Legal Definitions - writ of garnishment

Term: writ of garnishment

A "writ of garnishment" is a formal court order that allows a creditor to collect a debt by seizing money or property belonging to the debtor, but which is currently held by a third party. This third party, known as the garnishee, is legally compelled by the court to withhold the debtor's assets and turn them over to the creditor to satisfy a judgment or outstanding debt. This legal tool is typically used after a court has already determined that a debt is owed (i.e., after a judgment has been issued).

Here are some examples illustrating how a writ of garnishment might apply:

• Example 1: Wage Garnishment

  Imagine Sarah owes a significant amount of money on a personal loan, and the lender has obtained a court judgment against her for non-payment. Despite the judgment, Sarah has not paid the debt. The lender can then ask the court for a writ of garnishment directed at Sarah's employer.

  How this illustrates the term: The court issues a writ ordering Sarah's employer (the garnishee) to withhold a specific portion of Sarah's regular wages and send those funds directly to the lender (the creditor) until the judgment is fully satisfied. Sarah (the debtor) does not directly control the transfer of these funds.

• Example 2: Bank Account Garnishment

  Consider a small business, "Bright Ideas Inc.," that failed to pay a supplier, "Global Parts Co.," for a large shipment of materials. Global Parts Co. sued Bright Ideas Inc. and won a judgment for the unpaid amount. Bright Ideas Inc. still refuses to pay.

  How this illustrates the term: Global Parts Co. can obtain a writ of garnishment targeting Bright Ideas Inc.'s bank accounts. The court would then order the bank (the garnishee) to freeze and release funds from Bright Ideas Inc.'s accounts to Global Parts Co. (the creditor) up to the amount of the judgment. The bank, as the third party holding the debtor's money, is compelled to comply with the court order.

• Example 3: Brokerage Account Garnishment

  Suppose David was found liable in a lawsuit for damages caused by a negligent act, and a court ordered him to pay a substantial sum to the victim, Emily. David has not paid, but he holds a significant investment portfolio with a brokerage firm.

  How this illustrates the term: Emily can seek a writ of garnishment against David's brokerage account. The court would then order the brokerage firm (the garnishee) to freeze and transfer specific assets (such as cash or marketable securities) from David's account to Emily (the creditor) to satisfy the judgment. The brokerage firm is the third party holding David's assets and must comply with the court's directive.