An Application is made to Court. The Court will then send out to the debtor a request to provide details of the debtor’s income and expenditure. The debtor will also be asked to make an offer of stage payments. The Court will return to the creditor in order to discuss the stage payments but will make any Order that it sees fit. This will typically be for an Attachment of Earnings Order. The monies are deducted from the employee’s wages by the debtor’s employee at source and then passed on to the centralised Attachment Earnings Scheme in Northampton who will collect those monies and pay them to the creditor. The disadvantage of this scheme is that it can only work if the debtor has an employer.

Filed under: BANKRUPTCY

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