Garnishment is when there is a court order directing a percentage of money to be taken directly off of a paycheque to pay a debt owed to a creditor. It is a legal process that ensures that the employer deducts payments directly from a debtor’s paycheque and paid directly to the creditor. Garnishments are usually for debts such as fines, tax payments, child support payments, and student loans.

How Does Apply to you

When you completed University you had an outstanding student loan debt of $20,000. You continued on with your life getting a job, getting married and having children all the while slowly paying off your student loan. Then for whatever reason, you were no longer able to afford the student loan payments. Student loans must be paid back regardless of any situation, therefore the outstanding debt on the student loan is then taken through a court order and it is deemed to have your paycheque garnished until which time the debt is paid.

This means that for every paycheque you receive from the time the legal process begins until the debt of the student loan is paid off you will have a percentage taken directly off of your paycheque by your employer. You employer then sends the amount directly to the student loan payments.

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