The Accountant in Bankruptcy has accounced changes to the The Debtor Scotland Act 1987, Schedule 2, which sets out the amount that can be deducted from a debtor’s wages in an earnings arrestment.
An earnings arrestment is when a debtor’s employer receives an instruction to deduct an amount from an employee’s wages and pays it direct to their creditors.
Following a scheduled Ministerial review, the the deduction tables will be amended with effect from 6 April 2013 by The Diligence against Earnings (Variation) (Scotland) Regulations 2012.
This change also alters the Protected Minimum Balance in bank arrestments. The PMB sets out a minimum amount which is protected from arrestment and provides important protection for those who may have their bank account arrested. The PMB will increase from £415 to £460.06.
Further information will be posted on this Accountant in Bankruptcy’s website about the changes to diligence against earnings before they come into force on 6 April 2013. Click here for more information