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Garnishee

Definition - What does Garnishee mean?

A garnishee is an entity who has access to a debtor's funds, and is ordered by the court to pay a certain percentage of the funds to a creditor. Garnishees are used when a debtor owes a debt, and has defaulted enough for the court to become involved. An example of a garnishee would be a bank who holds a debtor's funds, being ordered by the court to pay a percentage of those funds to the debtor's creditor.

Justipedia explains Garnishee

Garnishees are basically middlemen that the court uses to force debtors to pay debts. This can happen when a person owes a lot of money to a creditor, and simply refuses to pay. For example, if a man owes $100,000 to his credit card company, then the credit card company may seek legal action to set up payments from a garnishee. In order for this to happen, the court has to give its approval, and it must send a court order to the garnishee declaring that it must give funds to the creditor. It is basically a way of enforcing debt repayment.

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