Attaching Earnings & Benefits

Table of Contents

New System of Attachment

The Civil Debt Procedures Act 2015 provides a general systems for enforcement of civil debts by attachment of earnings and deduction from social welfare payment. Provided that the debtor has capacity to pay, the attachment of earnings order requires the debtor\’s employer to deduct the specified sums and pay it to the creditor. In the case of their social welfare payments, the order is made to the Department of Social Protection.

A creditor who has first obtained judgment for money due may apply to the District Court for an order under the legislation. Notice of the application must be given to the judgment debtor in the prescribed form.

Statement of Means

The judgment debtor is obliged to provide information to the court in relation to his or her financial circumstances. On receiving notice of the application, he (the respondent to the application) is to file a statement of earnings with particulars of financial income and financial commitment.

In the case of a social welfare recipient, the respondent is required to obtain a certificate from the Department of Social Protection, verifying payments of which he is in receipt. The certificate is disclosed to the court only and not the judgment creditor applicant. The court may require further supporting documentation. The statement of means and Department of Social Protection certificate are admissible in evidence.

The statement of means shall be in such form as may be prescribed by rules of court, and shall specify the following:

whether the judgment debtor is a person to whom earnings fall to be paid and, if so particulars as to the judgment debtor’s earnings and expected earnings, ) the name and address of each employer of the judgment debtor, ) particulars to enable the employers to identify the judgment debtor, and whether any deductions are currently being made from the judgment debtor’s earnings in accordance with taxes and other legislation;
whether the judgment debtor is a person to whom net scheme payments are payable and, if so particulars as to the net scheme payments concerned, and whether any net scheme payments deductions are being made from the amount paid weekly under the scheme concerned and, if so, particulars as to the amount of such deductions;
whether the judgment debtor is in receipt of any other income other social welfare benefit;
the aggregate amount of all liabilities of the judgment debtor including any duty (moral or legal) to provide financially for members of his or her family or other persons;
whether the judgment debtor is obliged to make payments under a court order in force against him or her and, if so, particulars as to the payments concerned;
whether the judgment debtor is the subject of an insolvency arrangement and, if so, particulars as to the amount of the weekly or monthly payments to be made to the Insolvency Service of Ireland or, as the case may be, creditors under the arrangement;
such other information relating to the financial circumstances of the debtor as may be prescribed by rules of court.

Court Requirements

The court may, for the purposes of making a relevant order, require—

the judgment debtor to provide to the court, within a specified period, any necessary supporting documentation in relation to the information specified in his or her statement of means, and
a person appearing to the court to be an employer of the judgment debtor to give to the court, within a specified period, a statement signed by the person, or on his or her behalf, of specified particulars of the judgment debtor’s earnings and expected earnings.

The court may adjourn the application as it thinks reasonable, if it appears that the judgment debtor is likely to pay the debt within a reasonable period. The adjournment or suspension may be on such terms as the court specifies. The conditions may be changed and varied by the court, on application from time to time.

Court Order for Deductions

An attachment of earnings order and deduction of payments order may not be made in respect of the same judgment concurrently.

The court may make an order directing the judgment debtor’s e employer to deduct specified amounts from earnings and pay them in the manner specified. The debtor is be given an opportunity to make representations in relation to the application.

In making an order for the deductions, the court is to provide for and have regard to a normal deduction rate and a protected earnings rate. The Court may not make an order for attachment of earnings unless it is satisfied that the judgment debtor is entitled to the earnings and it is to have regard and that regard to his circumstances and in particular. his financial circumstances. Certain particulars are required to be specified in the order.

The order is to be served on the employer or the Department of Social Protection. . (1) Where an attachment of earnings order is made under section 10 , the judgment creditor concerned shall cause it to be served on the person to whom it is directed.

Making the Order

The order directs an employer of the judgment debtor to—

deduct from the judgment debtor’s earnings, at such times as are specified in the order, periodical deductions of such amounts (specified in the order) as may be appropriate, having regard to the normal deduction rate and the protected earnings rate specified in the order, and
pay the amounts so deducted, at such times as are specified in the order, to the judgment creditor.

