Changes to earnings arrestment deductions & protected minimum balance (PMB) come into force on 6th April 2013

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.