Earnings arrestment is a form of diligence frequently taken by creditors in Scotland to recover unpaid debts. It involves taking money directly from the wages of a debtor who has failed to adequately deal with their debt. This is done through an Earnings Arrestment Order (EAO) which is given to your employer and instructs them to deduct a given percentage of your wages and pay this money to the sheriff clerk who will then administer this payment to your creditor(s).
o Between £529.90 and £1,915.32 – An amount of £15.00 or 19% of earnings above £529.90, whichever is higher.
o Between £1,915.32 and £2,879.52 – An amount of £263.23 plus 23% of earnings above £1,915.32.
o Above £2,879.52 – An amount of £485.00 plus 50% of earnings above £2,879.52.
These figures are based on monthly net income amounts; there are alternative calculations if you are paid on a weekly or daily basis. In addition to these figures, employers can also subtract an additional £1.00 every time a deduction from your salary is made in order to cover the administrative costs incurred on their behalf.
As with most debt issues, it is highly advisable to take action at the earliest possible opportunity as this means there will be many more options open to you. Before your wages are arrested, you will not only be given warning of this, but also the opportunity to come to an alternative arrangement such as agreeing to a Time to Pay (TTP) plan. If this is not suitable in your circumstances then a more formal debt solution such as a Trust Deed or Debt Arrangement Scheme (DAS) may be more appropriate. Formal debt solutions can only be entered into under the guidance of a licensed professional, so taking expert advice at this time is crucial.
Scotland Debt Solution’s team of debt specialists have helped countless individuals across Scotland get a form hold of their personal finances and work their way out of debt. We can advise across a range of formal debt solutions including sequestration, DAS, and Trust Deeds. Call our expert team today on 0800 063 9250 to arrange a completely free no-obligation consultation and take your first step towards a debt-free future.
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Our Scottish based team can help advise you on your debt problems.