Garnishee Order
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Also known as garnishment, a garnishee order is a legal order issued by a court to require a person (i.e. garnishee) owing money to the defendant to pay his debt to the claimant rather than to the defendant. This allows a creditor to collect a debt owed to them by someone who owes the debtor money, such as an employer or a bank.
For example, if a person owes a creditor money and they have a bank account, the creditor can apply for a garnishee order to have the bank freeze funds in the debtor's account and pay them directly to the creditor. The garnishee order may be used to collect any type of debt, such as unpaid rent, taxes, or child support.
Therefore, it is a legal tool used by creditors to collect debts and is typically used as a last resort when other attempts to collect the debt have failed. It is important to note that there are limits on how much can be garnished from a person's wages or bank account, and some types of income, such as Social Security, are exempt from garnishment.
For example, if a person owes a creditor money and they have a bank account, the creditor can apply for a garnishee order to have the bank freeze funds in the debtor's account and pay them directly to the creditor. The garnishee order may be used to collect any type of debt, such as unpaid rent, taxes, or child support.
Therefore, it is a legal tool used by creditors to collect debts and is typically used as a last resort when other attempts to collect the debt have failed. It is important to note that there are limits on how much can be garnished from a person's wages or bank account, and some types of income, such as Social Security, are exempt from garnishment.