Bankruptcy and Diligence etc. (Scotland) Act 2007

199 Simultaneous operation of arrestments against earnings where net earnings insufficient

(1) In section 58 of the 1987 Act (simultaneous operation of earnings arrestment and current maintenance arrestment), for subsection (2) substitute—

“(2) If on any pay-day N is less than S, the employer shall operate both the earnings arrestment and the current maintenance arrestment in accordance with subsection (3) below.

(3) The employer shall—

(a) for the purposes of section 47(1) of this Act, deduct the sum equal to—

(b) for the purposes of section 51(1) of this Act, deduct the sum equal to—

(4) In subsections (2) and (3) above—

• N is the amount of any net earnings in so far as they exceed the sum mentioned in subsection (2)(b) of section 53 of this Act for the number of days mentioned in subsection (2)(a) of that section;

• E is the sum which the employer is required to deduct under section 47(1) of this Act;

• C is the sum which the employer is required to deduct under section 51(1) of this Act; and

• S is the total of E and C.”.

(2) In section 63(5)(b) of that Act (sum payable under conjoined arrestment order including both ordinary debts and current maintenance), for “all the debts were current maintenance” substitute “the only debts were the current maintenance debts”.

(3) In Schedule 3 to that Act (disbursement under conjoined arrestment order)—

(a) in paragraph 4, for the words from “priority” to the end substitute “disbursement shall be in accordance with paragraph 4A below.”; and

(b) after that paragraph, insert—

“4A Where—

(a) only one of the debts is an ordinary debt, the creditor in that debt shall be paid the sum equal to—

(b) more than one of the debts is an ordinary debt, each of the creditors in those debts, out of the sum mentioned in sub-paragraph (a) above, shall be paid the same proportion of the amount of that creditor’s debt;

(c) only one of the debts is current maintenance, the creditor in that debt shall be paid the sum equal to—

(d) more than one of the debts is current maintenance, each of the creditors in those debts, out of the sum mentioned in sub-paragraph (c) above, shall be paid the same proportion of the amount of that creditor’s debt,

where—

• D is the sum deducted under subsection (5) of section 63 of this Act;

• E is the sum deducted under paragraph (a) of that subsection;

• C is the sum which would, if the only debts were the current maintenance debts, be deducted under subsection (3) of that section; and

• S is the total of E and C.”.