5 Ways to Avoid a Garnishee Order from Creditors in South Africa

By The National Debt Review Center

When your creditors decide they are ready to garnish your income, their legal action can have you feeling like you are trapped.

What is a Garnishee Order in South Africa?

A Garnishee Order is a court order that requires a debtor’s employer to withhold a certain amount of the debtor’s wages and pay that money to the creditor. The purpose of a Garnishee Order is to help creditors collect on debts that are owed to them. In South Africa, a Garnishee Order can only be issued if the debt is for more than R500 and the debtor has not made any payments towards the debt for at least 30 days.

If you are struggling to repay your debts, you may be worried about creditors taking legal action against you. One way that creditors can try to collect on a debt is by obtaining a Garnishee Order from the court. A Garnishee Order requires your employer to withhold a certain amount of your wages and pay that money to your creditor.

Although a Garnishee Order can be an effective way for creditors to collect on unpaid debts, it should be used as a last resort. If you are able to negotiate with your creditor and come up with a repayment plan, you can avoid having a Garnishee Order issued against you.

5 Tips to Prevent a Garnishee Order

If you are struggling to repay your debts, you might be worried about a garnishee order. A garnishee order is a legal order that allows a creditor to deduct money from your salary or bank account to repay your debt. In South Africa, creditors can apply for a garnishee order if you owe them more than R500.

There are some ways that you can avoid a garnishee order from your creditors. Here are some tips:

1. Keep up with your debt repayments

If you keep up with your debt repayments, then your creditors will be less likely to apply for a garnishee order. Make sure that you make at least the minimum payment on time every month. If you can afford to, try to pay off more than the minimum amount each month.

2. Negotiate with your creditors

If you are struggling to make your debt repayments, try negotiating with your creditors. Explain your financial situation and see if they are willing to work out a new repayment plan that is more affordable for you. Creditors are often willing to negotiate because they would rather receive some of the money that you owe them than nothing at all.

3. Seek help from a debt counsellor

If you are struggling to deal with your debts, seek help from a registered debt counsellor. A debt counsellor can help you develop a debt repayment plan and negotiate with your creditors on your behalf.

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4. Apply for debt review

If you are struggling to repay your debts, you can apply for debt review. This is a legal process that can help you get your debts under control. A debt counsellor will assess your financial situation and develop a new repayment plan that is more affordable for you.

5. Consider bankruptcy

If you are unable to repay your debts, you can consider declaring bankruptcy. This is a last resort option and should only be considered if all other options have failed.

What is an emoluments attachment order?

An emoluments attachment order (EAO) is a court order that allows a creditor to attach a debtor’s salary or wages in order to repay a debt. The EAO is also known as a wage garnishment. In South Africa, an EAO can be issued by the magistrate’s court or the high court.

When an EAO is issued, the debtor’s employer will be required to deduct a certain percentage of the debtor’s salary or wages and pay it directly to the creditor. The deduction will continue until the debt is paid in full or arrangement has been made to repay the debt.

It is important to note that an EAO should not be confused with a wage deduction order, which is used to deduct money from an employee’s wage in order to repay debts owed to the state, such as taxes or child support payments.

Conclusion

A garnishee order is a legal tool used by creditors to collect money owed to them. If you are struggling to pay your debts, you should be aware of the ways in which creditors can use garnishee orders against you. Fortunately, there are some things you can do to avoid having a garnishee order issued against you. By following the tips outlined in this article, you can increase your chances of avoiding a garnishee order and keeping your finances under control.

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