An Attachment of Earnings Order (AEO) is an effective way to recover debts from an employed debtor. If the debtor refuses to pay voluntarily, the court can order their employer to deduct money directly from their salary.
At Talbots Law, we guide clients through the Attachment of Earnings Order process, ensuring payments are collected efficiently.
How Does an Attachment of Earnings Order Work?
Once granted, an AEO requires the debtor’s employer to:
- Deduct money from the debtor’s wages each payday.
- Send payments to the court, which then forwards them to you.
The order remains in place until the debt is cleared.
How to Apply for an Attachment of Earnings Order
To apply, you must:
- Complete Form N337 and pay a court fee.
- The court will contact the debtor with a statement of means for completion and to propose an instalment plan.
If the debtor fails to respond, the Court will send a follow-up request that includes a contempt notice. The Court will also contact the debtor’s employer to confirm employment and salary details.
- If the debtor does not offer a payment plan, the court will issue an Order for Deductions. The employer must comply or face a fine.
This method is ideal for employed debtors but does not apply to self-employed individuals.
Supporting your Debt Recovery Challenges
Recovering unpaid debts can be a frustrating and time-consuming process, particularly if you are unfamiliar with the legal procedures involved. As experienced civil litigation lawyers, we have put together a clear, step-by-step guide to help individuals and businesses understand the debt recovery process in England and Wales.
Our series of comprehensive articles will walk you through each stage, from initial communication with the debtor to enforcement of a court judgment.
For further information and guidance, read the full series:
- Step 1 – Contacting the Debtor
- Step 2 – Sending a Letter Before Action (LBA)
- Step 3 – Issuing a County Court Claim
- Step 4 – Default Judgment & The Debtor’s Response
- Step 5 – Enforcing a County Court Judgment
- Step 6 – Warrant of Control: Sending Bailiffs to Recover a Debt
- Step 7 – Writ of Control and HCEOs
- Step 8 – Charging Orders and Orders for Sale
- Step 10 – Third-Party Debt Orders
- Step 11 – Preventing Debt Issues
Expert Legal Advice
We handle Attachment of Earnings Order applications swiftly, ensuring your debt is repaid without delay.
Our debt recovery product, Talbots Collect, is a fixed-fee debt recovery product specifically focussed on business-to-business debts that is fast, simple, and delivered at a competitive price. If you would like to speak with one of our debt recovery experts, please complete the form below.
Disclaimer
The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional. The contents of this blog refers to the process in England and Wales.
This blog was written by Tessa Rhodes, Associate & Debt Recovery Manager, in our Dispute Resolution Team.