Before deciding whether to make or refuse to make an attachment of earnings order, the court shall give the judgment debtor concerned an opportunity to make representations, including representations relating to whether the judgment debtor is a person to whom earnings fall to be paid.

For the purposes of making an order, the court shall assess, having regard to the statement of means furnished by the judgment debtor—

the rate, not exceeding the rate that appears to the court to be necessary for securing payment within a reasonable period of the judgment debt and any costs of an application in respect of the judgment debt concerned, at which the court considers it reasonable that the earnings to which the order relates should be applied in satisfying the judgment debt (the “normal deduction rate”), and
the rate below which, having regard to the needs of the judgment debtor and his or her particular circumstances, the court considers it proper that the relevant earnings should not be reduced by a payment made in compliance with the order (the “protected earnings rate”).

The court shall not make an attachment of earnings order unless it is satisfied that—

the judgment debtor is a person to whom earnings fall to be paid, and
having regard to the normal deduction rate and the protected earnings rate to be specified in the order, compliance with the order will leave a sufficient amount to the judgment debtor to maintain himself or herself and anyone dependant on him or her.

An attachment of earnings order may direct that the costs of an application in respect of the judgment debt concerned be included in the relevant total amount.

Matters to be Specified in Order

An attachment of earnings order shall specify the following particulars:

such information as the court has in its possession as would assist the employer in identifying the judgment debtor;
the amount of the judgment debt that remains due;
the relevant total amount;
the appropriate amount, having regard to the normal deduction rate and the protected earnings rate, that is to be periodically deducted from the judgment debtor’s earnings;
the normal deduction rate and the protected earnings rate;
the frequency at which the above amount is to be deducted;
the name and address of the judgment creditor to whom the amounts are to be paid;
the date on which the order shall cease to have effect.

Effect of Order

Payments under an attachment of earnings order shall be in lieu of payments of the like amount under the relevant judgment that have not been made and that, but for the attachment of earnings order, would fall to be made under the judgment.

The employer must give a deduction statement for each deduction. The order lapses if the employer ceases to be an employee.

Where attachment of earnings order is in force the judgment debtor must notify the creditor within 10 days of any increase of not less than €50 in earnings. There is provision for notification to the creditor in the event of the judgment debtor becoming employed or reemployed or of leaving employment and the case of employment and the reemployment, particulars of earnings or anticipated earnings are to be furnished.

Employer Issues I

Where an attachment of earnings order is in force, a judgment creditor who becomes aware that a person has become the employer of the judgment debtor concerned shall cause the following to be served on the person:

a copy of the attachment of earnings order, certified by or on behalf of the court to be a true copy of the order; and
a statutory declaration made by the judgment creditor stating the relevant total amount, and the amount of the relevant total amount that remains to be paid to the judgment creditor in compliance with the order.

The employer or Department is obliged to make the deductions. The obligation is not to commence earlier than 10 days after notice. A person to whom an attachment of earnings order is directed shall comply with its terms if it has been served upon him or her but is not liable for non-compliance before 10 days have elapsed since the service of the order.

If a person to whom an attachment of earnings order is directed is not the judgment debtor’s employer or ceases to be the judgment debtor’s employer, the person shall, within 10 days from the date of service or the date of cesser, give notice of that fact to the judgment creditor concerned.

The person to whom an attachment of earnings order is directed shall give to the judgment debtor a statement in writing of the total amount of every deduction made from a judgment debtor’s earnings in compliance with an attachment of earnings order.

Employer Issues II

If an employer affected by an attachment of earnings order ceases to be the judgment debtor’s employer, the order lapses insofar as that employer is concerned, except as respects deductions from earnings paid by the employer after the cesser and payment to the judgment creditor of deductions from earnings made at any time by that employer. The lapse of an order does not prevent its remaining in force for other purposes.

