Understanding Garnishment Basics

What is the definition of garnishment?

• A process to sell a debtor's property without consent.

• A method to increase a debtor's credit score.

• Garnishment is a legal procedure to withhold a portion of a debtor's earnings or assets to satisfy a debt.

• A way to negotiate lower interest rates on loans.

Describe the first step in the garnishment process.

• Obtain a court order or judgment against the debtor.

• Contact the debtor's employer directly.

• Send a demand letter to the debtor.

• File a bankruptcy petition against the debtor.

What is a wage garnishment?

• A wage garnishment is a bonus given to employees for good performance.

• A wage garnishment is a type of tax refund issued to workers.

• A wage garnishment is a financial aid program for unemployed individuals.

• A wage garnishment is a legal process that allows creditors to take a portion of a debtor's earnings directly from their paycheck.

What legal requirements must be met for garnishment?

• A verbal agreement with the debtor

• A court order, proper notice to the debtor, and compliance with applicable laws.

• No notice required if the creditor is known

• Only a written request from the creditor is needed

How does a creditor initiate a garnishment?

• A creditor can initiate a garnishment by sending a notice to the debtor.

• A creditor can initiate a garnishment by contacting the debtor's employer directly.

• A creditor initiates a garnishment by obtaining a court judgment and filing a garnishment application.

• A creditor must wait for the debtor to voluntarily pay the debt before garnishment can begin.

What role does the court play in the garnishment process?

• The court authorizes and oversees the garnishment process.

• The court collects the garnished funds directly.

• The court determines the amount to be garnished.

• The court represents the debtor in the garnishment process.

Can a debtor contest a garnishment? If so, how?

• A debtor cannot contest a garnishment under any circumstances.

• Yes, a debtor can contest a garnishment by filing a motion with the court.

• A debtor can only contest a garnishment by paying the owed amount.

• A debtor must wait for the garnishment to take effect before contesting it.

How can we check the percentage of wages that can be garnished?

• By sending document to the court

• By collecting a document from the debtor

• By referring to the document by the creditor

• It depends on the withholding form and the bi weekly check

What are the consequences of failing to comply with a garnishment order?

• Enhanced credit score

• Legal penalties, contempt of court, and additional financial consequences.

• Increased job security

• Immediate debt forgiveness