SA set to cap garnishee scourge at 25%
Government plans to introduce cap on the percentage of your salary that can be 'attached' by creditors using emolument attachment orders to collect debt
The government plans to introduce a cap on the percentage of your salary that can be "attached" by creditors using emolument attachment orders to collect debt. 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, was introduced in the National Assembly this month and has been referred to the National Council of Provinces. Thereafter it will be sent to the president for approval. The bill 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% of her employees' salaries was being deducted to pay debts to credit providers. Class action Appelbaum initiated a class action suit that was heard in the High Court in Cap...
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