Garnishment
A legal collection tool allowing a judgment creditor to intercept money owed to a debtor from a third party — typically wages from an employer or funds in a bank account.
Wage garnishment is a post-judgment collection mechanism where a court orders an employer to withhold a portion of a debtor's wages and send them directly to the creditor. Federal law (Consumer Credit Protection Act) caps wage garnishment at 25% of disposable earnings or the amount by which weekly pay exceeds 30 times the federal minimum wage ($7.25 × 30 = $217.50), whichever is less. Some states impose stricter caps or exempt certain workers.
Bank account garnishment (bank levy) allows a creditor to seize funds in a debtor's checking or savings accounts. The bank is served with a writ of garnishment and must freeze and turn over non-exempt funds. Certain deposits are federally protected: Social Security benefits, SSI, VA benefits, and federal pension payments deposited directly to an account are exempt under federal law.
Garnishment cannot be used without a judgment — it is available only after you have won in court. Employers are prohibited from firing an employee for a single garnishment under federal law, though multiple garnishments may lose that protection.
Real-World Example
After her $8,500 judgment sat unpaid for six months, the plaintiff served a bank garnishment on the defendant's checking account and collected the full balance — $8,500 plus $340 in accrued interest — within three business days.