If the judgment debtor is not an employee of the person to whom the order is directed, the employee must notify the court.

Certain state and public sector bodies are deemed to be employers for the purpose of the legislation. In the event of doubt, the matter may be referred to the Department of Finance/ Public Expenditure and reform for assistance in determination by the court. The Minister\’s determination of the proper employer is deemed admissible in evidence.

A new employer of the judgment debtor who knows that an attachment of earnings order is in force, must notify the judgment creditor in writing that he or she is the employer or provide details of the debtor\’s earnings and expected earnings.

The court on application by the employer, debtor or creditor may determine whether particular types of payments are earnings for the purpose of the legislation. The employer need not make deductions in such event until the application is determined.

Attaching Social Welfare Benefits

The court on application may make an order directing the Department of Social Protection to deduct specified amounts from the judgment debtor\’s income payments in the manner set out in the order. The debtor must be first given an opportunity to make representations..

Deductions may not be ordered unless the court is satisfied that the debtor is a person to whom scheme payments as defined, fall to be paid. Regard must be had to the debtor\’s particular circumstances including financial circumstances. Certain particulars are to be specified in the order.

The Minister for Social Protection must comply with the order as soon as practicable. Deductions may not be made to the extent that they would cause the net scheme payments to the judgment debtor to fall below a certain level. The Department must, if requested by the judgment debtor, furnish a statement of the total deductions made in compliance with the order.

When a deductions order is in force, the judgment debtor must notify the court and the creditor of significant changes in her net scheme of payment or if he or she becomes employed.

Order I

The court order made on foot of an application under the above provisions directs the Minister for Social Protection to—

deduct, from the net scheme payments paid to the judgment debtor, at such times as are specified in the order, such amounts as are specified in the order, and
pay the amounts so deducted at such times as are specified in the order, to the judgment creditor.

Before deciding whether to make or refuse to make a deduction from payments order, the court shall give the judgment debtor concerned an opportunity to make representations, including representations relating to whether the judgment debtor is a person to whom net scheme payments fall to be paid.

The court shall not make a deduction from payments order unless it is satisfied that—

the judgment debtor is a person to whom net scheme payments fall to be paid, and
having regard to the particular circumstances of the judgment debtor, compliance with the order will leave a sufficient amount to the debtor to maintain himself or herself and anyone dependant on him or her.

A deduction from payments order may direct that the costs of an application in respect of the judgment debt concerned be included in the relevant total amount.

Order II

A deduction from payments order shall specify the following particulars:

the name and address of the judgment debtor;
the amount of the judgment debt that remains due;
the relevant total amount;
the amounts to be deducted, on a weekly basis from the net scheme payments paid to the judgment debtor;
the number of weeks (which shall not exceed 50 in any calendar year) during which the deductions are to be made;
the name and address of the judgment creditor to whom the amounts are to be paid;
the period, commencing on the date on which the order takes effect for which the order shall have effect.

The court, on making a deduction from payments order under this section, shall make an order directing the judgment debtor, within the period specified in the order, to furnish his or her personal public service number, together with a copy of the order, to the Minister for Social Protection.

A deduction from payments order shall take effect on the date on which the first deduction from the net scheme payments paid to the judgment debtor is made by the Minister for Social Protection in compliance with the order.

Payments under a deduction from payments order shall be in lieu of payments of the like amount under the relevant judgment that have not been made and that, but for the deduction from payments order, would fall to be made under the judgment.

Deduction Order Issues

Where a deduction from payments order is made , the judgment creditor concerned shall cause it to be served on the Minister for Social Protection.

Where a deduction from payments order is served upon him or her, the Minister for Social Protection shall, as soon as practicable thereafter make deductions of the amount specified in the order by the court from the net scheme payments paid to the judgment debtor and pay the amounts so deducted to the judgment creditor.

