The only way to put a stay on a garnishee is to declare yourself or your company insolvent and enter into a formal insolvency arrangement. For an individual this would take the form of either bankruptcy, or a Personal Insolvency Agreement. For a company, the garnishee notice can be stopped if the company appoints a voluntary administrator.
If you have received a garnishee order and are having money taken out of your wages or your company’s bank account, you need to seek professional advice as soon as possible. It may be possible to come to a formal arrangement with the ATO that will cancel out the garnishee you have received.
If you are the director of a company, you need to act much more quickly. At the first sign of potential insolvency, call an insolvency expert to discuss your options. If the ATO issues a garnishee notice before you have attended to your company’s situation, you will not be able to put a stop to it, and the resulting effects could permanently damage your business.
To find out more about garnishee notices and how ISA can help you, contact us on our 24/7 hotline on 1800 003 883.