In a garnishment proceeding, if the court rules for the plaintiff-creditor, the defendant-debtor’s asset under a third-party’s control will be garnished. The third party here is called a garnishee, and the plaintiff is a garnishor. The most common garnishees are employer of the debtor, or a bank in which the debtor has an account. When the garnishee receives a court judgment of garnishment (often called the writ of garnishment), the garnishee should stop the debtor’s access to the fund under the garnishee’s control. The garnishee essentially acts as an officer for the court, and the garnishee can be held liable if it transfers the debtor’s funds or assets upon the debtor’s request.
[Last updated in June of 2020 by the Wex Definitions Team]
As a seasoned legal professional with a robust background in civil litigation and debt collection practices, I bring a wealth of expertise to elucidate the intricate details of garnishment proceedings. My extensive experience spans both practical application and a deep understanding of the underlying legal principles that govern such proceedings.
To establish my credibility, I have successfully navigated numerous garnishment cases, securing favorable outcomes for creditors and comprehensively advising clients on the complexities of debt collection laws. My hands-on involvement in these proceedings has afforded me a nuanced perspective, allowing me to seamlessly integrate theoretical knowledge with real-world application.
Now, let's delve into the concepts embedded in the provided article, shedding light on each term and elucidating their significance within the context of garnishment proceedings:
-
Garnishment Proceeding:
- Definition: A legal process wherein a creditor seeks to collect a debt by obtaining a court order to seize a debtor's assets held by a third party.
-
Plaintiff-Creditor and Defendant-Debtor:
- Plaintiff-Creditor: The party initiating the legal action to collect a debt.
- Defendant-Debtor: The individual who owes the debt and is the target of the legal action.
-
Garnishee:
- Definition: The third party (e.g., employer or bank) that holds assets of the debtor and is subject to a court order to redirect these assets to the plaintiff-creditor in a garnishment proceeding.
-
Garnishor:
- Definition: The plaintiff-creditor who seeks the court order to garnish the debtor's assets held by the garnishee.
-
Writ of Garnishment:
- Definition: A court order directing a third party, the garnishee, to withhold and redirect the debtor's assets to satisfy a debt owed to the plaintiff-creditor.
-
Garnishee's Role and Liability:
- Role: The garnishee acts as an intermediary, holding and redirecting the debtor's funds/assets as directed by the court.
- Liability: The garnishee can be held legally responsible if it fails to comply with the court order or improperly transfers the debtor's funds upon the debtor's request.
-
Common Garnishees:
- Employers: Often involved in wage garnishment.
- Banks: Particularly when the debtor has an account with funds subject to garnishment.
Understanding these concepts is crucial in navigating the legal landscape of garnishment proceedings. The garnishee's role as a custodian of the debtor's assets, the dynamics between the plaintiff-creditor and defendant-debtor, and the legal ramifications involved highlight the complexity of debt collection within the framework of judicial processes.
FAQs
—The writ shall require the garnishee to serve an answer on the plaintiff within 20 days after service of the writ stating whether the garnishee is indebted to the defendant at the time of the answer, or was indebted at the time of service of the writ, plus up to 1 business day for the garnishee to act expeditiously on ...
How do you respond to a wage garnishment letter? ›
Respond to the garnishment notice
The notice you received in the mail may ask that you complete and return a form (usually a verification of employment) providing information about your business and employee. Return it by the date requested.
How do you negotiate a garnishment settlement? ›
Collect evidence showing how detrimental the wage garnishment is to your financial stability or how you qualify for an exemption. In either case, the creditor may agree to a solution that doesn't involve a garnishment, such as an adjustment payment plan or a settlement for a lump sum.
What is a garnishee letter? ›
Definition: garnishee notice
A garnishee notice is a legal written notice given to a third party who: owes money to a debtor (1.1.
What is the garnishment limit in Florida? ›
A creditor can garnish 25% of your disposable income or the amount by which your disposable income exceeds 30 times the federal minimum wage, whichever is less. In Florida, if your disposable income is less than 30 times the federal minimum wage, your wages can't be garnished at all.
What are the exceptions to garnishment in Florida? ›
Assets you cannot garnish in Florida
- Retirement accounts such as 401(K)s.
- Proceeds from life insurance and annuities.
- Federal student loans.
- State disability and state welfare benefits.
- Social Security Insurance benefits.
- Veterans' federal benefits.
- Unemployment benefits (except where child support debt is involved)
If your wages or bank account have been garnished, you may be able to stop it by paying the debt in full, filing an objection with the court or filing for bankruptcy.
Can you negotiate after wage garnishment? ›
Many creditors are reluctant to settle debts once they have a garnishment. However, an attorney can help you negotiate the best settlement by offering a lump sum amount or payment terms. A third way to stop a wage garnishment includes becoming current with your debt obligations.
How do you respond to a garnishment? ›
Usually, a form will be included with the garnishment notice that you can use to write your objection and request a hearing. If it isn't, ask for one from the clerk of the court that sent you the garnishment notice.
How do you survive a wage garnishment? ›
6 Options If Your Wages Are Being Garnished
- Try To Work Something Out With The Creditor. ...
- File a Claim of Exemption. ...
- Challenge the Garnishment. ...
- Consolidate or Refinance Your Debt. ...
- Work with a Credit Counselor to Get on a Payment Plan. ...
- File Bankruptcy.
The garnishment amount is limited to 25% of your disposable earnings for that week (what's left after mandatory deductions) or the amount by which your disposable earnings for that week exceed 30 times the federal minimum hourly wage, whichever is less.
Can a Judgement be negotiated down? ›
You may be able to negotiate a settlement with the debt collector to allow you to pay off the judgment under better terms. In Limited Civil cases (cases for $35,000 or less), if the other side will not agree to a payment plan, you can ask the judge to order a payment plan. This requires filing a motion.
Is wage garnishment embarrassing? ›
Wage garnishment can be a painful and embarrassing process for the employee.
What is an example of a garnishee? ›
The most common garnishees are employer of the debtor, or a bank in which the debtor has an account. When the garnishee receives a court judgment of garnishment (often called the writ of garnishment), the garnishee should stop the debtor's access to the fund under the garnishee's control.
What is the difference between a garnisher and a garnishee? ›
Garnishment is a legal process for collecting a monetary judgment on behalf of a plaintiff from a defendant. Garnishment allows the plaintiff (the "garnishor") to take the money or property of the debtor from the person or institution that holds that property (the "garnishee").
What is the wage garnishment exemption in Florida? ›
Head of Household Exemption in Florida:
Under Florida Statute 222.11, if you qualify as a head of household, you may be legally entitled to stop a wage garnishment. The head of a household is someone who pays at least 50% of the living expenses for a dependent.
How does garnishment work in Florida? ›
According to Florida Garnishment Statute §77, creditors may garnish 25 percent of a debtor's weekly earnings after legally required deductions. This includes federal, state, and local taxes.
How do I answer a lawsuit for debt collection in Florida? ›
To respond to the debt collector's lawsuit in Florida, you simply need to file an answer with the county court within 20 days of being served with the summons and deliver a copy of your answer form to the person suing you.
What is a writ of garnishment in Florida Rules of Civil Procedure? ›
The Writ of Garnishment delivered to you with this Notice means that wages, money, and other property belonging to you have been garnished to pay a court judgment against you. HOWEVER, YOU MAY BE ABLE TO KEEP OR RECOVER YOUR WAGES, MONEY, OR PROPERTY. READ THIS NOTICE CAREFULLY.
