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What Is a Garnishee?

There are instances when a third party is used in a debt transaction to hold or retain possession of a debtor’s assets. When the debtor and creditor enter into litigation processes, it is possible that the creditor will seek payment by virtue of a court ruling. When the court demands that the debtor must pay the creditor, the third party must comply with court ruling and give the creditor the assets under its possession. This type of payment is referred to as garnishment, and the third party involved is called a garnishee.

A garnishee can only act upon the judgment of the court, and can be any type of entity, an organization or person. A writ is issued by a judge that details the description and value of the assets that the garnishee must hold. This writ is a binding legal document that can indict a garnishee if she or he ever hides or moves the assets, whether for the debtor or for himself or herself.

Many different types of garnishment situations could arise that would entail the need for a garnishee to submit the assets in his or her possession to a court ruling. The most common type of garnishment is wage garnishment wherein an employer withholds a certain percentage of his or her employee’s salary to submit to a creditor, such as taxes, defaulted student loans, and any other monetary judgment. The moment the garnishee receives the order from the court to disburse the assets, the garnishee is legally obligated to do so according to the monetary judgment’s terms and conditions.?

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