garnishment


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Related to garnishment: garnishment order

Garnishment

The withholding of a person's full salary or wages, especially in order to pay a creditor or the tax agency. For example, suppose one's regular paycheck would be $1500. Garnishment occurs when the person receives a check for only $1050 because the government is withholding $450 for taxes. Garnishment may also occur for other reasons, such as to pay child support, back taxes, or some debts.

garnishment

A process involving three parties:

• Judgment creditor. The party who takes a judgment against a debtor (can also be the IRS or a state's Department of Revenue).

• Judgment debtor. The party who owes the debt.

• Garnishee A party who owes money or holds property belonging to the judgment debtor.

In this legal process, the judgment creditor obtains a court order requiring the garnishee to turn over funds or property to the judgment creditor instead of to the true owner, the judgment debtor. The most common garnishments are against employers, requiring them to withhold a portion of wages and salary and pay it to the creditor rather than to the employee. The second most common garnishment is against a bank, ordering it to turn over bank account funds to the judgment creditor or the IRS.

References in periodicals archive ?
Similar trends emerge among industries, where goods-producing companies see higher employee garnishment rates (10 percent) than firms in the service sector (7 percent).
divider] "I often use Chapter 13 to stop garnishment and provide my clients with a payment plan which is affordable for them.
And many of these unbanked recipients were distrustful of banks, fearing unexpected fees that would whittle away their much needed money, or garnishment of the funds in their accounts.
11) In Valley, the plaintiff obtained a judgment by confession against the defendant and a few days thereafter served a citation to discover assets and a third-party non-wage garnishment to collect the debt.
In the Matheny case, a law firm was presented with a writ of garnishment after it had presented a trust account check, disbursing proceeds of a case, to a client but before the client had presented the check to a bank for payment.
Note that garnishment for wages due to unpaid federally issued or guaranteed student loans is limited to 10% of disposable income.
Most times they resent having to contact me, so I immediately thank them for calling, express concern for what they are facing, and indicate I am not judging them but only wondering if I can help in some way, At that point, most of them feel comfortable enough to begin asking me questions about the garnishment.
Hypothetically speaking, from the time of a missed payment, the actual garnishment could happen in as little as 60 days.
The Court of Appeal's decision was predicated very much on selected case law which narrowed the scope of section 89 and 90 of the Indian Act, the sections which protect First Nations from such disabling garnishment orders.
For example, the law authorizes deductions from an employee's pay when it is legally required, such as for taxes or money to satisfy a garnishment or child support order.
In private letter rulings 200342007 and 200426027, the service said "the general anti-alienation rule of IRC section 401 (a)(13) does not preclude a court's garnishing the account balance of a fined participant in a qualified pension plan in order to collect a fine imposed in a federal criminal action" The IRS cited favorably three recent federal district court cases that concluded that ERISA plans were subject to garnishment to satisfy criminal fines under the Federal Debt Collection Procedures Act of 1977 (FDCPA).