When you owe large amounts of money to one or more creditors, you stand the chance of being sued for the collection of the money that you owe. In many cases, if the judge finds for the plaintiff creditors in the case, then you can have an order of garnishment levied against you. In some cases, you can have not just wages but a civil judgment seized or garnished by creditors.
Civil Judgment
Just as you may have a civil judgment levied against you in a debt collection case, you may be the recipient of a civil judgment levied against another person. While rules vary from state to state, a civil judgment is a debt obligation from one party to another. The party that owes you money may pay in a lump sum or in multiple payments. However, this money is not exempt from garnishment.
Garnishment
When wages or other income streams are garnished, it means that the money is diverted from the person paying you, the debtor -- usually an employer -- to a party who you owe money to. Usually, garnishments are only levied against employers. However, in certain cases, a judge may allow the garnishment order to be placed on other income streams or even on anticipated lump sum payments.
Bank Account Seizure
Even if a civil judgment cannot be garnished directly from the person paying it to you, it may be siphoned out of your bank account. While there are certain types of income that cannot be legally garnished from your bank account, such as most payments by the government -- like Social Security or disability payments -- civil judgments enjoy no such protection. A debt collector only need gain the permission of a judge.
State Laws
Laws regarding the garnishment of wages and other income streams vary from state to state. Some states allow no form of garnishment by private debt collectors at all. Therefore, the only way to determine whether garnishments of civil judgments are legal in your area is to consult with an expert, such as a debt counselor or an attorney with experience in debt law.
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