Disability Pension

Most pensions cannot be garnished or seized by creditors. One exception is if your pension is a CPP pension and if you owe money to the federal government, they can withhold some or all of your pension and apply it to your debt. However, the government tends to use this right quite sparingly – i.e., they typically won’t do it if it’s going to cause you financial hardship. It’s unusual for a creditor to attempt to garnish a pension. If you would like to provide more detail on what this creditor is doing or saying, we can probably clarify things for you. Yes, you can do a bankruptcy and this will normally stop a garnishment immediately; however, if your total debt is only $4,000, you should probably consider some of the other options first. To give you any helpful information beyond that, we would need to know a bit more about your financial situation.