There are situations in which a debt accumulates with a company, and this debt can be collected in various ways. Garnishment of wages is one of these options.

So, what exactly is wage garnishment, how much money can be taken from a debtor, and under what circumstances should it be considered?

Learn all about these and other issues in this article from Lawyers in Braga. 

What is wage garnishment?

A wage garnishment occurs when a debtor's salary is seized in order to... to settle a debt that this debtor has in relation to others. 

How does wage garnishment work?

When a person owes a certain amount to a company, For example, the employer can take legal action to recover the missing monetary value. In some cases, the option in question is wage garnishment.

However, wage garnishment has specific rules to follow, such as:

• It can only be applied to net salary;
• Only one-third of the debtor's salary can be garnished;
• There are minimum and maximum limits established by law. 

Payment is collected monthly until the debt is fully paid. 

What are the legal limits for wage garnishment in Portugal?

In order to ensure that the garnishment is settled as quickly as possible, but without leaving the debtor without means of subsistence, there are legal maximum and minimum limits on the salary that can be obtained after garnishment. 

It is mandatory that the debtor's net income not be less than minimum wage nor more than three times that value.

What is the maximum percentage that can be seized?

 The maximum percentage that can be seized is the equivalent of three minimum wages up to the time of each seizure. 

Is there a minimum amount of money that cannot be seized?

A person cannot have less than the minimum wage (870 euros) in their bank account; in other words, there is a limit that allows a person to have at least that amount for the month. 

This situation occurs when the debtor has no other means of subsistence.

What are the common situations in which wage garnishment is applied?

The most common situation of wage garnishment occurs when a person allows a debt to accumulate over a long period of time. 

What are the rights and duties of a worker during garnishment?

In the garnishment process, workers have rights and duties that they must fulfill. Regarding rights, the following stand out: exemption from the seizure of assets such as:

• Essential items for domestic life;
• Assets that are used for the debtor's work or professional training;
• Two-thirds of the debtor's salary should not be subject to seizure. 

Regarding obligations, it is important to highlight that the debtor must cooperate with the seizure process. 

Who can request the garnishment of my wages?

A wage garnishment order can be requested by a public or private company, provided that the existence of a long-term debt is demonstrated. 

Can I contest the garnishment of my salary?

Yes. The debtor has two options to contest the seizure: opposition to the garnishment of wages and opposition to enforcement. There is also the option of insolvency.

In the case of opposition to the garnishment of wages, this can be applied when there is suspicion that there is an amount of... collection of seizure excessive. When the limits on the value of seizures are exceeded, the debtor can contest the seizure.

When the issue is a seizure order, those affected by the seizure may file an objection to payment within 20 days of receiving notification of the seizure. 

For example, when a company is unable to pay a debt, it can file for insolvency. 

If an individual is experiencing such difficulties, they can ask for a Special Procedure for Payment Agreement which aims to create a payment plan. 

How long does the wage garnishment process take?

The wage garnishment process does not have a specific deadline, as it depends on the amount owed and the complexity of each case and the individuals involved. The process ends when the debt is settled. 

What happens if you change jobs during garnishment?

It is possible to change jobs during garnishment. However, part of your salary will still be garnished, as the debt is not dissolved if you change jobs.

Therefore, the salary you receive in a new job will also be subject to garnishments, since the debt remains. 

Can I negotiate the amount of the lien?

There is a possibility of reducing the amount of the seizure. The creditor may be able to file a request with the court to try to reduce the seizure amount from one-third to one-sixth, or even suspend the seizure for a period of up to one year. 

Is it worth hiring a lawyer to contest a wage garnishment?

Yes. Hiring a lawyer is crucial in situations involving wage garnishment, as this professional can assist in negotiating the garnishment, contesting it, and other important aspects of the process.

No Lawyers in Braga It has qualified professionals to help you fight for your rights, and they are also the right person to advise you on the best decisions to make. 

Conclusion 

A wage garnishment occurs when a person owes money for a long period of time, and happens when the debtor's salary is automatically withdrawn in order to settle the debt.

However, there is a limit to the amount that can be withdrawn. No withdrawals can be made until the person has less than the national minimum wage, and a maximum withdrawal can be made of up to three times the minimum wage.