Sharon McDougall - Updated - 10th March 2025 - 2 minutes to read
Whilst the rules and terminology may differ in other parts of the United Kingdom, in Scotland there are seven different types of Wage Arrestments that those struggling with unmanageable debt should know about.
These seven types are:
Each of the seven types of wage or earnings arrestment in Scotland differ in that they entail different procedures, can be used for different types of debt and the agencies that enforce them are also distinct. However, what they all have in common is that money will be taken directly from your earnings in order to repay your debts.
If you’re in a situation whereby your wages have been arrested it’s crucial to establish the form of arrestment being used against you, as this will dictate how to resolve the matter.
Get a rough indication of what your repayments might be under each of our different debt solutions.
What are Earning or Wage Arrestments?
Earning Arrestments or Wage Arrestments can be used to recover debts such as Council Tax arrears, HMRC tax debts, landlord guarantees, or credit union debts. Wage Arrestments are also frequently used to recover overpayments of benefits.
Specified legal amounts can be taken from a debtor’s daily, weekly or monthly wage in order to repay a debt by way of an Earning Arrestment.
For an Earning Arrestment to be put in place, a Charge for Payment has to be served first by Sheriff Officers and the debtor then has a two week (14 day) grace period in which to pay off the debt in full. If the debt is still unpaid after that 14 day period an Earning Arrestment can be set in place.
The total maximum amounts an employer can take from an employees wages to repay a debt by Earning Arrestment each day, week or month depends on what the individual is earning and is clearly specified by the government.
An employer cannot legally refuse to deduct the amount requested from your wages so long as the order has been served by a Sheriff Officer.
While employers must comply with the wage arrestment order, you can halt it by either paying off the debt in full, or else entering into an alternative debt repayment solution such as a Debt Arrangement Scheme, Protected Trust Deed or Sequestration.
In the case of a Conjoined Earning Arrestment, this could be put in place by multiple (two or more) creditors seeking repayment of debt from an individual.
As opposed to being managed by a Sheriff Officer, Conjoined Earning Arrestments are managed by the Sheriff Clerks of Sheriff Courts. They exist to simultaneously serve the interests of creditors who might otherwise be in competition in the pursuit of debt recovery.
With a Conjoined Earning Arrestment, two or more creditors can arrest wages together and the funds are then distributed to them from the employer via the Sheriff Clerk. The total amount being taken from the wage payment of the debtor does not increase, as the overall maximum permitted amount to be deducted remains the same as with a standard Earning Arrestment. The deducted funds are simply divided up between the creditors.
The legal procedures to challenge or halt Conjoined Earning Arrestments are in essence the same as with singular Earning Arrestments. The issue you may face here, however, is that you will need to repay multiple debts in order to have the Wage Arrestment stopped.
This is where entering into a formal debt solution could prove to be beneficial.
Direct Earning Attachments are utilised to recoup overpayments of benefits by the DWP (Department for Work and Pensions) and by Local Authorities.
The maximum amount that can be deducted per month or week at the Standard Rate is 20%, whilst there is a Higher Rate of 40% which is less commonly used.
No court order is needed for Direct Earning Arrestments to be set up, so they are not enforced by Sheriff Officers or Sheriff Clerks.
Direct Earning Arrestments have less priority than standard Earning Arrestments, so when an Earning Arrestment is in place it takes precedence over a Direct Earning Arrestment.
Importantly, a debtor cannot be left with less than 60% of their net earnings after the arrestment deductions.
Debtor Contribution Orders are used against individuals who have been made bankrupt and in the instance that the Accountant in Bankruptcy is of the opinion that the debtor can afford to make some repayments towards their debts.
If a bankrupt debtor will not willingly make debt repayments a Debtor Contribution Order could be served to their employer, instructing them to deduct a specified quantity that the Order states the debtor ought to be paying.
Payment Instruction to Employers can be issued by Trustees in Protected Trust Deeds, instructing an employer to take contributions directly from a wage or salary payment in order to make repayments to the Protected Trust Deed.
The permitted amount that can be taken is defined by what the Protected Trust Deed Trustee believes the debtor is able to afford. This amount can be disputed by the debtor and the Trustee must then review the case, with the Accountant in Bankruptcy ultimately able to interject if an agreement on the amount cannot be reached by the debtor and the Trustee of the Protected Trust Deed.
Current Maintenance Arrestments are used if a Maintenance Order payment plan has been defaulted on.
Maintenance Orders may be for the support of a partner following an annulment or dissolution of a civil partnership or marriage. Maintenance Orders may also be for the ongoing financial maintenance of children following a separation.
Sheriff Officers execute Current Maintenance Arrestments and they apply to arrears on missed payments of a Maintenance Order only.
Ongoing Maintenance Order payments will remain due by the usual payment method, even once a Current Maintenance Order is in place.
Debt Arrangement Schemes and Protected Trust Deed or Sequestration (Bankruptcy) can be used to stop Current Maintenance Arrestments.
The CSA (Child Support Agency) or the CMS (Child Maintenance Service) can make Deduction from Earning Orders (DEO) against parents of children who do not cohabit with the children and who have stopped paying child maintenance, or are in arrears on child maintenance.
Deduction from Earnings Orders can be sent to the employers of parents in arrears on child maintenance payments in order to deduct a sum from their earnings. DEOs can comprise two elements, e.g. one calculated against the amount the parent should be paying in child maintenance and one relating to an amount to be paid towards arrears.
Again the CSA or the CMS must ensure that the parent the DEO is being used against is still left with at least 60% of their net earnings.
If you are subject to a wage or earnings arrestment order, you may be considering entering into a formal debt agreement in order to deal with your current problems.
A formal debt solution such as a Trust Deed or Debt Arrangement Scheme (DAS), could help you deal with all of your debts, including those associated with the current wage arrestment you have against you.
Contact the experts at Scotland Debt Solutions to better understand the options available to you and begin your journey towards a debt-free future.
Sharon McDougall
Manager
A Trust Deed can be a viable alternative to sequestration for individuals in Scotland with unmanageable and unsecured debts of over £5,000.
Getting out of debt is difficult enough at the best of times, but when you’re on a low income, it can feel like an uphill battle.
If you’ve decided it’s time to close your limited company, there are several different routes you can take. The most appropriate closure method will depend on whether your business is solvent (can...
About
Why Choose Us
Speak Direct With
A Qualified Adviser
We Don't Operate
Call Centres
5 Offices in Scotland
National Coverage
Ask us About
Home Visits
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Out of Debt Since 1989
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Tools
Useful Tools
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
We have five offices located across Scotland. Find your nearest one here.
OUR SERVICES
We can help you with...
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts
Find out MoreA Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.
Find out MoreA Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.
Find out MoreWhether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC
Business Debts in ScotlandOur Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
We have FCA authorisation for advice relating to Debt Arrangement Schemes and we are regulated by the ICAS and IPA when giving advice as an insolvency practitioner leading to our appointment in formal insolvency proceedings
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.