Definition
A legal order requiring an employer or bank to divert part of your wages or account balance to a creditor. It typically follows a court judgment, though tax debts, federal student loans, and child support can garnish without one. Federal law caps what most creditors can take, generally up to a quarter of disposable pay, with different rules for support and taxes.
Why it matters
Garnishment is the end state of ignored debt: by the time pay is being diverted, fees and interest have grown the balance and the options have narrowed. Judgments usually arrive after a lawsuit the borrower never answered, so responding to collection lawsuits matters.
Example
A borrower ignores a lawsuit over a $6,000 defaulted card balance and the creditor wins a default judgment. With $800 of weekly disposable earnings, up to $200 a week is withheld from each paycheck until the judgment, plus interest and costs, is paid.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.