Garnishee Definition

Term Definition
Refers to a third party mandated by a court order to withhold assets belonging to an individual for debt repayment.

Extended Definition

An organization or an individual holding assets belonging to a debtor may be asked by the court to withhold these assets for repaying a creditor. Such an individual or an organization is called a garnishee. It is not uncommon for a company to be served a garnishment notice by the court directing it to retain employee wages for repaying unpaid debts like child support or taxes. Although not involved in creditor-debtor cases directly, garnishees are legally bound to provide assistance in recovering debts.

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