TeachMeFinance.com - explain Garnishee
Garnishee -- A person who holds money or property belonging
to another which has been attached for debt.
Garnishes order -- This is an order granted by the court commanding a person who is a debtor of a judgment debtor not to pay over the amount of the debt which is owing to the judgment debtor, the object of the same being to prevent the judgment debtor from obtaining the money and applying it to his own use instead of paying the same to his creditors. The procedure is first of all to obtain a garnishee order nisi, which will be granted ex parte upon a good primd facie case being made out, and when this order has been served, the debtor of the judgment debtor is restrained from paying over the amount of the debt, or dealing with the money owing in any way. The person against whom the order is made is called the " garnishee." Afterwards, when the order nisi is made absolute, which will follow in due course unless the debtor can show good cause why it should not be made, the creditor who has obtained the order is entitled to receive the amount of the debt owing, and the garnishee must either pay the same into court or submit to an execution being levied upon his goods and chattels for the same. Payment by the garnishee to the execution creditor is a good discharge of the debt which was owing, or of that part of it which is actually paid if the total amount of the debt owing by the garnishee is greater than the debt of the execution creditor. A garnishee order is not valid against the trustee in bankruptcy of the judgment debtor, unless completed by receipt of the debt before the date of the receiving order and notice of the presentation of a bankruptcy petition by or against the debtor, or the commission of an available act of bankruptcy by him.
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