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FRO & Federal Garnishement

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  • FRO & Federal Garnishement

    FRO has issued a federal garnishement for child support yesterday, case worker indicated that it can take up to 45 days or maybe sooner. My ex is on EI (intentionally unemployed) and is in arrears for child support

    Has anyone experienced this?

  • #2
    My ex has a federal garnishment (among other garnishments). Tax return refunds, GST/HST rebates are sent directly to MEP. Once ex collects CPP 50% will go to MEP as well. I believe a portion of EI will be redirected as well.

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    • #3
      I gather this is a long process then? When does FRO release the funds to the recipient?

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      • #4
        FRO releases any money received within 48 hours, often sooner.

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        • #5
          Can FRO get into his locked in RRSPs for arrears purposes?

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          • #6
            Originally posted by DAHP_01_05_12 View Post
            FRO has issued a federal garnishement for child support yesterday, case worker indicated that it can take up to 45 days or maybe sooner. My ex is on EI (intentionally unemployed) and is in arrears for child support

            Has anyone experienced this?
            EI doesn't last forever. It eventually runs out. Then how will this person leave. There generally isn't a conspiracy to not work by parents and go on EI to pay less CS. CS is proportional to income and it is better to be employed properly and pay CS rather than on EI.

            Good Luck!
            Tayken

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            • #7
              Originally posted by DAHP_01_05_12 View Post
              Can FRO get into his locked in RRSPs for arrears purposes?
              No. RRSPs are not accessible to the FRO unless the RRSP holder willingly withdraws from them which creates "income" when you do.

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              • #8
                In the event that his EI runs out....then what?? Suspensions of drivers license? Garnishement of bank accounts? Will this affect his common law spouse if they have shared bank accounts?

                Once he returns to work, which I know he will, FRO will garnish his wages accordingly correct?

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                • #9
                  Shared bank accounts can be seized but FRO would have to get a court order to do that. I believe if 2 people's names are on the bank account they can take in proportion (50%) of what is in the account. If there are 3 people in the account they would take 1/3 and so on.

                  All the collection actions should be clearly outlined on the FRO website. You might have to stay on top of your caseworker and I've heard FRO is terrible at returning calls.

                  Good luck!

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                  • #10
                    how do you expect him to pay if he doesn't earn anything? Would suspending his driver's license hlep him find work? Do you expect his common law spouse to pay child support on his behalf? If you do, why do you think that she should support your kids?

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                    • #11
                      Originally posted by DAHP_01_05_12 View Post
                      FRO has issued a federal garnishement for child support yesterday, case worker indicated that it can take up to 45 days or maybe sooner. My ex is on EI (intentionally unemployed) and is in arrears for child support

                      Has anyone experienced this?
                      I've had a lot of experience with the EI puzzle through my work.

                      EI will be garnished 50% of net (there's a 10% tax taken off of EI). Arrears will continue to accumulate unless he brings a motion to reduce CS based on his EI income. Which, if he's on for any length of time, he may just do.

                      EI programs and services offered through Service Canada/Service Ontario will not be available to anyone with CS arrears. This arrears balance would have to be paid in order for them to be eligible for funding for return to school purposes.

                      EI doesn't last forever, but with educational programs etc, it can last a long time. As long as he is in arrears, he won't be eligible for those programs.

                      With a federal garnishment, all income tax returns, GST credits, etc will also be garnished at 50%.

                      I wouldn't expect it to take 45 days. A regular garnishment on payroll may take that long, but EI should be quicker. If they have only just filed for EI, there is a two week wait period on all claims, and it may take 6 weeks for the first payment from EI to be generated.

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                      • #12
                        From our experience it takes many attempts from FRO to contact the payee and ask that they respond and arrange an affordable payment plan. If they do not respond then they proceed with enforcement actions.

                        Usually they report to,the credit bureau first, this will trigger some calls from a collection agency who will keep the report on record which in turns affects your credit rating. If the payee still ignores requests to set up either payment plans or arrears payment plans then they will proceed to the next enforcement strategy. It could be suspension of licence or proceeding with garnishing. They can take any pension plan that you and cash it in to get the money. They can put a lien on any property you own to avoid the assets being sold without their knowledge.

                        The underlying factor is the payee simply has to respond and explain their financial situation and put a workable plan together with the intent to pay all amounts owing.

                        Its not rocket science. Do not ignore the requests and be honest and they will gladly work with you. IMO payees who get into the nasty enforcement methods of FRO do so because they believed if they just ignored the situation it will just go away! Too bad.

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                        • #13
                          Originally posted by Toutou View Post
                          how do you expect him to pay if he doesn't earn anything? Would suspending his driver's license hlep him find work? Do you expect his common law spouse to pay child support on his behalf? If you do, why do you think that she should support your kids?
                          The funny thing is that he recently became unemployed but arrears are from while he was employed (last two years) where I would get child support for my kids from his commonlaw spouse (she wrote the cheques and signed) and in some cases his parents. Now he's recently on EI for approx 3 months now and I expect he will be returning to work soon.

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                          • #14
                            Mission accomplished by the FRO, it's been exactly 45 days since the federal garnishement has been issued, I got confirmation that 50% of his EI has been deposited into my account today.

                            My kids deserve it!

                            Comment

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