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 ?
If the judgment debtor qualifies for and properly claims the "head of family exemption," then the judgment debtor is afforded two levels of protection from wage garnishment.
We parenthetically note that, while the subject appeal does not raise due process arguments, the issues brought for review implicitly concern the constitutional sufficiency of a garnishment proceeding based upon an unconfirmed judgment by confession.
Justice Barbara Pariente wrote for a unanimous court that attorney trust accounts were no different than personal checking accounts held by banks, which would be subject to such garnishments.
Years ago, before passage of the Consumer Credit Protection Act of 1970, employers often fired workers who were garnished because of the strain it put on the company Today, many payroll managers are feeling "stressed out" because of the high number of garnishments and child support deductions they are being required to handle.
On September 21, 2001, the hospital commenced a wage garnishment proceeding against Garcia and his employer, Richter Industries, the garnishee, to collect on the unsatisfied civil judgment.
Suddenly, he was facing several years of automatic wage garnishment, and the shame of being forced to explain to prospective employers why the government considered him a deadbeat dad.
To improve federal debt collection, the Debt Collection Improvement Act of 1996 established a framework of debt collection tools, including administrative wage garnishment (AWG).
These remedies include wage garnishment, repossession of collateral, and late night phone calls.
This paper examines the role of collateral in personal loan contracts when government regulations, such as usury laws and restrictions on late charges and wage garnishment limit the responses of creditors to increases in default risk.
Learn about managing the complex web of garnishment rules and regulations; answering sensitive questions about wage-withholding without stepping into legal hot water; control potentially hostile situations with an employee whose paycheck is being garnished; communicate garnishment laws to employees in a way that's easy to understand
I will continue to focus on Federal Tax Negation, wage garnishment, bank levies, IRS Audits and installment agreements as these are just some of my areas of expertise.