Garnish is a legal term that has an important place in the professional realm for business professionals. Put simply, garnishment is the court-ordered withholding of a portion of an individual’s wages, or other type of income, to satisfy a debt. Garnishment is typically processed by an employer, who must comply with the garnishment and deduct the designated sums from the individual’s pay.
When Can Garnishment Occur?
The legal right to garnish an individual’s wages typically occurs when an individual fails to satisfy legal obligations such as credit card debt, unpaid taxes, unpaid bills, and child support. In these cases, the creditor (or a tax authority or government agency) can petition the court to receive permission for garnishment. Once the order is granted, the employer must deduct a specific sum of money from the individual’s wages and send it directly to the appropriate creditor, or government agency as directed.
How Do You Respond to an Order of Garnishment?
If your employer receives an order of garnishment, they will inform you of this action. You then have a window of opportunity to respond and provide defense for why garnishment should not occur. Factors such as financial hardship can be put forward as a defense against garnishment. If an individual does not respond within the allotted time frame, or if the court upholds the petition, garnishment will take effect.
How Can Business Professionals Avoid Garnishment?
Regardless of the success of a business professional, garnishment remains a possibility if any type of debt or obligation is not met. The best tactic to avoid garnishment as a business professional is to stay on top of any pending debt and meet any payment deadlines. Make sure to stay in contact with creditors should you experience any financial hardship, as this will alert them to your situation and give you the chance to lay out a repayment plan that is amenable to both your business situation and their needs.
Garnishment can be a crucial measure in the business realm when a debtor is failing to meet financial obligations, but it can also be an intrusive measure that affects an individual’s livelihood. Knowing the law and understanding how to prevent an order of garnishment is an important factor for the modern business professional.