We are often asked by clients for advice on debt recovery. Obtaining a Payment Decree from the Court (or Order for Payment from the First-tier Tribunal Housing and Property Chamber) might be the first step. Once a Decree is granted, it is a matter for the creditor to pursue the debtor until money is actually recovered.

Earnings arrestments tend to be more successful than bank arrestments, due to uncertainty as to what funds might be in the debtor’s account on any given date.

With an earnings arrestment, providing the debtor is in employment and employer details are known, creditors can expect to recover a set amount towards the debt from every wage.

Exactly what can be recovered depends on the debtor’s earnings. The Scottish Parliament recently passed The Diligence against Earnings (Variation) (Scotland) Regulations 2023 which will take effect from 6^th April 2023.

If earnings exceed £21.56 per day/ £150.94 per week /£655.83 per month, a percentage of the earnings can be arrested. Exact deductions are calculated by the employer, according to the table below.

The Regulations have increased the level of earnings protected from arrestment and increases have been calculated by reference to the inflation rate between October 2020 and October 2022.

If the earnings of a debtor fluctuate, the amounts recovered will also vary. Earnings arrestments remain in place until the debt is repaid in full or the debtor’s employment ends. If their employment changes, a further arrestment could be served on the new employer.

If you believe a debtor is employed but you do not hold details, Sheriff Officers can be instructed to try trace the relevant details allowing an arrestment to be attempted.

TABLE A: DEDUCTIONS FROM WEEKLY EARNINGS

TABLE B: DEDUCTIONS FROM MONTHLY EARNINGS

TABLE C: DEDUCTIONS FROM DAILY EARNINGS

If you require specific advice on The Diligence against Earnings (Variation) (Scotland) Regulations 2023,  please contact our Debt Recovery Team.