Check If You Qualify

What is Attachments of Earnings and how does it work?

Sharon McDougall - Updated - 5th February 2024 - 3 minutes to read

An Attachment of Earnings, or Earnings Arrestment as it is known in Scotland, is part of the ‘diligence’ process available to creditors who have been unable to collect their monies despite obtaining a court order.

They must have sent a charge for payment to you as their debtor, along with a Debt Advice and Information Package (DAIP). The DAIP explains your rights in this situation, lets you know where to go for advice, and without it the charge for payment is not legal.

One exception to this is in the case of court fines, in which case a charge for payment is not required, but the Fines Enforcement Officers must still send you a DAIP.

How does Attachment of Earnings work?

Attachment of Earnings allows your creditor(s) to access part of your wages in order to repay their debt. Strict rules are in place regarding how much can be earmarked for debt repayment in this way – a particular worry if you have more than one creditor chasing you for payment.

A court officer will send the Earnings Arrestment to your employer stating how much should be taken, and you should also receive a copy. Your employer is entitled to make an administrative charge of £1 each time they carry out the instructions, which may be daily, weekly or monthly depending on your contract of employment.

Additionally, there may be a clause within your employment contract stating that being in debt or entering formal insolvency are disciplinary matters. This is the case for prison and police officers, but if you work in the financial or legal sectors it could also be an issue. On a positive note, the fact that you could lose your job if an Attachment of Earnings is issued, may be a negotiating point as without an income your creditor is less likely to recover any of their debt.

Debt Calculator

Get a rough indication of what your monthly repayments might be under each of our different debt solutions.

How are debtors protected by legislation?

The Debtors (Scotland) Act, 1987 sets out the amounts to be deducted, and ensures that a minimum level of income remains available to you as the debtor. Statutory tables provide the formula to calculate each payment, and these are updated every three years to reflect changes in national pay scales. The Bankruptcy and Diligence (Scotland) Act, 2007 updated some of the rules surrounding Earnings Attachment, as described below:

  • Your employer must let you know the amount of the first deduction from wages, and when it will be taken.
  • Employers are required to provide an annual statement of deductions to their employee and the creditor. If this is not provided, your employer may face a fine.
  • Other employer obligations include providing information about your new employment to the creditor(s) should you leave your job.
  • It is also incumbent on you as a debtor to give notice to your creditor about any changes in employment.
  • You must have received a Debt and Information Package within 12 weeks of commencement of Earnings Arrestment.

If you come to an informal arrangement with your creditor, or enter a formal insolvency procedure such as a Trust Deed, you should be able to stop the Earnings Arrestment. We can advise on the most suitable course of action in your circumstances.

Scotland Debt Solutions helps residents in Scotland to become debt free. We have more than 60 debt experts working from local offices around Scotland, and can arrange a free initial consultation to discuss your financial situation.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

Helping Scots Get

Out of Debt Since 1989

We'll give you a call

Our Scottish based team can help advise you on your debt problems.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.

Find out More
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.

Find out More
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority

Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.

ICAS Insolvency Practitioners