The Collection Process, Part 2: What Is Garnishment? A Powerful Debt Collection Tool

Garnishment lets a judgment creditor intercept money owed to a debtor by a third party, like a bank. Learn how it works, when it’s effective, and the legal limits that apply in BC.

Last post, we talked about registration of judgments and how they can be an effective tool in collecting from a judgment debtor.

This week we talk about garnishment, another method which can be very effective to collect from a judgment debtor.

What is garnishment?

Garnishment is when a judgment creditor “intercepts” money which is owed to the judgment debtor by an unrelated party.

As an example: A bank holds money for a judgment debtor. The judgment debtor is entitled at any time to ask for that money. However, a judgment creditor who knows about that bank account can (through a court order) ask the bank to pay that money into court, instead. Once in court, the judgment creditor can ask the court to pay them that money in satisfaction of their judgment.