The financial institution, through which you have taken out a loan, requests attachment of wages. What does it mean?
Even if the creditor has tried to explain to you how this type of loan works, you do not yet have a precise idea on how it really works. Does that mean you are going to lose everything? Will your end-of-year bonus and your holiday allowance also go through? Will you be notified before this wage attachment? Here are some helpful tips to help you see more clearly.
Attachment of wages: what is it really?
With the personal loan with attachment on salary, your creditor will have to enter your allowance or your net salary. The operation is quite simple because it will be your employer or your institution which will take care of deducting a precise sum from your salary in order to be able to pay the creditor directly. To make sure everything goes according to the rules, a bailiff will give your employer the official act for attachment of wages. This entry will follow a mortgage loan payment arrears. Contrary to what you may think, the establishment does not even need your agreement before doing so if the loan has been signed with a notary.
Will the salary be deducted in full?
This question is undoubtedly the one that most arouses your curiosity. Fortunately, the answer is no. There is, indeed, a minimum income right and it is only this income that the creditor can seize. If you have children, the minimum income threshold will be a little higher than if you don’t have any. The sum beyond this minimum income is therefore due to you every month. You should also know that every year, the legislator will adjust your minimum income based on the consumer price index. But be careful, there are still some exceptions that modify this rule on minimum income, if you have arrears in the matter for example, there will be no limit on the money to be entered monthly.
What about your end-of-year bonus and your holiday pay?
Faced with this situation, what will become of your holiday pay and your end-of-year bonuses? This amount will be part of your monthly net salary, which means that in the event of attachment of salary, these sums will also be taken into account. To explain the situation to you clearly, let’s take a simple example: if you earned $ 1,000 in January and if you made $ 100 of holiday pay for this month, your total salary is $ 1,100. If the minimum wage is $ 1,000 in the event of a wage attachment, your employer will therefore only pay you $ 100 for the month of January. However, he can only pay the creditor when the holiday pay is paid to you.
Can the employer refuse to pay the creditor’s money?
Whatever the situation, the employer does not have the right to refuse payment. As it is an illegal act, he risks legal action. In addition, faced with this situation of refusal of payment, your creditor can ask the employer to pay him the full amount of your due but don’t get me wrong, your employer will not have the right to dismiss you in the event of seizure salary. Unfortunately, once this situation arises, your private life will intrude on your workplace, so it is best to discuss the situation well with your employer.
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