Definition
Attachment is a legal process enabling a creditor who has obtained judgment in the courts (the judgment creditor) to secure payment of the amount due from the debtor. The judgment creditor obtains a court order which dictates that money or property owed by a third party to the debtor must be frozen and paid instead to the judgment creditor to satisfy the debt.
For instance, a judgment creditor may employ a third-party debt order to attach the salary that an employer owes to the debtor.
Examples
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Salary Garnishment: A scenario where an individual’s wages are attached by court order to pay off a debt owed to a creditor. The debtor’s employer is mandated by the court to redirect a portion of the employee’s wages to the creditor.
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Bank Account Freezing: A judgment creditor receives a court order to freeze funds in the debtor’s bank account. The financial institution holding the account must reserve a specified amount to be paid to the creditor as per the court directive.
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Property Seizure: If a debtor owes money and owns a valuable property (e.g., a car), a court may order the seizure and sale of the property, with proceeds going to satisfy the creditor’s claim.
Frequently Asked Questions (FAQs)
What is the purpose of attachment?
The main purpose of attachment is to allow creditors to secure payments from debtors in the event of non-payment, by legally redirecting payments or assets owed to the debtor by third parties.
Who can issue an attachment order?
Attachment orders can only be issued by a court once a creditor has obtained a judgment against the debtor.
Which assets can be subject to attachment?
Assets subject to attachment include wages, bank accounts, and personal property, as long as they are not exempt under the law (e.g., essential living expenses).
What is a third-party debt order?
A third-party debt order is a specific type of attachment where a creditor secures a court order to freeze and redirect money owed to the debtor by a third party (like an employer or a bank).
How can a debtor protect themselves from attachment?
Debtors can protect themselves by negotiating repayment plans with creditors, filing for exemptions in cases of essential assets, or applying for bankruptcy, which may impose an automatic stay on debt collection efforts.
Related Terms
- Judgment Creditor: A creditor that has obtained a court judgment against a debtor.
- Garnishment: A legal process of deducting money from an employee’s monetary compensation (including salary) as a result of a court order.
- Lien: A right granted by law to a creditor to retain goods or assets of the debtor until the debt is discharged.
- Writ of Execution: A court order granting the right to enforce a judgment, usually leading to the seizure of property.
- Debtor: An individual or entity that owes money to another party.
- Exemption: Specific assets or funds that cannot be seized or garnished to satisfy a debt.
Online References
- Investopedia on Garnishment
- NOLO’s Debt Collection Section
- Cornell Law School: Legal Information Institute on Attachment
Suggested Books for Further Studies
- “Debt Collection and Repossession: The Legal Guide” by Margaret Jasper
- “The Law of Consumer Credit and Hire” by A.H. Hudson
- “Credit and Collection Law” by Arthur Winston
Accounting Basics: “Attachment” Fundamentals Quiz
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