Can a Wage Arrestment be stopped or challenged?

How to stop a creditor from recovering money from your earnings

Wage arrestment, also known as an earnings arrestment or attachment of earnings, is a legal process that allows a creditor to take money directly from a person’s wages in order to pay off a debt that they owe. However, wage arrestment can only be used against people in specific circumstances.

Individuals may be able to challenge or stop a wage arrestment if an enforcement action against them has not been carried out in the correct legal manner.

How can creditors get a wage arrestment order against me?

If you are behind on debt repayments, a creditor may apply to the courts to obtain an order which would allow them to have money deducted straight from your salary on payday.

This is known as an ‘Earnings Arrestment Order (EAO)’ which can be legally submitted to an employer instructing them to automatically deduct a specified percentage of a salary payment and to direct these funds to a sheriff clerk, who in turn can send this money to the creditor who is owed the money.

The amount that can be taken depends on how much the debtor earns and their individual circumstances, meaning that there are specified limits to the amounts that can be taken. This page on the Citizens Advice website clearly sets out the how much can be taken from daily, weekly or monthly earnings depending on the net earnings of the debtor that the wage arrestment is sought against.

It's important to note that wage arrestment is a last resort for creditors and will only be used if all other attempts to recover the debt have failed. However, if you've been served with a court order for wage arrestment, it's important to act quickly as this should be seen as an extremely serious situation to be in.

What else can I do to stop a wage arrestment against me?

Another option is to put a formal debt solution in place. If your wages have been arrested, an advisable course of action could might be to enter into a formal debt solution such as a Trust Deed or Sequestration.

If your wages have been arrested, take action as soon as possible. Legally you must be provided with a warning before your wages are arrested, so this should give you the chance to make an alternative repayment agreement with the creditor. Formal debt solutions such as Trust Deeds or a Debt Arrangement Scheme should only be entered into under the supervision of a licensed debt professional.

Here at Scotland Debt Solution's our team of debt specialists can provide advice when it comes to preventing or challenging Earnings Arrestment Orders. Call us today on 0800 063 9250 to set up a no-cost, no-obligation consultation to get your debt problems under control.