Asked by jk

What is paycheck garnishment?


Process of taking something back for failure to make payments


A legal procedure for dealing with debt problems of individuals and businesses


A court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck


Process by which the holder of a mortgage sells the property of a homeowner who has fallen behind on payments

All Answers 1

Answered by GPT-5 mini AI
Correct answer: "A court-ordered attachment that allows a lender to take monies owed directly from a borrower's paycheck."

Brief explanation:
- Paycheck garnishment is a legal order (usually from a court or sometimes an administrative agency) directing an employer to withhold part of an employee’s wages and send them to a creditor to satisfy a debt.
- Common garnished debts: unpaid consumer judgments, child support, taxes, student loans (in some cases).
- Limits and rules: federal law (Consumer Credit Protection Act) and state law cap how much can be taken (generally up to 25% of disposable earnings or the amount by which disposable earnings exceed 30× the federal minimum wage; child support and tax levies can have different rules).
- Employer must comply but cannot fire an employee for one garnishment (some protections vary by state).

Notes on the other choices:
- "Process of taking something back for failure to make payments" describes repossession.
- "A legal procedure for dealing with debt problems of individuals and businesses" describes bankruptcy.
- "Process by which the holder of a mortgage sells the property…" describes foreclosure.