The Minister for Social Protection shall not, in compliance with such an order, make deductions to the extent that the deduction has the effect of reducing the payment to the judgment debtor of the net scheme payments concerned below certain minimum amount determined by reference to Social Welfare legislation.

The judgment debtor concerned may, where the order ceases to have effect, request from the Minister for Social Protection a statement showing the total amount deducted in compliance with the order concerned, and the Minister for Social Protection shall comply with such a request.

There is provision for application to court to vary an attachment of earnings order or the deductions from payments order. It may be made on the application of the debtor or creditor. The Minister for Social Protection is to be party to the application, where applicable.

At any time while a relevant order is in force, the judgment debtor may elect to pay the amount of the relevant total amount that remains to be paid in compliance with the order and, on so doing the order shall cease to have effect, and the judgment creditor shall give notice in writing to the employer concerned or, as the case may be, the Minister for Social Protection, of such cesser.

Variation or Discharge

A judgment debtor, while a relevant order is in force, may, on notice to the judgment creditor concerned, apply to the court for the variation of the order where the judgment debtor considers that compliance with the order will not leave a sufficient amount to him or her to maintain himself or herself and anyone dependant on him or her, as a result of the earnings that fall to be paid or, as the case may be, the net scheme payments that are payable to him or her, having decreased, or his or her circumstances having otherwise changed. The application is to be accompanied by a statement of means completed by the judgment debtor.

A judgment creditor, while a relevant order is in force, may, on notice to the judgment debtor concerned, apply to the court for the variation of the order where the earnings that fall to be paid or, as the case may be, net scheme payments that are payable to the judgment debtor have increased. The judgment debtor concerned, on receipt of such notice, shall within such period as may be prescribed by rules of court, complete and furnish to the court a statement of means.

The court may, on an application if it thinks fit, make an order varying a relevant order, and a reference in this Act to an attachment of earnings order, a deduction from payments order or a relevant order shall include a reference to such an order as varied under this section.

The court may, on such application make an order discharging a relevant order where it is satisfied that compliance with the order, or with the order as varied under this section, would not leave a sufficient amount to the judgment debtor to maintain himself or herself and anyone dependant on him or her.

Where the court makes an order the judgment creditor concerned shall cause it to be serve d on the employer concerned or, as the case may be, the Minister for Social Protection.

Cessation of Order

A relevant order shall cease to have effect on the earlier of the following:

when the terms of the order have been complied with by the person to whom it is directed and the relevant total amount has been paid to the judgment creditor in accordance with the order; or
on the date specified in the order as the date on which it ceases to have effect.

Where a relevant order ceases to have effect under the above provision and on the date on which it ceases to have effect, an amount of the relevant total amount remains to be paid to the judgment creditor, the judgment creditor may make an application to the court in respect of the amount that remains to be paid, and such an application shall be deemed to be an application under the above provisions..

Such application shall be in such form as may be prescribed by rules of court, and shall be accompanied by a

copy of the relevant order, and
statutory declaration made by the judgment creditor stating the amounts that have been paid to him or her in compliance with the relevant order, and the amount of the relevant total amount that remains to be paid to him or her.

Any attachment of earnings orders in force under the older 1926 legislation as amended in 2009 is to lapse by the making of an attachment of order or earnings order or deductions from payments order on to the legislation.

General Issues

There is provision for the sequence in which deductions are to be applied under attachment and deduction orders are to be applied.

There are penalties for making false and misleading statements and provision for breach of legislation for contravention of the legislation. Most are subject on summary conviction to a class C fine. Some are subject to Class E fines.

The Minister for Social Protection may prescribe relevant social welfare schemes for the purpose of deduction orders.

If a judgment creditor as a result fails to obtain a sum of money due under a relevant order, the judgment creditor may sue for the sum as a simple contract debt in any court of competent jurisdiction, and the court may order the person to pay the judgment creditor such amount as in all the circumstances the court considers proper.

Part 1 and 4 of the Debtor\’s Ireland Act 1872 were repealed by the 2015 Act.