An attachment of earnings is where your employer is told by the court to pay a percentage of your income to the creditor. This money is paid directly to the company you owe money to and because it’s a court order they must abide by the rules. If you are solely in receipt of benefits then you can still have a percentage of your benefits arrested at the source.
Before an attachment of earnings is imposed there will be a County Court Judgement (CCJ) instated requesting you to repay the debt. If you fail to pay the debt then an attachment of earning can be placed. The best option is to negotiate the debt before the attachment of earnings is created.
Can an IVA lift an Attachment of Earnings?
When an attachment of earnings is placed upon you it can quickly reduce the amount of money you have available to pay towards your debts. This means it can be difficult to repay other debts, making it difficult to live. The financial constraint can place additional stress on families but there are ways to lift an attachment of earnings.
You cannot ask for an attachment of earnings to be lifted as this request will be rejected. Your employer will have to make the payment to the creditor, even if you don’t wish them to.
Lifting an Attachment of Earnings
You can have an attachment of earnings lifted by entering a formal debt solution like an IVA or bankruptcy. This means that the money you were paying towards your one debt can be used towards all of your creditors, making it fairer for all and enabling you to become debt free.
Within informal arrangements your creditors are not duty bound to lift the attachment of earnings. However, formal debt solutions will offer some assistance.
Before you enter an IVA or Bankruptcy you must get professional debt advice. Debt Support Trust is a registered charity providing a range of debt advice including debt mangement plans, IVA’s and Bankruptcy help. We have helped thousands of people resolve their money problems across the UK and we’re best placed to help you become debt free and lift a wages arrestment.
You can call Debt Support Trust on 0800 085 0226 for help from a registered money adviser, or complete the enquiry form and we’ll call you back.