Attachment of earnings
Encyclopedia
Attachment of Earnings is a legal process
in civil litigation by which a defendant
's wages or other earnings are taken to pay for a debt
. This collections process is used in the common law
system, especially Britain and the United States
, but in other legal regimes as well.
Ballentine's Law Dictionary notes that this process is not literal, whereby a "person's property is figuratively brought into the court."
The earnings
seized may be wages, certain benefits, or sales
commissions.
A sheriff
, constable
, or marshall enforces the court order.
, an attachment of earning order can stop money being paid to a defendant.
Under British law, a self-employed, unemployed, or member of the armed forces can not have an attachment against them.
In Britain, the District Council can attach earnings. This may be by a physical removal of the money or other personal property. However, more commonly, the officer merely contacts the bank
, landlord
, employer, trustee
, bailee
or other person holding the property, with a certified copy
of the order, for them to hand over the debtor's property for attachment; this is especially true with intangible personal property and real property
.
In most jurisdiction
s in the United States
, a limit of 10 percent of gross earnings may be taken for ordinary debts. However, 15 percent may be taken for student loans, and up to 40 percent for child support
arrears, or even higher.
In many American
jurisdictions, attachment of earnings is treated the same as, or is just called, garnishment
. This is when either earnings, and/or property
may be taken by the court.
Legal process
Legal process , are the proceedings in any civil lawsuit or criminal prosecution and, particularly, describes the formal notice or writ used by a court to exercise jurisdiction over a person or property...
in civil litigation by which a defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
's wages or other earnings are taken to pay for a debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
. This collections process is used in the common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
system, especially Britain and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, but in other legal regimes as well.
Ballentine's Law Dictionary notes that this process is not literal, whereby a "person's property is figuratively brought into the court."
The earnings
Earnings
Earnings are the net benefits of a Corporation's operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT -- earnings before interest and taxes, EBITDA - earnings before...
seized may be wages, certain benefits, or sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
commissions.
A sheriff
Sheriff
A sheriff is in principle a legal official with responsibility for a county. In practice, the specific combination of legal, political, and ceremonial duties of a sheriff varies greatly from country to country....
, constable
Constable
A constable is a person holding a particular office, most commonly in law enforcement. The office of constable can vary significantly in different jurisdictions.-Etymology:...
, or marshall enforces the court order.
United Kingdom
In the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, an attachment of earning order can stop money being paid to a defendant.
Under British law, a self-employed, unemployed, or member of the armed forces can not have an attachment against them.
In Britain, the District Council can attach earnings. This may be by a physical removal of the money or other personal property. However, more commonly, the officer merely contacts the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, landlord
Landlord
A landlord is the owner of a house, apartment, condominium, or real estate which is rented or leased to an individual or business, who is called a tenant . When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner...
, employer, trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
, bailee
Bailment
Bailment describes a legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person to another person who subsequently has possession of the property...
or other person holding the property, with a certified copy
Certified copy
A certified copy is a copy of a primary document, that has on it an endorsement or certificate that it is a true copy of the primary document...
of the order, for them to hand over the debtor's property for attachment; this is especially true with intangible personal property and real property
Real property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
.
United States
At present four U.S. states — North Carolina, Pennsylvania, South Carolina and Texas — do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed. Several other states observe maximum thresholds that are lower than the 25 percent maximum provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver).In most jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, a limit of 10 percent of gross earnings may be taken for ordinary debts. However, 15 percent may be taken for student loans, and up to 40 percent for child support
Child support
In family law and public policy, child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other relationship...
arrears, or even higher.
In many American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
jurisdictions, attachment of earnings is treated the same as, or is just called, garnishment
Garnishment
A garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party to pay money, otherwise owed to the defendant, directly to the plaintiff...
. This is when either earnings, and/or property
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
may be taken by the court.
See also
- Attachment (law)Attachment (law)Attachment is a legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor. A wide variety of legal mechanisms are employed by debtors to prevent the attachment of...
- BankruptcyBankruptcyBankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
- Collections
- DistraintDistraintDistraint or distress is "the seizure of someone’s property in order to obtain payment of rent or other money owed", especially in common law countries...
- ContractContractA contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
- GarnishmentGarnishmentA garnishment is a means of collecting a monetary judgment against a defendant by ordering a third party to pay money, otherwise owed to the defendant, directly to the plaintiff...
- Tax refund interceptionTax refund interceptionA tax refund interception is the act of an agency responsible for sending tax refunds using all or part of a refund to fulfill an obligation of the taxpayer rather than sending the money to the taxpayer him/herself...
- JudgmentJudgmentA judgment , in a legal context, is synonymous with the formal decision made by a court following a lawsuit. At the same time the court may also make a range of court orders, such as imposing a sentence upon a guilty defendant in a criminal matter, or providing a remedy for the plaintiff in a civil...
- SheriffSheriffA sheriff is in principle a legal official with responsibility for a county. In practice, the specific combination of legal, political, and ceremonial duties of a sheriff varies greatly from country to country....
- Working under the table