Garnishment

Garnishment is a legal process by which a creditor collects a debt by seizing a debtor’s earnings or assets that are in the possession of a third party, such as an employer or a bank. Garnishment usually follows a judgment in a lawsuit and requires an order from a court or administrative agency directing the third party to withhold funds or deliver property to the creditor.

Common forms include wage garnishment, where part of a debtor’s paycheck is withheld, and bank account garnishment, where funds in a deposit account are frozen and turned over to the creditor. In some jurisdictions, tax authorities may issue levies that collect taxes directly from wages or accounts. The exact methods and rules vary by country and state or province.

Process and protections: after a garnishment order is issued, the third party is served and must withhold or transfer funds up to statutory limits, then remit them to the creditor. Debtors typically receive notice and may have rights to claim exemptions to protect living expenses, or to challenge the garnishment in court. Exemption amounts and procedures differ by jurisdiction and debt type; priority rules often apply for child support, alimony, or certain government loans.

Duration and effects: garnishment continues until the debt is paid, the judgment is satisfied or discharged, or the order is withdrawn. It can affect income and credit and may be influenced by bankruptcy or other relief. Garnishment laws aim to balance creditor remedies with debtor protections and vary widely across jurisdictions.