What is garnishment?

Garnishment is a legal procedure by which a creditor can collect money from a debtor from third-party sources. This typically happens when the debtor has failed to pay a debt and the creditor seeks to recover the money by taking action against the debtor's wages, bank accounts, or other assets owned by the debtor.

What is the process of garnishment?

The creditor must first get a court order allowing them to garnish the debtor's wages or bank account, and the debtor must be notified in advance. The creditor then sends a notice to the debtor's employer or bank, instructing them to withhold a certain amount of money from the debtor's wages or account and send it to the creditor.

Importance of garnishment

Garnishment is an important tool in ensuring that borrowers pay their debts. It ensures that creditors can claim what is rightfully theirs and protects the financial integrity of debt contracts. By allowing a creditor to seize wages, social benefits, or other monetary assets directly from a delinquent debtor, garnishment can act as an incentive for debtors to stick to payment plans and contracts they have agreed upon previously with their creditors. Not only does garnishment help ensure that creditors get back what is owed to them but it protects honest debtors too by preventing fraudulent or inflated claims from being made against them.

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