Define: Garnishee

A garnishee is a person or entity, such as an employer or financial institution, that holds money or property belonging to a debtor and is subject to a garnishment order to satisfy a debt owed by the debtor.

Garnishment is a legal process where a creditor obtains a court order to seize funds or property held by a garnishee to satisfy a debt owed by the debtor. The garnishee is required to withhold the specified amount from the debtor’s wages, bank accounts, or other assets and remit it to the creditor.

Any individual, business, or institution that holds money or property belonging to the debtor can be a garnishee. This may include employers, banks, financial institutions, landlords, or anyone else with control over the debtor’s assets.

Funds that can be garnished typically include wages, salary, bonuses, commissions, bank accounts, tax refunds, rental income, and other sources of income or assets held by the garnishee on behalf of the debtor.

The garnishee is responsible for complying with the court-ordered garnishment by withholding the specified amount from the debtor’s funds or property and remitting it to the creditor as directed by the court.

In most cases, a garnishee is legally obligated to comply with a garnishment order issued by the court. Failure to comply with the order may result in legal penalties or sanctions against the garnishee.

Garnishees have certain rights, including the right to receive proper notice of the garnishment, the right to request a hearing to challenge the garnishment, and the right to deduct reasonable administrative fees for processing the garnishment.

Garnishment typically continues until the debt is fully satisfied, the court orders the garnishment to cease, or the garnishee no longer holds funds or property belonging to the debtor.

Debtors may have the right to challenge a garnishment order by disputing the validity of the debt, asserting exemptions allowed under state or federal law, or requesting a hearing to present evidence of financial hardship or other mitigating circumstances.

Upon being served with a garnishment order, the garnishee should carefully review the order, comply with any requirements for withholding funds or property, notify the debtor of the garnishment, and remit the withheld amount to the creditor as directed by the court. It may also be advisable for the garnishee to seek legal advice to ensure compliance with applicable laws and procedures.