What are the new stricter rules on foreclosure of current accounts and jump limits on some salaries and life insurance policies? Many rules and regulations relating to the foreclosure procedure for homes, money and other assets, both immovable and movable, have already changed between last year and the first few months of this year, but further changes are still underway, with the aim, in in most cases, to speed up the attachment times in order to simultaneously speed up the collections to avoid the attachment itself.
New stricter rules on current account foreclosures and new tightening What limits jump on salary and life insurance foreclosures
New stricter rules on current account foreclosures and new tightening
Times and procedures for foreclosure change and become fasterabove all in the light of what has been decided again in the fiscal delegation law which has made the procedures for the recovery of possible debts much easier, but only by the Revenue Agency with the Automated bank account seizure.
Automated bank foreclosure has thus been defined because it can be triggered even in the absence of a specific authorization from the judge and this means that any citizen who has debts will be able to have their bank account blocked.
Therefore, no court procedure will be necessary for a bank account to be seized and, we specify, that it is only an operation that can be started only and exclusively by the Revenue Agency and never by private creditors.
Specific treatments are excluded from the so-called automatic forced attachment, such as pensions of various kinds, life insurance and assistance allowances for disabilities. In these cases, for an effective start of the attachment, the Revenue Agency must also contact the competent judge, to authorize the attachment procedure.
If the balance of the current account to be seized is null or negative, according to what has recently been established, action is taken on subsequent income.
What limits jump on wage foreclosures and life insurance policies
Like the debut of the automated foreclosure on bank current accounts by the Revenue Agency without the need for a judge’s act, the limits set for the foreclosure on salaries and life insurance policies are skipped.
The laws in force envisage, in particular, specific limits on the seizure of salaries and current accounts, which are updated every year because they vary and depend on the amount of the social allowance, subject to annual revaluation.
For 2023, the amount of the social allowance has increased to 503.27 euros per month for 13 months. The attachment of salary depends on the amount of the social allowance to the extent that, by law, the minimum subsistence cannot be attached, equal to double the social allowance and can never be less than a thousand euros.
Therefore, if the amount of the social allowance is 503.27 euros, the minimum subsistence allowance for 2023 is 1,006.54 euros. The attachment of salary can take place in different measures beyond this amount, which therefore becomes unattachable.
It is possible to attach the salary according to the limits established by law both from the employer and on the current account where it is credited. In particular, it is possible to garnish the salary from the employer in 2023 only within the limit of one fifth, while if the creditor is the Revenue Collection Agency, the limits for the garnishment of the salary are:
a fifth for salaries above 5,000 euros; a seventh for salaries up to €5,000; a tenth for salaries up to 2,500 euros. Moving on to the limits on foreclosure on a current account, the laws in force in 2023 provide, on the basis of the balance available on the account, the possibility of foreclosing only the part exceeding three times the social allowance , i.e. 1,404.30 euros considering the amount of the social allowance, as mentioned, in 2023 of 503.27.
However, according to recent approved foreclosure news, there are cases in which it is possible to garnish the salary without any limit, entirely. These are cases in which not only the salary is credited to the current account but also sums of other nature arrive, such as fees for rent, or for payments for collateral activities, etc., and in such cases, as decided, the creditor can garnish all salary.
The attachment of salary without limits and entirely can also be triggered against workers with para-subordinate employment contracts such as coordinated and continuous collaborations, who are treated as employees, and self-employed workers, professionals, craftsmen, VAT numbers.
Moving on, however, to the chapter life insurance policiesthe discussion is quite broad: according to the latest approved news, if a social security life policy is stipulated, then it cannot be attached, because the stipulation of a life policy in this sense depends on a need to guarantee one’s own future and that of one’s descendants and family members for whom it cannot be touched, but if it is a type of life insurance policy as an investment, speculative, then it too can be foreclosed.
In fact, life policies are available with financial products that follow market trends and for which premiums and capital depend on stock market shares or indexes and banking and financial reference values. In this case, the creditor can attach the life insurance policy in relation to the indemnity accrued.