A garnishment is actually a mean of collecting money in which a third party(garnishee) is ordered to pay to plaintiff which garnishee owes to defendant. Actually it is a legal sort of term.
A process granted by the court order through which lender obtains directly from employers as a part of the salary from the employee who is behind the payments to the lender.
In a more generalized form we can say that:
Withholding amounts from employee's disposable pay and the paying of those amounts to creditor is garnishment.
Wage garnishment is the most common type of garnishment. It involves the process of deducting money from an employee's salary etc. as a result of court order.
In the United States such payments are limited to 25% (of the total disposable money earned by the employee) by the Federal law.
Garnishment can be taken into any kind of debt but the common are:
1- Child support
2- Taxes
3- Unpaid court fines
4- Any other type of money judgements
For an employer the garnishment serves as payroll process. When he is processing the payroll sometimes the money in employee's net pay is not enough to satisfy all garnishments. Then a garnishment priority is set.
For example:
In the case of federal tax, local tax, and credit card garnishments,
the first garnishment taken would: federal tax garnishments,
then the local tax garnishments,
finally, garnishments for the credit card.
A process granted by the court order through which lender obtains directly from employers as a part of the salary from the employee who is behind the payments to the lender.
In a more generalized form we can say that:
Withholding amounts from employee's disposable pay and the paying of those amounts to creditor is garnishment.
Wage garnishment is the most common type of garnishment. It involves the process of deducting money from an employee's salary etc. as a result of court order.
In the United States such payments are limited to 25% (of the total disposable money earned by the employee) by the Federal law.
Garnishment can be taken into any kind of debt but the common are:
1- Child support
2- Taxes
3- Unpaid court fines
4- Any other type of money judgements
For an employer the garnishment serves as payroll process. When he is processing the payroll sometimes the money in employee's net pay is not enough to satisfy all garnishments. Then a garnishment priority is set.
For example:
In the case of federal tax, local tax, and credit card garnishments,
the first garnishment taken would: federal tax garnishments,
then the local tax garnishments,
finally, garnishments for the credit card.