Enrollment or service agreement to assist people involved in the financial industry. Credit and Payments by Astro Politics & Finance. There is no description for the product “Credit despite garnishment”. Both borrowers are insolvent, it can come to a garnishment. and she called me and said they did not have a mercenary seizure of the Ar.
Seizure and assignment of wages – differences, conditions and consequences
The seizure of wages is one of the most widely used means of enforcement. Monthly salary is the source of income for the majority of debtors. The lenders address their claims to the appropriate client. The debtor must comply with a certain minimum salary. What is the difference between a wage garnishment and a wage allocation?
The terms “garnishment” and “garnishment” are synonymous with the term “garnishment”. For the attachment of wages, it should be noted that the debtor must comply with a certain minimum wage level. A vendor binds the garnishment directly to the principal of the borrower. For example, the customer of a customer becomes a debtor to which the vendor belongs. In the case of continued salary payment, the debtor transfers the garnishment portion of his capital to a lender if he can not disburse the granted credit transaction.
To enforce this claim against the principal of the debtor, the debtor must rely on the assignment of wages. Frequently, a salary assignment to the house bank is declared as a security when borrowing. Employees can include the wage allocation provisions in their employment contracts. h3] In what order do the claims against the lenders have to be treated in both cases?
In the case of the assignment and attachment of wages, the client must follow a fixed sequence in order to meet the demands of the respective lenders. However, the client only has to comply if the salary has not been explicitly rejected in the employment contract. The time of issuing the wage allocation determines the order in which the claims of the vendors must be processed.
If a trader already pays a subcontract, then a second claim, due earlier, is made and must first be serviced. For the disbursement, it does not matter to which date the subcontract has been received by an entrepreneur: If the entrepreneur makes a previously defined subcontract from another source and only then announces it, then the prerogative remains.
The assignment of wages shall be granted to the creditor who has used the assignment of wages on that date in the amount exceeding the amount limit. Only then can the first vendor so far enforce his claims. If the monthly installments for a loan are paid, there are no disadvantages. In the event of an economic bottleneck, it is possible that a debtor is in default.
Failed debtors throwing their brains into the dust can quickly be threatened with seizure of their wages if the loan agreement does not cede wages. Even if the client does not execute the assignment of wages, the vendor can trigger the attachment proceedings accordingly. For the loan or installment amount, a wage garnishment is irrelevant. As a rule, a loan is signed when borrowing a consumer loan.
This is the case, for example, when a loan for the purchase of a car has been completed, a marriage ceremony or a longer trip is to be financed. For borrowers, the assignment of wages is often the only steady method of providing collateral to the house bank. Debt collection agencies also often seek a wage allocation. What legal and economic consequences does the seizure of wages have?
To execute a garnishment, a vendor must be in possession of the address of the customer of a customer. If the Arbitration Tribunal allows it, the competent Judicial Officer will be instructed to inform the Client of the seizure and assignment decision. With this decision, the client is prohibited from paying out the receivables to be confiscated to the debtor.
The employees are legally to contribute to the attachment of wages.
This means that he must determine the garnishment portion of earned income and ensure that this value reaches the creditor. If the client does not fulfill this obligation and passes the entire salary on to the employee, this does not release him from the debt to the lender.
The amount of money may need to be repaid, this time directly to the lender. Within two weeks after the delivery of the arrest order, the declarant of the third party has to be presented to the lender. In this declaration, the willingness to pay is declared whether other creditors make claims on the assets of the debtor and whether has already been seized. In the case of multiple seizures, the client must settle the matter in the order in which they are delivered.
An employee is also required to correctly calculate the attachable income. What are the legal and economic consequences of wage distribution? In contrast to the garnishment of wages, the vendor immediately contacts the client in the case of continued salary payments. In particular, not if the contract of employment of the debtor excludes the assignment of wages. The lender then has only the option of claiming a seizure of wages before the Court.
To what extent can the allocation and seizure of wages be stopped? There are several ways to prevent the assignment or attachment of wages: How high in a wage garnishment the pay can be, is stated in the Pfandafel. In the right column, the monthly net income, but also salary and pension components, but also achievements such as ALG I, ALG II and one-time supplements of the client, Astro at half-time to max. 500 charged.
The attachability of the income also depends on the dependent persons living in the house of a debtor, such as children, spouses without wages, but also divorced spouses who receive alimony. A receipt between 0 and 1139 USD per started year will not be collected. In addition, the salary component to be confiscated increases in increments of USD 10.
For a net salary between 1140 and 1149 USD 4.34 USD per month and 11.34 USD per month for a net wage between 1150 and 1159 USD can be collected. For a net wage of USD 1570 or more, $ 305.34 and $ 4.34 would be seizable for a dependent person. Based on a salary of 1800 USD net, the garnishment is 466.34 USD for the borrower himself, 119.75 USD for the first member and 0.70 USD for the second member.
For amounts above $ 3,475.79 all contributions are attachable. Investments and assignments become ineffective as of this date, as the debtor’s assets were in bankruptcy.