- When wages are garnished, the debtor will approach the debtor's employer and request that the employer set aside money from the debtor's paycheck. This money will be tallied until the debt has been paid off in full. For a creditor to garnish a debtor's wages, he must first win a case in civil court. Usually, a creditor will file a lawsuit against the debtor alleging that the loan contract was violated.
- If a creditor files a suit against a debtor in civil court and wins, he can then file a petition to the judge to grant him an order of garnishment. If the order is granted, the creditor can present the order to the debtor's employers. Employers are legally required to comply with garnishment orders. All garnishments must, however, be approved by a judge. Attempts to seize money from a debtor's paycheck extrajudicially are illegal.
- There are a number of situations in which it is illegal for a creditor to garnish a person's wages, as well as a number of types of income that are immune from garnishment. In general, private creditors cannot garnish most types of government benefits, including Social Security benefits and unemployment benefits. In addition, many states have laws that prohibit creditors from garnishing money from individuals who do not have much money or who have dependents to support.
- Although most garnishments are undertaken by private creditors, governments also have the power to pursue garnishments. Both state and federal governments are allowed to garnish income sources that private creditors cannot. For example, federal agencies can seek to seize a person's federal tax refund, as well as certain types of benefits. State tax collection agencies may also be able to garnish an individual's unemployment benefits, as well as his state income tax refund.