Is the following statement true or false? Where an employee is unwilling or unable to pay debts out of their net pay the Courts may issue an ‘attachment of earnings order (AEO)’ to the employer requiring the employer to make deductions from the employee’s pay and pay them to the courts direct.

If someone owes money and it has been brought to the attention of the courts, then the court can order a garnishment of the wages from the person owing money. This garnishment is stated through the Attachment of Earnings Order.

Many times, this occurs when a parent does not pay child support to the other parent who has more custody of the child. Other reasons for needing an attachment of earnings order is when someone owes money for rent or their mortgage and it has gone into arrears.

It could be income tax, credit card debt or student loans. The court at this point can order the company the person works for to take money out before issuing the person’s paycheck.