arrestment

Arrestment is a legal procedure primarily found in Scots law that allows a creditor to claim a debt from a third party who owes money to or holds property belonging to the debtor. This third party is known as the arrestee. The arrestment acts as a form of diligence, a legal process to enforce a court judgment or secure a debt.

There are two main types of arrestment: arrestment in the hands of a person (also known as arrestment of a debt) and arrestment of corporeal moveables (arrestment of property). In the former, the creditor seeks to attach a sum of money that the arrestee owes to the debtor, such as wages or a bank balance. In the latter, the creditor aims to secure ownership of movable property belonging to the debtor that is in the possession of the arrestee.

The process typically begins with the creditor obtaining a court order or decree for the debt. Following this, the creditor serves an arrestment schedule on the arrestee. This schedule formally notifies the arrestee that the debtor's funds or property held by them are now subject to the creditor's claim. The arrestee is then legally bound not to pay or deliver the arrested funds or property to the debtor, but rather to hold them for the creditor.

If the arrestee fails to comply, they may become personally liable to the creditor for the debt. The arrestment remains in effect until the debt is paid, the arrestment is recalled by the court, or the creditor takes further steps to realize the arrested funds or property, such as raising an action of furthcoming. Arrestment is a powerful tool for creditors seeking to recover debts.