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It is commonly used to force the repayment of debt to a bank or a creditor, as well as in child support or divorce settlements. Some examples of when a garnishee holds back funds for repayment of debt to a bank or creditor, can include child support, divorce settlements or back rent.
EXAMPLES OF AMOUNTS SUBJECT TO GARNISHMENT An employee receives a bonus in a particular workweek of $402. After deductions required by law, the disposable earnings are $368. In this week, 25% of the disposable earnings may be garnished. ($368 25% = $92).
The word Garnishee means a person who is debtor to the judgment debtor or against whom a decree has been passed. Section 2(10) of CPC defines a judgement debtor as any person against whom a decree has been passed or an order capable of execution has been made.
Garnishment, or wage garnishment, is when money is legally withheld from your paycheck and sent to another party. It refers to a legal process that instructs a third party to deduct payments directly from a debtors wage or bank account. Typically, the third party is the debtors employer and is known as the garnishee.
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