An Attachment of Earnings Order is a payment order set by a judge at the County Court.
It can only be issued if you are employed and owe more than £50 to your creditors. The Attachment of Earnings Order lasts until the debt is satisfied in full.
An Attachment of Earnings Order is awarded to a creditor when previous payment agreements have failed. It is presented to your employer and they are bound to deduct the payment from your wages then send the money to the court.
You will be sent a N56 form which you must complete and return to the court.
The N56 form is a means based form so you will be required to provide your name, address, employment details, your in-comings and outgoings, how many dependents you have and any other creditor commitments you have.
The form allows you to offer a figure you can afford, you should complete this but be sure to include details of any other creditors and their payments you may have.
The court may agree to issue a Suspended Attachment of Earnings Order if they feel that your employment prospects will be impaired if your employer becomes aware of the original Earnings Order. In this case you will be obliged to make the payments yourself direct to the court. If you were to miss any payments the original order would then be acted on and your payments would then be taken at source.
If you disagree with the order you should write to the court, keeping a copy of your letter, and explain your reasons for objection. A judge will then set a date for you to attend the court and make your case. You should attend taking all documents relevant to your case, including evidence of how you have worked out your budget.
The Attachment of Earnings Order remains active if you change employment. If you change jobs you must inform the court of your new employer details. Failure to do so is a criminal offence subject to a fine or prison sentence. The Attachment of Earnings Order will stay in place until the debt is satisfied.
If you are having financial difficulties and would like to speak to an experienced debt adviser call 0800 088 7503 or visit My IVA Adviser and request any of our free guides designed to help you get out of debt.
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