Garnishee Order

What it is

A garnishee order is a court order that redirects money owed to the debtor straight to the creditor. The order is served on a third party — commonly the debtor's bank, employer or a customer who owes the debtor money — requiring them to pay that money toward the judgment debt rather than to the debtor.

It is an enforcement tool, so it is generally available only after a court judgment has been obtained.

How it works

Once a creditor holds a judgment debt, they can apply to garnishee a known source of the debtor's funds. A garnishee of wages takes a portion of each pay; a garnishee of a bank account captures available funds at the time it is served. The third party must comply or may become liable themselves.

Identifying the right source to garnishee is where investigation matters. Merion handles enforcement and skip tracing for clients through refer a debt.

Good to know

This is general information and not legal advice. Rules differ between states and territories, and there are usually protected minimum amounts so a debtor is not left without basic income. A garnishee only works if the targeted account or income actually holds money at the time the order is served, so accurate, current information about the debtor improves the chance of recovery. If one source dries up, a creditor may need to garnishee a different account or income stream, and timing the order to coincide with a pay cycle can make a real difference to what is collected.