Direct earnings attachments local authority debt and new claims
Local authorities should recall the DEA when the client enters insolvency or the DAS. Issues have been highlighted when the client has a DEA and then applies for housing benefit. Many local authorities reduce a client’s entitlement to these benefits based on a previous overpayment which is now part of their chosen insolvency option or DAS. This should not happen and should be challenged with the local authority. Where the debt is for a fraudulent overpayment, a DEA may begin again after discharge.