What is a bank arrestment
A bank arrestment is legally known as ’arrestment and action of furthcoming’. It is a two-part process.
•Part 1: on receiving a schedule of arrestment the bank freezes any funds held in the client’s bank account on that date and time that the arrestment is served (the arrestment), preventing the client from gaining access to those funds.
•Part 2: the funds are taken from the account and given to the creditor. This is known as the ’furthcoming’. Part 2 can only occur in two situations:
◦when a client signs a mandate authorising the bank to transfer the funds to the creditor. This can be done at any point after the arrestment; or
◦14 weeks after the arrestment, when providing the client has not lodged any objection, or has a statutory moratorium in place, the funds are transferred automatically (by operation of law) to the creditor.