Varying or ceasing a garnishee notice to recover debts 107-05050060

Tom has a wage garnishee for a debt originally of $6,500. Tom has since repaid $500.

The original notice amount for the employer is $6,000.

Interest charges of $5.00 have accrued while the arrangement was Pending and awaiting the first garnishee remittance.

Tom provides new information and the debt is reassessed; the debt now reduces to $3,500 which triggers a DMNMFU to generate to vary the notice amount.

Since the original notice, the employer has remitted $800.

CRN balance is $2,205 ($3,500 - $500-$800+ $5).

The Q613 should reflect the new garnishee notice amount of $3,005 (current balance of $2,205+Garnishee remittance of $800).

The new notice amount is the current recoverable balance plus any garnishee remittances made so far.

All debts included in the original garnishee notice must be checked for garnishee remittances, including those with a $0.00 balance, otherwise the garnishee notice amount will be incorrect.

The new notice amount should not be calculated based off the original notice amount, as the customer may have made additional voluntary repayments since the original notice was issued. Interest charges accrued until the first payment is made and during any period the arrangement was broken also needs to be taken into account.

Belinda has a wage garnishee for a debt originally of $7,800. A new debt of $2,200 has been raised on Belinda’s record.

The original notice amount for the employer was $7,500, as Belinda had made a repayment of $300.

Since the original notice, the employer has remitted $1,000.

Interest charges of $5.00 have accrued while the arrangement was Pending and awaiting the first garnishee remittance.

Belinda’s new balance is $8,705 ($7,800 + $2,200 + $5 -$300 - $1,000).

Due to the new debt raised a DMNMFU activity is created to vary the garnishee notice amount.

The new notice amount is the current recoverable balance plus any remittances made so far.

All debts included in the original garnishee notice must be checked for garnishee remittances, including those with a $0.00 balance, otherwise the garnishee notice amount will be incorrect.

The new notice amount should not be calculated based off the original notice amount as the customer may have made additional voluntary repayments since the original garnishee notice was issued. Interest charges accrued until the first payment is made and during any period the arrangement was broken also need to be taken into account.

Adrian has a wage garnishee for $5,400 at a rate of $50 per week. Adrian's employer has remitted $3,400. This reduces the balance of $2,000.

Adrian contacts Debt Recovery and speaks with Lucy. Adrian asks to reduce the instalment amount to $30 per week.

Even though Adrian's offer of $30 per week is acceptable, Lucy still needs to complete a financial circumstances assessment.

Adrian's excess from the financial assessment is $60 per week. Lucy advises Adrian that the instalment amount can be reduced to $40 per week (two thirds of the excess). Adrian accepts this offer.

Adrian's employer gets a Q613 letter to reduce the wage deductions to $40 per week.