When creditors are owed money they will first contact you to request the payment. If you fail to agree to the payment then the creditor in Scotland may approach your employer and request a wages arrestment. This is where the creditor will be given access to speak with your employer and receive a percentage of your income directly from the employer. So, what happens with a wages arrestment in a Trust Deed?
Lifting a Wages Arrestment in a Trust Deed?
If you decide that a Protected Trust Deed is the right debt solution for you, but have a wages arrestment, then it’s important you know where you stand on having the arrestment lifted. A wages arrestment can be removed by a creditor but it’s their decision on whether they wish to do so.
If a creditor refuses to lift the wages arrestment then this debt cannot be included in the Scottish Trust Deed and you would have to continue to pay this debt independently of the debt solution payment.
Depending on the level of debt involved, it may be preferrable to consider entering a DAS or a sequestration. Some creditors are known for refusing to lift an earnings arrestment and we can help you understand if this were to be the case.
Council Tax Wages Arrestment
Most local councils will approach employers if you fail to pay. They will contact you first and send debt collector letter first, but if that doesn’t work then they will request permission to take the money directly from your salary. This means your employer will be aware you have money problems. Whether you need debt help in Glasgow or a Trust Deed in Edinburgh, we can help you across Scotland.
Local councils usually accept a Trust Deed proposal, however, if there is an earning arrestment in place then the majority of councils will not lift this. It can mean the Protected Trust Deed is not the best solution for you and you could be better suited to a different debt solution.
If you are not sure whether you are suitable for a Trust Deed, or if it’s your best solution, then speak to our charity money advisors. You can call Debt Support Trust on 0800 085 0226 or complete a debt analyser to help you understand which solution is best for you.