Section 157 — District Court Act 2016: Effect of attachment orders

157 Effect of attachment orders (1) An attachment order must direct that the money due and payable under the judgment or order being enforced is, by way of such amounts and in relation to such earnings period as are specified in the attachment order, a charge on any salary or wages that from time to time while the attachment order is in force become due and payable by the employer to the judgment debtor. (2) The charge created— (a) accrues from earnings period to earnings period, and on the day of the earnings period specified in the order; and (b) attaches to all salary or wages that become due by the employer to the judgment debtor at any time while the attachment order is in force, whether or not the contract of employment in respect of which the salary or wages so become due existed at the date of the attachment order; and (c) is subject to any charge created by an attachment order under the Family Proceedings Act 1980 or the Summary Proceedings Act 1957 and to any item referred to in subsection (5)(a) and (b) (whether created, issued, or authorised before or after the date on which the order referred to in subsection (1) was made); but (d) prevails over and has priority to any assignment or charge created by the judgment debtor (whether before or after the making of the attachment order under this Act) so that the attachment order has the same effect as if no such assignment or charge had been made or created by the judgment debtor. (3) Despite subsections (1) and (2), no attachment order is to operate so that, when its effect is considered either alone or with the effect of any item referred to in subsection (5), the net amount paid to a judgment debtor for an earnings period is below the protected earnings rate for the earnings period and, where necessary, the amount to be deducted from the judgment debtor’s salary or wages for the earnings period is treated as being reduced or cancelled accordingly. (4) Nothing in section 84 of the Social Security Act 1964 applies to an attachment order. (5) The items are— (a) a deduction notice under the Child Support Act 1991 , the Family Proceedings Act 1980 , the Social Security Act 1964 , or the Tax Administration Act 1994 : (b) a deduction for the recovery of payments under section 86 of the Social Security Act 1964: (c) a charge created by an attachment order under this or any other Act. (6) In this section,— net earnings , in relation to an earnings period, means the balance left after deducting from the judgment debtor’s salary or wages for the earnings period the amount of tax required to be withheld or deducted in accordance with the PAYE rules of the Income Tax Act 2007 if the salary or wages are the only salary or wages paid to the judgment debtor by the employer for the earnings period protected earnings rate , in relation to an earnings period, means the higher of— (a) 60% of net earnings for the earnings period; and (b) the amount or percentage referred to in section 156(d) . Compare: 1947 No 16 s 84I