Garnishment
What Is Garnishment?
Garnishment is a legal process in which a court orders a financial institution or employer to withhold money from a person’s account or wages to pay a debt. When garnishment applies to a bank account, the financial institution may freeze or withdraw funds to comply with the court order.
Garnishment is commonly used to collect unpaid debts such as taxes, child support, or court judgments.
Why It Matters
Garnishment can significantly affect a person’s financial situation by reducing access to their money. Understanding how garnishment works helps individuals recognize their rights and obligations when legal debt collection actions occur.
Financial institutions must follow court instructions and applicable laws when processing garnishment orders.
How Garnishment Works
The garnishment process usually includes several steps:
- A creditor obtains a court judgment for unpaid debt.
- The court issues a garnishment order.
- The bank or employer receives the order and must comply.
- Funds are withheld and sent to the creditor.
Certain types of income may be protected from garnishment under federal or state law.
Garnishment vs Account Levy
- Garnishment may apply to wages or bank accounts.
- A levy typically refers to the seizure of funds directly from a bank account by a government authority.
FAQs About Garnishment
Can banks refuse a garnishment order?
No, financial institutions must comply with valid court orders.
Are all funds subject to garnishment?
Some funds may be legally protected depending on the jurisdiction.
How long does garnishment last?
It continues until the debt is satisfied or the court order ends.
Related Terms
