Investopedia

Continue to Site »

Garnishment

Filed Under »
Dictionary Says

Definition of 'Garnishment'

A legal process whereby payments towards a debt owed by an individual can be paid by a third party - which holds money or property that is due to the individual - directly to the creditor. The third party in such a case is generally the individual's employer and is known as the garnishee. Garnishments are typically used for debts such as unpaid taxes, monetary fines and child support payments.
Investopedia Says

Investopedia explains 'Garnishment'

For example, if John Smith owes $10,000 in unpaid taxes that have been overdue, the IRS can resort to garnishment of his wages. The IRS would then direct Smith's employer to remit a portion of his salary for a certain amount of time, until Smith has paid off his taxes in full. Garnishments can have a negative impact on one's credit rating.

Articles Of Interest

  1.

    Outfox The Debt Collector's Hounds

    Dealing with a collection agency is scary if you don't know your rights. We help you take back the power.

  2. Fighting Back Against Collection Lawsuits

    There are still options available to those being pursued by a creditor.

  3. Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.

  4. 10 Steps To Tax Preparation

    Follow these simple steps to get you ready for April 15.

  5. Top 9 Solutions To An Unexpected Tax Bill

    Finding out you owe when you expected a refund is a nasty shock. Find out how to cope.

  6. IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.

  7. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  8. Post-Grad Degrees That Pay The Highest

    A post-graduate degree could be well worth the extra time and expense.

  9. The Highest Paying Jobs In 2013

    With the U.S. economy experiencing mixed fortunes, this article looks at the highest-paying jobs for 2013 and how job-seekers can capitalize.

  10. Top-Paying Contract Positions

    A number of contract positions pay more than their salaried counterparts.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center