Garnishment facts for kids
A garnishment is a way for someone to collect money that is owed to them. Imagine if someone owes money but isn't paying it back. A garnishment is a special order, usually from a court, that tells a third party (like a bank or an employer) to send some of that money directly to the person or company who is owed. It's a way to make sure debts are paid.
What is a Garnishment?
A garnishment is a legal process used to collect a debt. When a person or company owes money and hasn't paid it, the person they owe might ask a court for help. The court can then order someone else, like a bank or an employer, to take money from the person who owes it and send it directly to the person who is owed. This helps to settle the debt.
How Do Wage Garnishments Work?
One common type of garnishment is called a wage garnishment. This happens when a part of a person's paycheck is taken out before they even receive it. This money is then sent directly to pay off a debt they owe.
Wage garnishments continue until the entire debt is paid back. They can be used for different kinds of debts. Some common examples include:
- Helping with child support payments, which are funds to help parents support their children.
- Paying back student loans if someone borrowed money for their education and hasn't repaid it.
- Settling unpaid taxes, which is money owed to the government.
What Happens if You Have a Garnishment?
Having a garnishment can affect a person's financial standing. It can make it harder to get new loans or open bank accounts in the future. This is why it's important to understand how debts work and to pay them back on time.
