A wage arrestment will involve courts and employer of the debtor. Remember, debtors can stop a Wage Arrestment (Earnings Arrestment) by acting quickly. Once a wage arrestment order applies, a portion of your salary will be deducted by your employer to pay your outstanding debt.
If you failed to pay two or more installments of your debt, the court would issue this order for recovery on behalf of creditors. This order applies to employed people only. If you are self-employed, living on unemployment benefits or serving in armed services, you are not eligible for this order. Moreover, debtors must owe more than £50.
Action of Employers to This Order
Remember, an employer can’t say no to wage arrestment orders. Your company can deduct almost £1.00 administration fee for each deduction. Attachment of earnings may become a reason of embarrassment for workers. Sometimes, the involvement of your boss in this matter can increase the risk of termination from a job for you.
Calculations for Wage Arrestment
You will get forms to fill in your expenditure and income details. Court uses this information to calculate a specific amount for wage arrestment. Through this information, the court can calculate an affordable amount for each debtor. In numerous cases, you have to share your employment details on this form.
Stop a Wage Arrestment
If you want to stop a wage arrestment order, you have to evaluate your situation. A suspended attachment of wages may not involve employer. Choose to make repayments directly to creditors. In case of a repayment lapse during suspension order, creditors can apply for a wage arrestment order. If you failed to conform with a suspension order, the court could issue a wage arrestment order through your boss.
Fortunately, you can stop these orders after receiving an assessment form to calculate the wages for arrestment. You have to pay the owed amount to creditors to avoid attachments of earnings.
Sometimes, creditors need full payment because of previously missed payments. You can negotiate with creditors for easy installment on the condition that wage arrestment can be used later. Make sure to avoid missing repayments to stop earnings arrestment orders.
Wage Arrestment and a New Job
Wage arrestment order will not end after obtaining a new job. You have to inform the court about your new job. The court will decide whether to issue an arrestment order for your new employer. By concealing this information from the court, you will commit an offence. For this offense, you can be sent to jail or pay a hefty fine.
After receiving a wage arrestment order, you have to double-check its legal value. The creditors are liable to issue a DAIP (Debt Advice & Information Pack). In the absence of DAIP, you can argue the authenticity of this order. If you want to avoid the evil effects of this order, it is necessary to repay your debt at the right time. Consult a lawyer for legal advice because a wage arrestment order can make your life difficult.