Garnishee order: Difference between revisions
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imported>Doug Williamson m (Correcting spelling of Lien on see also and slight wording change to definition to make it clearer.) |
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A court order that directs a person or entity who holds funds or assets for a debtor to withhold | A court order that directs a person or entity who holds funds or assets for a debtor to withhold these from the debtor and release them to the debtor's creditor in order to pay off the debt. | ||
For example, an order from a court forbidding a bank to release money that it holds in the account of one party for as long as that party owes money to a second party. | For example, an order from a court forbidding a bank to release money that it holds in the account of one party (the debtor) for as long as that party owes money to a second party (the creditor). | ||
The second party obtains the garnishee order and the bank is the garnishee. | The second party obtains the garnishee order and the bank is the garnishee. | ||
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== See also == | == See also == | ||
* [[Bad debts]] | * [[Bad debts]] | ||
* [[ | * [[Lien]] | ||
[[Category: | [[Category:Compliance_and_audit]] | ||
Revision as of 11:19, 25 January 2014
A court order that directs a person or entity who holds funds or assets for a debtor to withhold these from the debtor and release them to the debtor's creditor in order to pay off the debt.
For example, an order from a court forbidding a bank to release money that it holds in the account of one party (the debtor) for as long as that party owes money to a second party (the creditor).
The second party obtains the garnishee order and the bank is the garnishee.
