| From time to time people find themselves in a | | | | accomplished by working with the banks and |
| predicament where they cannot pay their dues. | | | | investment institutions where the defendant's assets |
| Depending on which state you reside in, garnishment | | | | are housed or invested. In asset seizure the IRS |
| laws exist to ensure that creditors who are owed | | | | sometimes uses agents who can physically pay a visit |
| money are paid if the debtor is unwilling to enter into a | | | | to the defendant's premises and physically retrieve |
| voluntary agreement to repay the debt. | | | | assets. |
| Garnishment is the process where one's wages are | | | | Garnishment is done in conjunction with the employee's |
| withheld or deducted in order to satisfy a debt. This is | | | | payroll process. The court requires that an |
| usually done by court order and the creditor must | | | | assessment be done of the defendant's assets and |
| prove that he or she attempted to get the debtor to | | | | liabilities to determine the amount that will be garnished. |
| pay voluntarily but was unable to get an agreement or | | | | The law stipulates that dues owed to the federal |
| the agreement was broken. | | | | government be collected first. Then next is any monies |
| When we think of the term garnishment we | | | | due to State and Local tax authorities and then lastly |
| immediately think of the IRS but strictly speaking | | | | any other amounts for instance credit cards. |
| garnishment is not limited to the IRS alone. Any other | | | | Not all states allow garnishment of wages. States |
| creditor, whether public or private or even a federal | | | | such as Texas, Pennsylvania and North Carolina, only |
| government department can seek wage garnishment. | | | | allow wage garnishment for federal taxes, court |
| Ex-spouses also can sue in a court of law for unpaid | | | | ordered fines, federal student loans and child support . |
| alimony and see garnishment. | | | | Others allow garnishment on almost any kind of debt |
| Another term used to refer to garnishment and also | | | | including debts from private creditors and collectors. |
| one that is less friendly is asset seizure. This is also a | | | | The law also offers some protection to debtors. |
| term mostly associated with the IRS when they seek | | | | Garnishment cannot exceed more than 25% of the |
| to recover back taxes through a court order. While | | | | disposable earnings of the defendant in most cases |
| asset seizure and wage garnishment do not | | | | with the maximum being 50%. The debtor is also |
| necessarily mean the same thing, they are | | | | required to fill out an asset and liability assessment |
| nevertheless terms that invoke fear. Asset seizure | | | | form to determine his or her living expenses. |
| need not be done through the employer but can be | | | | |