Key Things to Know About Wage Arrestment
Courts use wage arrestment to deduct money from your salaries to repay your debts directly. In Scotland, it is called an EAO (Earnings Arrestment Order). Moreover, Northern Ireland, Wales, and England use the term “Attachment of Earnings Order” for this process. If you want to avoid a Wage Arrestment order, it is essential to understand particular situations that can increase the chances of this order.
Time to Apply Wage Arrestment
If an employed person owes money for child support payments, maintenance or council tax, wage arrestment is applied. These are priority debts; therefore, you have to pay them within the given timeframe to avoid this order. At first, you will receive demands to make payments. After missing a few payments, you may receive notice to appear in court.
Courts often administer the repayments of priority debts via wage arrestment. Your company will be instructed to subtract a particular amount from your salary. You can’t refuse to make a payment. If you refuse to share your employment details, bank account details, and national insurance number, you will have to pay an extra fine.
Why should you avoid wage arrestment?
Remember, after passing orders for wage arrestment, court councils will decide what percentage of your salary will be withheld by your company. They may calculate this amount after checking your income, increments, and bonuses. More than 40% can be deducted from your salary at a time. This amount will increase with an increase in your wages.
Sometimes, a company may terminate you because of wage arrestment because they consider it a disciplinary offense. If you are working in the financial sector, your chance of losing a job because of earnings arrestment will be higher. These orders may not apply to self-employed people or serving members of the Armed Forces. In these cases, the court will use other repayment methods.
Tips to Avoid Wage Arrestment
After receiving a summary warrant from a court, you can’t sit silently. This warrant will mention the amount they want to recover. If you want to avoid serious problems, take some positive steps. You will need expert advice, such as a qualified lawyer. Here are some necessary things to do:
Check Validity of Orders
For legitimate arrestment order, your creditors should arrange for a DAIP (Debt Advice & Information Package) and send it almost 12 weeks before serving a warrant. You will formally get 14 days to pay the debt. The stated amount in the order will include interest and other fees.
You have to check this order carefully to ensure all details are accurate. Make sure to read the DAIP. A sheriff officer can serve this order by recorded delivery to your employer. It may include instructions, such as a procedure to calculate payments and current deduction tables.
How to stop a wage arrestment?
You may be able to stop a wage arrestment by acting quickly and attempting to negotiate a payment plan with creditors.