What is a wage arrestment?
In the UK, wage arrestments – or earnings arrestments – are a legal channel which creditors can use to recover any money that may be owed to them.
They enable creditors to recoup their debts directly from your pay. It works by deducting money from your wage before it has a chance to hit your account. Usually, it’s deducted on a daily, weekly or monthly basis.
Your employer has no option other than to comply with the wage arrestment, as it’s a court order.
Normally, wage arrestments continue to be taken from your wage until you’ve cleared your debts in full, this is inclusive of any legal costs which may have been incurred as a result of your creditors attempting to recover the money that they’re owed.
The wage arrestment process
A borrower must have been issued with a court order for a creditor to carry out a wage arrestment.
However, a Charge for Payment must be served to you before a court order is granted. This means that you have 14 days to pay your debt in full before a wage arrestment can be enforced.
How can I stop wage arrestments?
You do have options that a creditor will consider before they arrest your wages.
Some of the most effective solutions to combatting wage arrestments include IVAs and bankruptcy. If you enter one of these solutions you’ll be legally protected from your creditors, meaning they can’t chase you for money or arrest your wages. They’ll also have to cover the legal costs they incurred from attempting to recoup the money.
If the wage arrestment has already been ordered, entering into a debt solution is the only way that you can prevent pay being deducted directly from your wages. There is no one shoe fits all solution that we can guarantee will help. Every solution has its own pros and cons, all of which must be considered because everyone’s situation is unique. But ultimately, certain debt solutions will enable you to stop wage arrestments.
If you’ve been served with a charge of payment, wage arrestments, or you’re just worried about your debts, fill in our quick form to find out which solutions could be of use to you, explained to you by industry experts – for free.