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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 ?
The court simply reviewed the language of the statutes themselves and determined that only the statute pertaining to wage garnishments defined a "judgment creditor" as "a recipient of any judgment, except a judgment by confession.
The emphasis of the study is on the effects on bankruptcy filing rates of policy levers, specifically homestead exemptions and wage garnishment laws; social issues such as stigma, legalized gambling, and other social factors; and self-employment.
My proposal for a postpetition priority system would apply to unsecured claims and wage garnishments only, leaving all other nondischargeable secured claims to be satisfied in accordance with priority rules specified under applicable nonbankruptcy law.
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.
Of the four categories studied, child support is the most common wage garnishment (3 percent), followed by student debt or consumer loans (2.
This webcast will help participants learn: The latest myths around wage garnishment and how they've been debunked Different types of wage garnishments and how each one impacts both employers and employees How electronic processes can help manage wage garnishments to improve company compliance and mitigate overall risk Latest wage garnishment data and trends that offer insights on employee wages and garnishments reporting.
Families are losing their homes, liquidating their retirement accounts, taking their children out of college, and are being subjected to wage garnishment - all to pay ISO AMT tax on phantom income.
Their search led them to ADP, which was able to provide an integrated ADP Vantage HCM solution, including ADP SmartCompliance for tax credit services, employment verification, Affordable Care Act compliance and wage garnishment services.
A few of these proposed changes include the standardization of garnishment timeframes, the acceptance of electronic signatures on responses, a limit on maximum wage garnishment penalties, and requiring garnishees (employers) to providing additional/new documents to judgment debtors (employees).
com to discuss the five most common wage garnishment myths, examining how electronic processes can help businesses more easily manage garnishments and explore the various types of garnishments that may impact employers and employees today.
In fact, TTM's acquisition of Viasystems Group in May 2015 not only doubled the size of the company, but accelerated TTM's need for a unified payroll system that could provide employees with a compliant payroll solution and ease day-to-day payroll administrative functions, as well as simplify complex tasks like wage garnishment.
ADP also is providing payroll, time management, benefits administration, recruitment, screening and selection services, electronic I-9 compliance screening, and wage garnishment.