Many South Africans struggle with debt which may compel creditors to pursue legal action. A garnishee order is one such option. A garnishee order is a court-ordered deduction from your salary. It is a court order that is served by the sheriff of the court that orders an employer to deduct a certain amount each month from an employee’s salary or wages to settle the debt. Besides creditors, an ex-partner can also apply for a garnishee order if the other parent is overdue with spousal support or child maintenance.
How is a garnishee order obtained?
The person or company that is owed money must apply for a garnishee order at the Magistrates Court in the area where the debtor lives or works. The debtor must be given a copy of the garnishee order and opportunity to appear in court to prove if the debt is legal or not. If it is found to be legal, the debtor must show how much they can afford to pay towards the debt. By law, the monthly deducted amount cannot exceed 25% of the debtor’s gross salary or wages.
Can a garnishee order be disputed?
An employee can dispute a garnishee order at the court. You can challenge the amount if it appears to be incorrect or if it is more than 25% of your earnings. The amount can possibly be reduced if you are financially unable to pay the full amount. If it is found that the garnishee order was not issued by the correct court, it will automatically be made null and void and you are entitled all the money you paid, plus interest.
How to prevent a garnishee order.
Prevention is better than cure. Garnishee orders are the last resort for creditors, so pay your debt repayments consistently and manage your debt effectively. If you struggle managing your financial issues, you can contact a debt management company to assist you with dealing with your debt.