question category: Misc. Debt

What does Arrestment mean?
Submitted on: 5th Nov 2008 by Non-Member | Total Answers: 1

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Arrestment

Arrestment means that money or goods that you own are claimed and held by a third-party.

Two examples of Arrestment are:

Earnings Arrestment
Here a court order or decree allows money to be taken directy from your wages by your employer to repay your debts. Your creditor will send the earnings arrestment to your employer.

The deductions will need to be made every pay day in the same way that tax is taken off your wages or salary. Your employer then needs to send the money deducted to the creditor who served the earnings arrestment.

Bank Arrestment
Here any money held in your bank, building society or savings account is frozen. Once your creditors have gone to the courts to force your bank to release the money held it can be used to repay your creditor. You will not be able to get access to your account once the bank arrestment has happened even if the amount you owe is less that what is in the bank.

Submitted on: 5th Nov 2008 by TA Member

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