25% garnishee salary cap
The government plans to introduce a salary cap on the percentage that can be ‘attached’ by creditors using emolument attachment orders to collect debt, notes a BusinessLIVE report. The Courts of Law Amendment Bill proposes that no more than 25% of a debtor's salary can be attached, no matter how many attachment orders they may have against them.
The Bill, which seeks to address abuses in the civil debt recovery system has been referred to the National Council of Provinces before being sent to the President for approval.
It gives effect to a Constitutional Court judgment in favour of the Stellenbosch University Legal Aid Clinic and others. That case stemmed from action taken by the owner of DeMorgenzon wine estate, Wendy Appelbaum, after discovering that up to 80% was being deducted from her employees' salaries to pay debts to credit providers.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
