How an Earnings Attachment Works

Dealing with an Attachment Of Earnings Following a CCJ

Nov 30, 2008 Asa Ghaffar

When a CCJ has been decided against a debtor, it is possible for the creditor to get an attachment of earnings order. What does an earnings attachment mean to the debtor?

Once a creditor has established a County Court Judgement or CCJ against the debt, it is possible for them to get an earnings attachment. An attachment of earnings gives the creditor the ability to deduct money from a debtors salary to repay outstanding debts. An employer can also deduct £1 for administering the earnings attachment.

When Can an Earnings Attachment Be Applied for By Creditors?

An earnings attachment can be applied for if one of the following situations apply:

A debtor has fallen behind with payments and a CCJ or County Court Judgement has been registered;
The debtor has an employer;
More than £50 is owed on the CCJ or County Court Judgement.

If a debtor is self employed or on benefits, it isn't possible for a creditor to apply for an earnings attachment.

What Forms Need to be Completed By the Debtor?

If the creditor applies for an attachment of earnings, the debtor is sent an N56 form that needs to be completed. This will ask for the following information:

Name, address and number of dependents;
Employer details, including name, address and payroll number;
A breakdown of all personal incomes and outgoings. It is important that this is completed accurately as this will be checked by the court for accuracy;
A list of any other debts and court orders that are held against the debtor.

The form has to be returned to the court within 8 days. If this isn't returned, County Court bailiffs will issue the debtor with the order. If this still isn't completed, the debtor will have to answer directly to the court. Failure to attend this results in arrest.

How Is the Information in the N56 Form Used?

The court cannot allow an attachment of earnings if a debtor's income is below the 'protected rate'. Up-to-date figures regarding what the 'protected rate' currently is should be attained directly from the court. Provided that the debtor's income is above the specified rate, the court will decide upon a figure based upon the information supplied in the N56 form.

Legal Right to Challenge an Earnings Attachment

If the debtor believes that the amount taken by an attachment of earnings is too high, they have 14 days to challenge the decision. This challenge should be sent in writing by registered post and a copy taken for personal records.

A private hearing will be arranged at the County Court with the District Judge. The debtor will then have the opportunity to explain why they feel that the earnings attachment has been set too high. Bring the photo copy of the challenge to the hearing along with any notes made.

What Happens to the Earnings Attachment if a Job is Changed?

It is important that the court is advised that an employment change has taken place. If the debtor doesn't inform the court this can result in a new earnings attachment being applied for by the creditor and further costs accrued. As the fee is £75, this is worth avoiding.

It is important to follow the rules when an earnings attachment is applied for by a creditor as not doing so only serves to make things worse. Try not to let debt problems get to this stage by speaking to a debt counsellor. There are a number of excellent debt solutions that could be utilised to deal with debt problems.

The copyright of the article How an Earnings Attachment Works in Personal Budgeting/Finance is owned by Asa Ghaffar. Permission to republish How an Earnings Attachment Works in print or online must be granted by the author in writing.

Dealing with an Attachment Of Earnings	How a CCJ Affects a Debtor	Earnings Attachments and How Pay Is Affected
County Court Judgements	Don't Let an Attachment of Earnings Sink the Ship