What does it mean to garnish wages?

Garnish wage is a process used by creditors to accumulate money to be paid. Garnish wage is a court order allowing someone to gather a debt by putting a claim on money owed to the debtor that is in the ownership of a third person. The process usually involves a lawsuit; if the applicant prevails they are awarded a judgment. This is how to garnish wages. A judgment can be used in different ways; the ideal technique is wage garnishment or bank account levy. The most general are claims on earnings owed to the debtor or money held in a bank account. Other examples are rent or land agreement payments to be paid by a tenant of the debtor or insurance money owed to the debtor.

The amounts of wages that can be garnished are set by concerned state law. Any unpaid amounts due under the Judgment plus the costs of collection can be collected. Interest on the part of the Judgment that has not been paid can be added to the unpaid balance. The interest rate that is allowed is available quarterly by the Courts. In addition, the cost of filing and serving the Writ of Garnishment can be added to the total amount due.

There are a few states in the US that limit garnished wages to a few types of debts. North and South Carolina, Texas and Pennsylvania permit garnished wages only for federal or state tax debts, child support, defaulted student loans that are federally guaranteed, or for compensatory damages decided by a court during a criminal or civil law suit. A credit card company cannot garnish the wages of an employee unless they litigate the borrower. Many people can learn from these examples on how to garnish wages.

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