Stopping a Wages Arrestment

A wages arrestment or attachment of earnings will involve the courts and the debtor’s employer. But wages arrestment can be stopped if the debtor acts quickly enough.

What is a Wages Arrestment?

Wages arrestment means that a portion of the debtor’s wages will be taken by the debtor’s employer to pay the outstanding debt. Before a wages arrestment can happen a County Court Judgement will have been granted by the courts. An attachment of earnings can only occur if a debtor has missed one or more payment on a County Court Judgement. If the debtor has fallen behind with a payment on the CCJ then the court can use an attachment of earnings to recover the debt for the creditor.

Who Can Be Subjected to a Wages Arrestment?

There are a few stipulations on who can and can’t have their earnings arrested. The debtor must be employed; self employed people cannot have their wages arrested. The debtor must not be on benefits such as unemployment benefits. Debtors who are in the armed forces cannot have an attachment of earnings placed against them. It is also the case that the debt owed must be over £50.

Does My Employer Have to Comply With This Order?

Yes, it is the legal duty of employers to deduct however much the courts insist from the debtor’s wages. The employer can also deduct a £1.00 administration fee every time the money is taken from the debtor’s salary. Attachment of earnings can be a cause of embarrassment for many employees once the employer becomes involved in the wages arrestment situation.

How Do the Courts Decide the Amount to Arrest?

The debtor will be sent forms to fill in that will include income and expenditure details. From this information the court will calculate how much the debtor can afford to pay back over a set period. The debtor should be able to comfortably afford the repayments from their wages. Other information on the forms will include the debtor’s employment details in order to contact the employer. Other credit and debt details will also be included to help calculate the amount that can be arrested.

Can I Lose My Job Due to Wages Arrestment?

It’s unlikely that an employer is going to dismiss an employee due to an attachment of earnings. But the employer may not look favourably on the situation and it could lead to chances of promotion being affected. The court may agree to a Suspended Attachment of Earnings Order. This is detailed in the forms sent to the debtor from the court. The debtor must give a reason why the arrestment should be suspended. Reasons can include that the order may lead to dismissal from the debtor’s job.

How Can I Stop a Wages Arrestment?

Stopping a wages arrestment will depend on how far along the debtor has allowed the situation to evolve. If a Suspended Attachment of Earnings is granted then the employer need not be involved. Repayments will be made directly to the creditor. But if the repayments lapse during the suspension order then the creditor can once again apply for a wages arrestment. If the debtor has failed to comply with the suspension order the court will more than likely order wages arrestment through the employer.

Other Ways to Stop a Wages Arrestment?

A wages arrestment can also be stopped at the point when the forms are sent to the debtor to assess how much wages can be arrested. If, at this point, the debtor pays the amount owed to the creditor then the attachment of earnings can be avoided. It may be the case that the creditor will require full payment of the debt due to previous missed payments. Creditors may still be agreeable to debt instalments on the condition that wages arrestment may be used in the future.

Will the Wages Arrestment Follow Me Through Different Jobs?

If the debtor does obtain a new job then the wages arrestment will end but this does not mean it has been cancelled. The debtor must notify the courts of the new employment details in order for the courts to decide whether to issue a new arrestment order. If the debtor does not supply the new employment details they can have committed an offence and may be fined or sent to prison.