PART IIIS DILIGENCE AGAINST EARNINGS

Supplementary provisionsS

72 Effect of sequestration on diligence against earnings.S

(1)This section shall have effect where a debtor’s estate is sequestrated.

(2)Any existing earnings arrestment, current maintenance arrestment or, subject to subsection(3) below, conjoined arrestment order [F1or deduction from earnings order under the Child Support Act 1991] shall cease to have effect on the date of sequestration.

(3)Any sum paid by the employer to the sheriff clerk under a conjoined arrestment order on a pay-day occurring before the date of sequestration shall be disbursed by the sheriff clerk under section 64 of this Act notwithstanding that the date of disbursement is after the date of sequestration.

[F2(3A)Any sum deducted by the employer under such a deduction from earnings order made before the date of sequestration shall be paid to the Secretary of State, notwithstanding that the date of payment will be after the date of sequestration.]

(4)The execution of an earnings arrestment or the making of a conjoined arrestment order shall not be competent after the date of sequestration to enforce a debt in respect of which the creditor is entitled to make a claim in the sequestration.

[F3(4A)A deduction from earnings order under the said Act shall not be competent after the date of sequestration to secure the payment of any amount due by the debtor under a maintenance assessment within the meaning of that Act in respect of which a claim could be made in the sequestration.]

(5)In this section “date of sequestration” has the same meaning as in section 12(4) of the M1 Bankruptcy (Scotland) Act 1985.