New York Private Investigator Regulations Practice Exam

What does garnishment refer to?

1. The process of forgiving debt

2. Attachment of debtor's wages or salary to satisfy a judgment

3. A method of selling assets

4. A form of bankruptcy declaration

The correct answer is: Attachment of debtor's wages or salary to satisfy a judgment

Garnishment refers specifically to the legal process where a portion of a debtor's earnings, such as wages or salary, is withheld by an employer to satisfy a debt or judgment. This typically occurs after a court has determined that the creditor has the right to collect the money owed. The garnishment is effective because it allows creditors to receive payment directly from the debtor's income, ensuring they are compensated for the debts owed. This process is governed by specific laws that protect both the debtor and creditor's rights, including limitations on the amount that can be garnished, which often ensures that the debtor retains a portion of their wages to cover living expenses. Understanding garnishment is essential for both private investigators and those in the finance or legal fields, as it directly relates to debt collection practices.