Bad news for those facing debt collection! 60% of wages may be garnished.

The Enforcement and Bankruptcy Law, which has been in effect in Türkiye since June 9, 1932, is undergoing a complete overhaul. Lawyer Mustafa Zafer, commenting on the key points in the draft package announced on the Ministry of Justice's official website, stated that when debtors' wages are garnished, less will be deducted from those earning less and more from those earning more. He noted that if the draft goes into effect, up to 60% of white-collar workers' wages will be garnished. The current regulation allows for a maximum deduction of 25% from a debtor's salary, regardless of their current salary.

Justice Minister Yılmaz Tunç stated that Türkiye needed a new enforcement and bankruptcy law, announcing that the scientific committee had concluded its work and that the draft would be opened for comment. Details of the draft package, expected to be submitted to Parliament in the coming days, have also emerged.

Speaking to TGRT News, lawyer Mustafa Zafer said, "Since all decisions made by civil courts are executed by enforcement offices, the proposed changes are of great concern to everyone, from 7 to 70."

While the current enforcement and bankruptcy law sets the payment period for all debts initiated without a judgment, that is, debts based on invoices, as 7 days, and for debts pursued through attachments specific to bills of exchange (check and promissory note debts), as 10 days, the bill extends these periods to 15 days. This allows the debtor to pay their debts over a longer period. Of course, no property belonging to the debtor will be seized during this 15-day period specified in the draft. Therefore, extending these deadlines will be a significant regulation for citizens' ability to pay their debts.

"60% of salaries may be garnished"

Zafer noted that the draft package would also revise the practice of garnishing debtors' wages, saying that "less deductions will be made from those earning less, and more from those earning more." Zafer made the following statement:

The current regulation regarding wage garnishment stipulates that a maximum of 25% of a debtor's salary can be deducted, regardless of their actual salary. However, the draft currently in effect allows for a minimum wage earner to deduct a maximum of 10%. This would allow for deductions of up to 60% of the salary of relatively higher-paid white-collar workers. This would allow for lower-paid employees to deduct less, while higher-paid employees would be able to deduct more.

If the draft text becomes law, the following rates of seizure will be applied based on income:

a) One tenth of the income for those whose income is equal to the net minimum wage.

b) Two-tenths of the income for those whose income is up to twice the net minimum wage.

c) Three-tenths of the income for those whose income is up to three times the net minimum wage.

c) Four-tenths of the income for those whose income is up to five times the net minimum wage.

d) Five-tenths of the income for those whose income is up to seven times the net minimum wage.

Half of a person's salary, which is 22,104 x 7 = 154,728 TL, can be seized on 77,364 TL. (Currently, a maximum of 38,682 TL, which is 1/4 of the salary, can be deducted.)

e) Six-tenths of the income for those whose income is nine times the net minimum wage or more.

Source: 10haber