An earnings arrestment is a debt-recovery tool that creditors may use to obtain payment from debtors in the United Kingdom. It bears similarities to wage garnishment in the United States; the creditor contacts the debtor's employer to have a portion of his earnings withheld for repayment of the debt. Although the creditor must notify the employer, it does not have to notify you.
Notification
After securing the proper authorization from the court, the creditor provides your employer with an earnings arrestment order, which legally requires the employer to withhold a portion of your wages and send the funds directly to the court for payment toward the debt. The employer will typically notify you if it receives such an oOrder, but it is not legally obligated to do so.
Length of Earnings Arrestment
Once your employer has received an earnings arrestment order, it must advise the court whether you are paid weekly, biweekly or monthly, and must divulge the date of your next payday. It must also tell the court how much it will deduct from your next paycheck, and how it arrived at that amount. Once the employer complies with the order, the arrestment continues until the debt and any court costs are paid. There is no set time limit for an arrestment order.
Earnings Arrestment Amount
The amount that the employer must deduct from your wages is mandated by the Debtor's Act of 1987. This act establishes tables that state the required withholding amount based on your income bracket.
Considerations
An employer that does not comply with an earnings arrestment order may be liable for all amounts that it should have withheld from your earnings. Also, an employer can legally terminate you if you are subject to an earnings arrestment.
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