garnishment

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Related to Garnishee order: garnishee proceedings

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
We found that 210,000 public servants are now affected by garnishee orders,' claimed a recent report ('Low savings "a concern"'), < http://www.fin24.com/articles/default/display_article.aspx?
The only thing the court can do is to adjourn the application for garnishee order sine die, pending the determination of the appeal filed at Akure,' Basiru remarked.
Mr Waluke and Ms Wakhungu executed the arbitral award and recovered over S14 million from NCPB after attaching and selling its assets and obtaining garnishee orders against its bank accounts," Mr Lutta says.