What Is a Garnishment Release?

January 18, 2023
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Paul Petersen
Posted in Finance
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A garnishment release is a legal process that releases the debtor from the garnishment of his wages or bank account. When the creditor decides to sue for garnishment of his debtor’s wages or even a bank account, the court has a right to issue a writ to the bank to withhold the applicable funds and instead, forward them to the creditor. A release of a garnishment letter removes the court’s involvement from this process and releases the debtor.

Wage Garnishment

Wage garnishment is an order from the court to deduct a certain amount from the income of employees to satisfy a debt or a legal obligation. The third party is the debtor’s employer and is known as garnishee. The garnishee would inform the debtor about the garnishment. Garnishment can be used for various types of debts such as unpaid taxes, child support payments, and many more.

How Does the Garnishment Work?

A creditor needs to obtain a legal order from the court which proves that the debtor owes him money. However, if the debt is in the IRS, a court order is not necessary. Further, the IRS would contact the debtor’s employer to remit a portion of his salary till the debt is clear.

Duration of a Wage Garnishment

The wage garnishment lasts for the period till the tax debt is paid in the full. However, you can end the wage garnishment by the IRS if you can prove the financial hardships you have to go through due to the wage garnishment. Check this blog for more information.

How can Wage Garnishment be Released?

Primarily, there are three ways a wage garnishment can be released:

Pay the tax debt amount in full
Establishing a payment agreement with IRS
Show your financial hardships to IRS

Moreover, you can also take help from a professional for better guidance.

Final Overview

It should be noted that the garnishment letter only applies to the garnishment mentioned in that particular letter. No further action is required when the taxpayer has been released from the garnishment letter. However, it can harm the credit score of an individual since garnishment is the last resort to collect debts.