Can a creditor deduct money from my salary?

I owe a large amount of money to my former landlord which I have not being able to pay in spite of requests by debt collectors. Now the debt office in my town has asked me to provide details about my income so my debt can be deducted from my salary bit by bit. Is that legal?

Yes. If you are unable to settle your debt after being requested to do so by your municipal debt collection office, the debt collection office is allowed to deduct money from your income for up to 1 year in order to repay your debt.

The amount deducted must be reasonable and leave you with enough money for your basic living expenses. This generally follows the “minimum existence” conditions set by your municipality.

If you are employed, the office will normally contact your employer directly, and your employer will then deduct the debt repayments before paying out your salary every month until the debt is paid or the 1 year term expires. Any debt remaining after 1 year of deductions will be written off by your creditor.

In some municipalities, debt collection offices allow you to deliver the payments owed rather than having your employer deduct them. This is beneficial in that your employer is not informed about your debts.

Failure to cooperate with the debt collection office will result in prosecution.