Creditor's Rights

Question 1

What is garnishment?

Answer 1

Garnishment is way for creditor to obtain payment from a debtor who does not pay her bill.

Periodic garnishments (those sent to employers or anyone else who makes periodic payments to debtor) or nonperiodic garnishments (usually sent to banks)

Question 2

How garnishment process works

Answer 2

Begins when creditor files a certified statement with the clerk saying that they have a judgment that has not been paid in an amount certain and the creditor knows or has reason to know that a third party owes a debtor something.

Collection efforts may begin 21 days after entry of judgment.

• stat of limit 10 yrs for collection judgment
• can only take up to 25% of disposable income

Question 3

When Can Debtor Object?

Answer 3

Judgment debtors may file objections to garnishments but objections may only be based on defects in or the invalidity of the garnishment proceeding itself
-can’t challenge validity of judgment previously entered

Question 4

When Can’t Garnish Debtor’s Money

Answer 4

• when debtor has filed bankruptcy
• the debtor’s bank account has social security funds in it
• judgment has been paid
• garnishment was no properly issued or is otherwise invalid