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

Tom has a wage garnishee for a debt of $6,500. The debt was recently reduced from $6,500 to $3,500 after Tom provided new information.

A DMNMFU activity is created to vary the garnishee notice amount.

The initial garnishee notice amount was for $6,000, as Tom had repaid $500.

A total of $800 has been received from Tom's employer. This reduces the balance to $5,200.

When Tom's debt was reduced, the balance also reduced to $2,200 ($3,500 - $500 - $800).

As the debt amount has been reduced, Tom's employer needs to remit $3,000 instead of $6,000. (New debt amount of $3,500 minus $500 already paid).

Tom's employer gets a Q613 letter with an amended notice amount of $3,000. This includes $800 already remitted.

The new notice amount is the new total amount (for example $3,000), not the outstanding amount

The CRN balance does not take into account funds already remitted by the employer. If it is used in the variation notice, the employer, would only remit a further $1,400 to meet the full $2,200.

Belinda has a wage garnishee for a debt of $7,800. Belinda has also had a new debt raised for $2,200.

A DMNMFU activity is created to vary the garnishee notice amount.

The initial garnishee notice amount was for $7,500 as Belinda had repaid $300.

A total of $1,000 has been received from Belinda's employer. This reduces the balance to $6,500.

Now Belinda has a new debt, the outstanding balance is $8,700 ($6,500 + $2,200).

As a new debt had been raised Belinda's employer now needs to remit $9,700 (original debt amount of $7,500 + new debt amount of $2,200).

Belinda's employer gets a Q613 letter with the new notice amount of $9,700. This includes the $1,000 already remitted.

Note:

The new notice amount is the new total amount (for example $9,700), not the outstanding amount

The CRN balance does not take into account funds already remitted by the employer. If it is used in the variation notice, the employer would only remit a further $7,700 to meet the full $8,700.

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.