicating that you are having difficulty maintaining the basic expenses of your household with the 50% support deductions and are seeking a reduction to allow for a more manageable repayment.
You should attach copies of your current bills, bank statements etc. If you are in a second family situation ensure that you detail the costs related to your 2nd family unit and the details of your current partner's income, if any.
To improve your chances for obtaining a reduction of the child support deductions, you should briefly indicate the reasons why you fell behind in your payments (lay off, downsizing etc.) If you have unsuccessfully attempted to borrow the funds to discharge the arrears, attach a copy of your rejection letter or give details of such efforts.
Use this option to get quick relief. Even if you fell behind due to your own irresponsibility you may be able to invoke the Court's discretion to give you some relief based on your candid and forthright attempt to set the matter right and repay these arrears in an orderly way.
- Borrow the money to pay off the arrears portion. The monthly payment with interest will likely be a lot less than the amount being deducted for arrears.
- Make a payment plan with FRO.The FRO staff are authorized to negotiate payment plans just like you would in a court motion so the arrears portion of the 50% wage garnishment can be reduced.
They will want the same material as you would provide to the court. The problem here is not knowing who you are dealing with and losing control of the timeline. You could fax all the material into FRO with one of their repayment forms and never know when you will hear from them. In a Court Motion you may wait around all day at Court but at least you have a day of reckoning and FRO has to answer to the Court. This payment plan option is also available when a First Notice of Intention to Suspend a Driver's Licence is received. The repayment plan proposal and supporting documentation should have the FRO Case Number written on every page and can be faxed to 416-240-2407. Keep copies of everything including your fax transmission sheet and follow up daily by fax. If you don't get a timely or satisfactory response bring the Motion (Option #1) and ask for costs against FRO based on its failure to respond to your repayment proposal.
- If you can't afford the current monthly support payment (or if that payment alone is close to 50%) you will need to bring a Motion to Change the monthly payment (and arrears). You will likely need a lawyer for this.
If you are getting behind because of a large wage garnishment due to high child support deductions, we recommend that you ask for legal advice immediately so that you can learn about your options and take the appropriate steps as necessary.