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Legal Definitions - garnishee
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Definition of garnishee
Garnishee is a term used in a legal process called garnishment. When a creditor wins a court case against a debtor, the court may order a third party who holds the debtor's assets to freeze or seize those assets. This third party is called a garnishee. The garnishee is responsible for holding the debtor's assets until the court decides how to distribute them.
- An employer who owes the debtor wages
- A bank where the debtor has an account
- A tenant who owes rent to the debtor
For example, if a debtor owes money to a creditor and the debtor's employer is the garnishee, the court may order the employer to withhold a portion of the debtor's wages and send them directly to the creditor. The employer is responsible for following the court's order and can be held liable if they fail to do so.
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Simple Definition
A garnishee is a third party who holds money or assets that belong to someone who owes money to another person. If a court decides that the debtor owes money to the creditor, the garnishee will be ordered to give the money or assets to the creditor instead of the debtor. The most common garnishees are the debtor's employer or bank. The garnishee must follow the court's order and cannot give the money or assets to the debtor. If they do, they can be held responsible for breaking the law.
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