SCHEDULE 3AChanging the basis of deductions

Part 1Changing to the fixed deductions scheme

Introduction

1

This Part of this Schedule deals with the variation of a certain kind of attachment of earnings order — referred to as a Schedule 3 judgment debt order — by changing the basis of deductions.

2

A Schedule 3 judgment debt order is a Schedule 3 deductions order made by a county court to secure payment of a judgment debt.

3

References to variation of a Schedule 3 judgment debt order by changing the basis of deductions are references to the variation of the order so that it specifies that periodical deductions are to be made in accordance with the fixed deductions scheme.

4Variation at discretion of court

1

A county court may vary a Schedule 3 judgment debt order by changing the basis of deductions.

2

The county court may make the variation—

a

in consequence of an application made to the court, or

b

of its own motion.

3

The variation takes effect on the date that it is made.

5Variation by court upon redirection

1

A county court must vary a Schedule 3 judgment debt order by changing the basis of deductions if—

a

the order lapses, and

b

the county court directs the order to a person in accordance with section 9(4).

2

The variation must be made at the same time as the county court directs the order in accordance with section 9(4).

3

The variation takes effect on the date that it is made.

6Automatic variation on changeover date

1

On the changeover date, all Schedule 3 judgment debt orders are to be treated as if a county court had varied them by changing the basis of deductions.

2

The variation takes effect on the changeover date.

3

The changeover date is the date which the Lord Chancellor specifies for the purposes of this paragraph.

4

The Lord Chancellor is to specify the changeover date in an order made by statutory instrument.

5

A statutory instrument containing an order under sub-paragraph (4) is subject to annulment in pursuance of a resolution of either House of Parliament.

7Notice of variation still required

Section 9(2) (service by court of notice of variation) applies to the variation of an order under this Part of this Schedule (including variation in accordance with paragraph 6) as it applies to any other variation of an attachment of earnings order.

Part 2Changing from the fixed deductions scheme

Introduction

8

This Part of this Schedule deals with the variation of fixed deductions orders by changing the basis of deductions.

9

References to variation of a fixed deductions order by changing the basis of deductions are references to the variation of the order so that it specifies that periodical deductions are to be made in accordance with Part 1 of Schedule 3.

10General prohibition on changing from the fixed deductions basis

A court may not vary a fixed deductions order by changing the basis of deductions unless the variation is in accordance with this Part of this Schedule.

11Fixed deductions order directed to secure payments under an administration order

1

A county court must vary a fixed deductions order by changing the basis of deductions if, under section 5, the county court directs the order to take effect as an order to secure payments required by an administration order.

2

The variation must be made at the same time as the county court gives that direction under section 5.

3

The variation takes effect on the date that it is made.

4

Section 9(2) (service by court of notice of variation) applies to the variation of an order under this paragraph as it applies to any other variation of an attachment of earnings order.