Q&As

Are settlement payments classed as earnings under attachments of earnings?

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Published on LexisPSL on 25/03/2021

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Are settlement payments classed as earnings under attachments of earnings?

Are settlement payments classed as earnings under attachments of earnings?

A judgment creditor can seek to enforce their judgment debt by applying for an attachment of earnings (AE) Order which, in effect, directs the judgment debtor’s employer to pay a certain portion of the judgment debtor’s salary or wages to a collecting officer for payment on to the judgment creditor. AE Orders are governed by CPR 89 and the Attachment of Earnings Act 1971 (AtEA 1971).

AtEA 1971, s 24 provides

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