Most debtors will soon no longer need to have deductions taken from their income for repayments if they earn less than Bt20,000 a month.
A wide of range of debtors will benefit from an amendment to the Civil Procedure Code that raises the income ceiling – above which payment deductions can be applied - from Bt10,000 a month.
The change, which will take effect from September 6, increases the living allowances for debtors.
Legal Execution Department director general Ruenvadee Suwanmongkol said yesterday that the ceiling was raised to reflect rises in the cost of living.
“After more than two decades in force, the revision is needed so as to ensure the law keeps pace with changing economic and social conditions,” she said.
Promulgated in the Royal Gazette on July 6, the revised code will take effect after two months.
Ruenvadee said that although the law allows creditors who request legal execution of court orders to take the assets of their debtors, the income needed for creditors’ living expense is exempted from such asset seizures.
Ruenvadee said that only income that exceeded Bt20,000 a month could be taken by creditors. “For creditors who have had irregular income, legal-execution officials will exercise judgement in deciding whether or how large a portion of their income they will have to hand over to their creditors,” she said.
However, she said the law simultaneously gave debtors, creditors and any person disagreeing with the legal-execution orders over repayment amounts the right to petition to the court.
Ruenvadee said that the salary and pensions of current and retired civil servants were exempted from such legal-execution orders. She did not elaborate on which of the other laws creditors could take to pursue their civil actions against civil-servant and pensioner debtors.
The revised Civil Procedure Code will also raise the ceiling for the value ceiling of clothes, kitchen utensils and household appliances allowed for debtors – from Bt50,000 to Bt60,000.
Debtors will also be allowed to keep tools, livestock or any equipment valued at more than Bt100,000 that are needed for their livelihoods.