25.11.2021

SEIZURE OF SALARIES AND PENSIONS: WHAT INCOME IS SAVED FROM SEIZURE?

This question worries more and more people, especially in times of crisis.

Salaries up to BGN 840 can no longer be seized due to debts and people will take them in full. The reason for this is the increase of the minimum wage to BGN 650 from January 1, 2021.

According to the Code of Civil Procedure (CPC), in the case of compulsory collection of overdue loans and unpaid bills for telephone, heating, etc., from the debtor's earnings and from the pension received by him, the creditors must leave him an amount equal to of the minimum wage. The debtor must have a minimum wage after taxes and insurance, according to the Civil Procedure Code. With a salary of BGN 840 after withholding taxes and social security contributions, the debtor must receive BGN 651.82, i.e. creditors can now take only BGN 1.82 from him.

Pensions up to BGN 650 will also not be seized, according to the Civil Procedure Code and the Tax and Social Security Procedure Code. Creditors cannot touch lower wages and pensions either. If the income is paid into a bank account, the banks must allow the debtor to withdraw up to the minimum wage (BGN 650) per month.

If the debtor's monthly income, after paying taxes and social security contributions, is between the minimum wage and twice its amount (from BGN 650 to BGN 1,300), debt collectors can take 1/3 of his income, if he is childless, and 1/4 if he has dependent children. If, after paying taxes, the debtor takes between twice the minimum wage and four times its amount (from BGN 1,300 to BGN 2,600), creditors can collect 1/2 of his income if he is childless, and 1/3 if is with children.

If the debtor's monthly remuneration after payment of taxes is more than four times the minimum wage (over BGN 2,600), creditors may take the excess over twice the minimum wage (BGN 1,300), if without children, and the excess over twice and a half of the minimum wage (BGN 1,625), if he has children to support.

Some personal belongings cannot be taken from the debtor. These include "teaching aids, including books and musical instruments, the use of which is necessary for the general and vocational training of the debtor and his family members". This means that if the child is learning remotely, they cannot take the family laptop he is using.

What else can't they take from us?

Debt collectors cannot take the debtor's refrigerator, stove and washing machine. The list of personal belongings against which enforcement cannot be directed due to debts has been determined by the Council of Ministers.

Among them are used shoes and underwear, some clothes, one bed for each member of the family, one double wardrobe, kitchen buffet, tables and chairs, ordinary household and kitchen utensils and dishes, a telephone and a radio.

Most often, private bailiffs take TVs, mobile phones and jewelry from debtors. These items are not protected by law and are the easiest to sell. Their pets, if they are not kept for sale, baby food and accessories cannot be taken from the debtors.