Legal Definitions - factorize

In a legal context, the term factorize refers to the process of garnishment. Garnishment is a legal procedure initiated by a creditor to collect a debt from a debtor by seizing or withholding funds or property belonging to the debtor, which are currently in the possession of a third party. A court order typically directs this third party (known as the "garnishee") to transfer the specified assets directly to the creditor, rather than to the debtor. This mechanism ensures that a debtor's obligations, such as unpaid judgments, child support, or taxes, are satisfied directly from sources like wages or bank accounts.

• Example 1: Wage Garnishment for Unpaid Child Support

  Imagine Maria owes a significant amount in overdue child support payments. After repeated attempts to collect the debt directly from Maria fail, the custodial parent's attorney obtains a court order. This order directs Maria's employer to factorize her wages. This means the employer, acting as the garnishee, is legally required to withhold a specific portion of Maria's paycheck each pay period and send it directly to the custodial parent, rather than giving the full amount to Maria. This process continues until the outstanding child support debt is fully satisfied.

• Example 2: Bank Account Garnishment for a Business Debt

  A small manufacturing company, "Precision Parts LLC," failed to pay a supplier for a large order of raw materials. The supplier sued Precision Parts LLC and won a judgment for the unpaid amount. To collect this judgment, the supplier's attorney identifies Precision Parts LLC's bank account. They then seek a court order to factorize the funds in that account. The bank, as the third-party garnishee, is legally compelled to freeze a portion of Precision Parts LLC's balance and transfer it directly to the supplier to satisfy the judgment. This action bypasses Precision Parts LLC entirely in the transfer of funds.

• Example 3: Government Levy on Investment Accounts for Unpaid Taxes

  Mr. Davies has a substantial outstanding tax liability with the federal government that he has failed to pay despite numerous notices. The Internal Revenue Service (IRS) decides to factorize Mr. Davies's assets to collect the debt. They issue a legal directive to his investment brokerage firm, ordering the firm to liquidate a portion of his investment portfolio and remit the proceeds directly to the IRS to cover his unpaid taxes. This action legally intercepts Mr. Davies's assets held by the brokerage firm, ensuring the government receives the owed funds without Mr. Davies's direct involvement.