Garnishment

Garnishment intercepts obligations owed to the judgment debtor by third parties.

Common targets. Bank accounts; wages, subject to statutory caps and exemptions; accounts receivable owed by the debtor’s customers; tax refunds where permitted; and amounts held by a title company or an escrow agent.

Procedure. A writ issued by the court, served on the garnishee, who must answer within a stated period disclosing what it holds or owes and must hold the property pending further order.

Garnishee liability. A garnishee that fails to answer, or that releases funds after service, can be liable for the amount of the judgment. This is the most serious risk in the process and falls on banks and employers.

Notice to the debtor and an opportunity to claim exemptions, with a short deadline.

Federal benefit protections requiring a look-back review of deposit accounts and automatic protection of an amount without any claim by the debtor.

Periodic garnishment of wages continuing over time, subject to renewal.

Priority among multiple garnishments, generally by service order, subject to statutory priority for support obligations.

Practical targeting. Serve where the money is. A bank garnishment served the day after payroll is materially more productive than one served the day before.