What Is a Garnishee Order?

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A garnishee order involves a court-ordered garnishment of a debtor’s wages or property in order to collect a debt. Unpaid wages, bank accounts and some personal property are the usual items garnished.

In order to garnish a debtor, a creditor files for a court order seeking garnishment for repayment of an unpaid debt. The IRS uses this method of collecting unpaid taxes and penalties. The federal government, including the IRS, can garnish up to 25 percent of earned income. Employers withhold garnished funds from pay and send the garnished amount directly to the debtor. The amount of money and other types of properties that are garnished varies and are regulated by individual state laws and federal law.