Business owners know the frustration and financial problems that can stem from waiting for payment of monies you’re owed. When you’ve been chasing for some time, but the money just isn’t coming, what should you do next?
A writ of garnishment is one option you have available to you in collecting the debt that you’re owed.
What is a writ of garnishment?
In Florida, a creditor can ask the court to get involved where they have an unpaid debt that the debtor shows no intention of paying. When a writ is granted, it’s then served on bodies and persons who hold money for that debtor. They are then obliged to put an amount of money or property aside to be held at the court’s discretion.
The intention is that the money/property goes directly from this body/person to the creditor without the debtor having access to it.
How can you use garnishment to claim your unpaid debts?
The most common forms of garnishment are those attached to a bank account or salary. What this means in practice is that after the writ of garnishment is served on a debtor’s bank or employer, they’re required to take action.
For banks, this means freezing the individual/business’s account until the court gives further direction.
With wages, an employer will be ordered to take 25 percent of the employee’s salary and pay this amount to the creditor. This can take place for as long as needed until the debt is cleared or another date as is decided.
You shouldn’t have to wait to be paid the money you’re due. Garnishment is one of the options available to you in pursuing debtors for unpaid invoices and is an option to explore with legal help.