Garnishment is a legal process that allows a court to order a person to pay a certain amount of money to an employer. The process of garnishment is typically used to collect money that a debtor owes to another person or organization. When a debt collector garnishes your wages, they take out a portion of your regular income. This can cause major problems for your business.
What is Garnishment?
Garnishment is a legal process that allows a court to order a person to pay a certain amount of money to an employer. This can be done in order to collect the debt, such as unpaid wages or child support. The process of garnishment begins with the filing of a petition with the court. The petitioner must provide evidence that the debtor owes money to the employer. After this evidence is presented, the court will decide whether or not to issue a garnishment order against the debtor.
How is Garnishment Used?
Garnishment is a legal process by which a creditor can take some of an individual’s wages or other income in order to satisfy a debt. This may be done to collect on a past-due loan, for instance, or to cover current costs associated with the debt. The creditor may send the individual a notice informing them of the garnishment and specifying the amount of money that is being taken away from their income. There are limits on how much money an employer can seize during a garnishment action, and Garnishment orders cannot be used to collect taxes or social security payments from employees.
If you are subject to a garnishment, it is important to act quickly. An attorney can help you understand your rights and options, and may be able to assist you in avoiding or reducing any financial burden associated with your debt situation. If you have been served with a garnishment notice, it is important to contact an attorney as soon as possible.
How Does Garnishment Work?
Once a garnishment order is issued, the employer can begin seizing any income that is owed to the debtor. This means that employers can take any money that is being paid directly to the debtor, as well as any money that is deposited into the debtor’s bank account or wage account. The amount that can be seized depends on how much money is owed by the debtor and how much money was already earned by the debtor before the garnishment process began.
What are Some Limitations on Garnishments?
There are several limitations on garnishments that should be taken into account when planning for your business. First, garnishments cannot be used to collect debts that were incurred before January 1, 2009. Second, only regular income can be seized by employers during a garnishment process. This means that wages, salaries, commissions, bonuses, and other types of irregular income cannot be seized by employers during a garnishment action. Third, Garnishment orders cannot be used to collect taxes or social security payments from employees. Finally, Garnishment orders are limited in their ability to collect interest and penalties from debtors who do not have enough money available in their bank accounts to cover all of their debts at once.
Final Words
Garnishment is a legal process that can be used to get money owed to you. There are risks associated with this process, but they can also be used to get money quickly. Make sure you understand the latest updates to garnishment law before you file. Attend the COmpliance Prime webinar to learn more about the Garnishment process.
