The number of Belgians who are not paying their debts is increasing significantly year by year. More than 130,000 people had their wages garnished by creditors in 2012. And in the first eight months of 2013, more than 335,000 people stopped repaying their loans. What are the garnishable incomes?
In such difficult situations, lenders can proceed with wage garnishment from the debtor’s income. It is therefore important to be informed about garnishable incomes and the authorized rates, which can vary depending on the level of income.
What incomes can be garnished?
Fixed incomes are subject to garnishment in case of payment incapacity. These include salary, housing allowance, various commissions and production bonuses, year-end bonuses, the thirteenth month, vacation pay, cash-equivalent benefits, tips, and reimbursement of expenses.
Replacement incomes are also garnishable. This includes alimony payments, incapacity benefits, pensions, disability and unemployment benefits, career interruption allowances, and allowances paid by social security funds.
Are there other garnishable incomes?
Other incomes can be garnished, such as rent received by the debtor subject to garnishment, self-employment income, and allowances paid to company directors or managers (including benefits in kind).
According to Belgian legislation, no garnishment is possible on incomes below €1,059. For monthly incomes between €1,059 and €1,138, the maximum rate is 20%. This can reach 30% for an income between €1,138.01 and €1,255, and 40% for incomes between €1,255.01 and €1,373. Any amount exceeding an income of €1,373 can be fully garnished.
