If an Attachment of Earnings Order (AEO) is in place, a debtor’s income is reduced at source before their income is paid out to them.
An Attachment of Earnings Order (AOE) instructs the debtor’s employer to deduct the awarded payment out of the debtor’s income when there has been a history of non payment.
An ‘Attachment of Earnings Order’ (AOE) is awarded to a creditor who has a County Court Judgement for a debt which the debtor has continually been unprepared to pay contributions to.
An Attachment of Earnings Order (AOE) can substantially decrease the amount of disposable income a debtor may have available to service their other debts, because the Order gives priority and preference to the repayments due to the creditor that holds the Order.
Individual Voluntary Arrangement’s (IVA) affect an ‘Attachment of Earnings Order’ (AEO) by overriding the Order.
This in turn means that the net income of the debtor is increased by the size of the Attachment, and therefore the debtor’s disposal income increases, subsequently increasing the debtor’s ability to contribute into an Individual Voluntary Arrangement (IVA).
Because an Individual Voluntary Arrangement (IVA) takes care of all unsecured creditors without showing any preferences, each creditor is able to share equally from the increase in payments to the Individual Voluntary Arrangement (IVA).
If you have an Attachment of Earnings Order (AOE) against you, and you believe that you qualify for an Individual Voluntary Arrangement (IVA), then you need to call My IVA Adviser straight away.
My IVA Adviser specialise in helping people enter into IVAs. Call us now for a ‘no obligation’ IVA consultation.
Call 0800 088 7503 and speak to one of our advisers or leave your contact details at our quick contact page so that we can call you back.
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