‘Wage arrestment’s’ or ‘earnings arrestment’s’ can be applied to anyone excluding current serving armed forces members. When you owe money to a creditor they can contact your work place and put in motional for a charge of payment which will start the arrestment of your wages. For this to happen they must send you a notice from a tribunal or from a court and also a debt information package. Most commonly this tactic is used to comply with paying off council tax debt. Your employer is legally obliged to take a cut from your wages whether it’s daily, weekly or monthly. There may be a clause in your contract of employment that states a wage arrestment is something you should be disciplined for. Money that can be taken from your wages include bonuses, commissions and statuary sick pay.
What Can’t Be Taken From Your Wages
There are limited income sources that can’t be taken form your account these include:
- All benefits
- Any disablement pensions or allowance
- Tax credits
- Many public sector pensions such as teacher’s pensions, police pensions, local authority or civil service pensions
- Any redundancy pay
Can Money be Taken Without A Court Order?
There are two ways in which the creditor can ‘arrest your wage’ without a court order.
First is a DEO also known as a deductions from earnings order this can be put in motion if your avoid paying child support. However, this can only be used by the child maintenance service or the child support agency.
Second is DEA or direct earnings attachments this can be used if you have been overpaid your benefits. This can only be used by the department for word and pensions.
How To Stop Wage Arrestment’s
To stop wage arrestment’s from happening you should use a statutory moratorium, this can still be used after the Charge For Payment has been put into motion. By using this tactic you give yourself six months to come to a better long-term solution whether it is a trust deed or a debt arrangement scheme.
Even if this isn’t your best option you can look into applying for a Time to Pay Order. This allows you to begin a instalment plan with the lender. A Time to Pay Order is what you ask the judge for when taken to court by a creditor for not paying a debt. If you are awarded this you can either get into an instalment scheme to pay it off monthly or they will give you up to six months to then pay it off in full.