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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.


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 ?
No Garnishment: 0/1 dummy variable taking the value of 1 for those states that prohibit wage garnishment, that is, 100 percent of wages are excluded from being garnished for the payment of consumer credit.
wage garnishments led the ADP Research Institute to analyze aggregated, anonymous payroll data from 2013 comprising 13 million employees age 16 and older.
21, 2013 /PRNewswire-iReach/ -- Madison Debt and Tax Relief is proud to announce their IRS wage garnishment elimination program that is able to put an end to IRS wage garnishments in hours once a client calls (800) 441-2615
Tax Defense Network[R] is a national tax resolution company that assists taxpayers with state and IRS tax issues such as tax debt, unfiled returns, wage garnishments, bank account levies and more.
These challenges can include the Affordable Care Act (ACA), tax credits, employment tax, wage payments, wage garnishments, employment verification, unemployment claims and W2 management.
In its complaint, the FTC said the company made claims that it could remove tax liens and stop wage garnishments, bank and tax levies, property seizures and "unbearable monthly payments.
FDCPA allows collectors to make telephone calls to communicate with debtors, and it is generally understood that these calls help all parties as they allow debtors to work out payment plans (where possible) and to discuss the resolution of claims without the need for lawsuits, wage garnishments, foreclosures, or other legal process.
Your hope is that these employees begin to understand the need to address financial issues early, before they lead to bankruptcies and wage garnishments.
The Risk Control survey found that increased outsourcing, downsizing, wage garnishments, and salary reductions contributed to the incidents.
Under current law, when a resident files for bankruptcy, all creditor collection efforts, such as wage garnishments, legal actions and eviction proceedings, am stopped.
The plaintiffs claim the defendants provided little charity care, charging uninsured patients up to 300 times what insured patients were charged for the same services and resorting to predatory debt-collection methods that included lawsuits, wage garnishments, liens, and arrests for failure to appear in court.
Other laws prohibit employers from freely using information about bankruptcies, wage garnishments, or other legal liabilities.