ANSWERS: 1
  • A garnishment is a judgment typically issued by the court ordering a party to pay on a debt owed to a plaintiff.

    Significance

    When a defendant has not paid debts owed to a plaintiff the court often issues an order allowing collection of funds through garnishment. Common debts collected through garnishment are owed child support, defaulted student loans and taxes.

    Process

    The most common type of garnishment is wage garnishment. This process occurs when money is deducted directly from a person's employment earnings in order to collect on a debt.

    Restrictions

    Wage garnishments are typically limited to 25% of a person's disposable income. However, as much as 50% can be deducted for owed child support.

    Effects

    Wage garnishments can take a significant portion of a person's earnings but also negatively effect a person's credit and often make it difficult to apply for loans.

    Multiple Garnishments

    When two or more debtors are trying to collect on a debt through garnishment, the laws in most states allow for the employer to process each garnishment request as it was received.

    Source:

    Federal Register

    Employment Law Guide

    Adminstrative Wage Garnishment

    Resource:

    Law.com

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