What Is a Garnishment Bond?

Garnishment can happen to anyone.

Garnishment bonds arise when a creditor sues you in order to collect funds owed to them. A judge can then rule that your monies get garnished. Garnishment can be taken from your salary, bank funds or assets. For example, failing to pay child support can result in a garnishment of wages from your employer.

Identification

The treasury department legislates bonds.

The Department of Treasury legislates that garnishment bonds will be accompanied by a letter indicating that the court has ordered a garnishment of your wages.

Significance

Don't destroy your credit rating.

Garnishment bonds can result in a bad credit rating. If you refuse to comply with the courts ruling, it could result in jail time.

Considerations

Some funds are exempt from garnishment.

According to the Treasury Department, some funds are exempt from garnishment including social security and federal funds. You may challenge a garnishment order, but this will result in a freezing of your bank accounts.

Prevention

Manage your debt.

Manage your debt effectively. Seek assistance from your bank or a credit agency. Resources are available to people who have large amounts of debt.

Potential

Pay your debt.

Make sure that you use credit responsibly. If you make an effort to pay off your debt, a garnishment order may not be required.

References

• U.S. Marshals Service: Service of Process Writ of Garnishment
• U.S. District Court: Garnishment, Eastern District of Missouri: Garnishment/Writ of Execution