What does it mean for wages to be garnished?

Wage garnishment is a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.

Is a wage garnishment the same as a bank garnishment?

According to the law, a creditor needs to win a judgment in order to garnish your account. Having your bank account garnished is different from having your wages garnished. A court-ordered wage garnishment requires your employer to withhold a certain amount of your paycheck and send it to your creditor.

What’s the difference between a levy and a garnishment?

A levy is a legal order that freezes your bank account and seizes the money in it. If a levy is placed on your bank account and you continue to deposit money into it, that money may also be seized by the creditor. Government agencies are more likely to use levies against you while private creditors are more likely to use wage garnishment.

What does a garnishment do to your paycheck?

(Learn about the levy process.) Garnishment. A garnishment is a collection tool that allows a creditor to instruct your employer to take a portion of your wages from your paycheck. The law then requires your employer send those earnings to the creditor so that the creditor may apply them towards your debt.

Can a creditor use a wage garnishment first?

Both government agencies and private creditors can use levies and wage garnishments—and both do just that. Most creditors, however, will attempt to levy your bank accounts first. There are many reasons why it makes sense for a creditor to drain a bank account before moving on to a wage garnishment.

What happens when a levy is placed on your bank account?

If a levy is placed on your bank account and you continue to deposit money into it, that money may also be seized by the creditor. Government agencies are more likely to use levies against you while private creditors are more likely to use wage garnishment. What’s The Process?