Question

A court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to a creditor is known as _____

Answer 1

A court order that directs an employer to set aside a portion of an employee’s wages to pay a debt owed to a creditor is known as garnishment.

When money is legally withdrawn from your paycheck and given to another person, this is known as garnishment or wage garnishment. It alludes to a legal procedure that directs a third party to take money out of a debtor's paycheck or bank account on their behalf.

The third party also referred to as the garnishee, is frequently the debtor's employer. Employers are not allowed to terminate a worker in order to avoid processing a garnishment payment under federal law. For debts including unpaid taxes, cash penalties, child support obligations, and unpaid student loans, garnishments are used.

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