Following an issue of a Summons, a lender can then obtain a judgment against you. This will usually be in the County Court. Although a County Court Judgment does not entitle the lender any special ability to obtain repayment, it does mean that the Court has adjudged that the monies are legally due. This process is known as obtaining an Attachment of Earnings Order.
During procurement of repayment, a lender must apply to the court to take one of a series of actions known as 'remedies after judgment'.
Remedies after judgment include:
One of the most popular remedies after judgment is applying for an Attachment of Earnings Order. Lenders can apply for an attachment of earnings order AND any other remedy or remedies they choose. The only thing stopping lenders from using every single remedy after judgment is the prohibitive cost of each one.
An Attachment of Earnings Order is served on your employer who must (by law) deduct the specified sum from your earnings. They must also pay this to the Court, which will in turn pay it to the lender.
The Courts will not grant an Attachment of Earnings Order to anyone who is self-employed, in HM Forces, or a merchant seaman. If you move jobs, the Attachment of Earnings Order does not automatically follow you to your new employer. Instead, the lender must apply to the Court for the Attachment of Earnings Order to be applied to your new employer.
On approval, the Court sends you a form to help it decide how much to deduct from your pay. It is strongly in your interests to fill this form out carefully and to return it promptly. Although unlikely, it is possible that you could be jailed for failure to return an Attachment of Earnings Enquiry Form.
Attachment of Earnings Orders do not appear on credit reports. However, the underlying judgment is recorded, and that is automatically removed after six years.