Judgment creditors in Idaho have access to several means of collection. Garnishment is just one of them. We suspect a lot of people have heard about garnishment but do not truly understand what it is. This post will explain the basics of garnishment and why it might not be the best option.
Regardless of the enforcement method a judgment creditor decides to use, we encourage bringing in a specialist collection agency. An agency like Judgment Collectors is the most qualified to manage tasks like searching for hidden assets and tracking down debtors.
Garnishment Is a Legal Action
The rules governing garnishment differ from one state to the next. In Idaho, garnishment is a legal action. It is initiated by a writ of execution that gives a judgment creditor the legal authority to seize a certain portion of the debtor’s finances as a means of paying a monetary award.
Idaho allows four types of garnishments, all of which are subject to considerable restrictions:
1. Garnishing the Debtor’s Wages
Garnishing the debtor’s wages is the first option and one that most people are probably familiar with. This is a situation in which a garnishment order compels the debtor’s employer to withhold a certain amount from each paycheck and forward it to the judgment creditor. Only a certain percentage of the debtor’s disposable income can be withheld.
2. Garnishing a Spouse’s Wages
Due to Idaho’s community property laws, there are some instances in which the wages of a debtor’s spouse can be garnished. The same rules regarding disposable income and dollar limits apply.
3. Garnishing the Debtor’s Bank Accounts
Idaho judgment creditors also have the option of garnishing debtor bank accounts. Similar to garnishing wages, a financial institution would be compelled by a garnishment order to seize a certain portion of the debtor’s cash assets and forward them to the creditor.
4. Garnishing the Debtor’s Debtor
The most unusual form of garnishment in Idaho involves garnishing the judgment debtor’s debtor. In other words, imagine a judgment debtor who is owed money by a third-party. Any money that this third-party could pay toward his debt could be garnished to cover the judgment. Needless to say that garnishing a judgment debtor’s debtor is complicated.
A Slow Way to Get Paid
Garnishment is not always the best option for collecting simply because it can take so long. Obtaining a garnishment order is pretty straightforward and can be accomplished quickly, but garnishment limits are so low that it could take years to pay off a sizable award by means of garnishment alone.
Imagine a lower middle-class debtor just barely making ends meet. Because the creditor can only garnish a small percentage of the debtor’s disposable income, a limited amount from each paycheck goes toward the judgment. A little is better than nothing at all, but a creditor hoping to rely exclusively on garnishment should be prepared to wait a long time for full payment.
There Are Other Options
There are other collection options in Idaho. Which ones are more appropriate? There is no way to know without looking at an individual case based on its own merits. We can tell you this: knowing all the options and how to utilize each one goes a long way toward getting paid.
If you have an outstanding judgment in Idaho, we might be able to help you collect it. Contact us and let us know the details of your case. We will take a look and see what we can do. Know that you are under no obligation to work with us.