What Is a Garnishment Release?

Debtors released from garnishment will once again receive a full paycheck.

If an individual leaves a debt unpaid for long enough, his creditor may sue him and seek a garnishment order through the court. A garnishment order gives the creditor the right to force the debtor to pay what he owes, through either wage garnishment or a levy on his bank accounts.

Facts

When a creditor wins a lawsuit, the court decides how much the creditor is owed in its judgment. A creditor cannot garnish more than that amount. Once the amount is paid, the debtor is released from the garnishment order, according to CreditCards.com.

Significance

Once a garnishment order is satisfied, the creditor must file a garnishment release form with the court notifying it of that fact. The debtor may request a copy of the official garnishment release from the court, according to FCMCClerk.com.

Considerations

If an individual can prove in court that the creditor was awarded a judgment and subsequent garnishment in error, the court will vacate the judgment and release the individual from further garnishment.

Features

Once a debtor files for bankruptcy, all garnishments must be immediately released until the case is reviewed by the bankruptcy court.

Warning

If a debtor loses his job, the garnishment is immediately terminated. A new garnishment order can be issued, however, when the debtor finds new employment.

References

• Credit Cards: How Wage Garnishment Works and How to Avoid It
• Civil FAQ: Garnishments
• CreditInfoCenter: Vacating a Judgment
• NOLO: How Bankruptcy Stops Your Creditors - The Automatic Stay

Resources

• NEDAP: Wage Garnishment
• Lawyers: Garnishment