The Act Part 1 – the Debt Arrangement Scheme Section 6 – Deduction from earnings
21.Section 6 provides for deduction from earnings under the terms of a debt payment programme. It is anticipated that, subject to consultation, the regular payments to be made for distribution amongst creditors could be made by deduction from a debtor’s earnings.
22.Section 6(1) and (2) require the debtor to instruct an employer to make the approved payments to the person distributing the payments to the creditors and for the employer to comply with the instruction.