Definition of Garnishee§
A garnishee is an individual or entity, frequently an employer, who is notified by a court or other legal authority to retain custody of assets—typically wages or bank accounts—belonging to another individual. The garnishee holds onto these assets until the conclusion of legal proceedings, at which time the court determines the rightful entitlement. The garnishee is responsible for maintaining the status quo of the retained assets and may have legal obligations and penalties associated with non-compliance.
Examples of a Garnishee§
- Employer Wage Garnishment: An employer is served a garnishment notice requiring them to withhold a portion of an employee’s wages to pay a creditor.
- Bank Garnishment: A bank receives a notice to freeze a customer’s account up to a certain amount until a legal judgment is made regarding a debt owed by the account holder.
Frequently Asked Questions§
Q1: What is the role of a garnishee in legal proceedings?
- A: The garnishee’s role is to hold and safeguard the assets mentioned in the garnishment notice until the resolution of the legal proceedings.
Q2: Can a garnishee refuse to comply with a garnishment notice?
- A: No, the garnishee must comply with the garnishment notice or face potential legal consequences, including penalties or fines.
Q3: Are there limits to how much of an employee’s wages can be garnished?
- A: Yes, there are federal and state regulations that limit the amount that can be garnished from wages, often taking into account factors like minimum wage and living expenses.
Q4: Does being a garnishee affect one’s credit rating?
- A: The garnishee’s credit rating is generally not affected; however, the individual whose assets are being garnished might see an impact on their credit rating due to the underlying debt.
Q5: What happens if the garnishee fails to hold the assets as required?
- A: Failing to comply with a garnishment notice may subject the garnishee to legal penalties, including fines and potentially being held liable for the debt.
Related Terms§
Garnishment: A legal process whereby a creditor can collect what a debtor owes by ordering a third party to hold and settle the debt from assets or earnings of the debtor.
Creditor: An individual or institution to whom money is owed.
Debtor: An individual or organization that owes money to another party.
Online References§
Suggested Books for Further Studies§
- “The Complete Guide to Garnishments: Wage Attachments and Related Debt Collection Law” by Amorette Nelson Bryant
- “Wage Garnishment: Laws, Rules, and Procedure” by Jody McLeod
- “The Law of Garnishments” by Tracy L. Moon Jr.
Fundamentals of Garnishee: Business Law Basics Quiz§
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