If you have been sued for money and you lose, the person who sued you is given a judgment. If you do not pay a judgment, you will not go to jail. The most common action used by creditors to collect a judgment is to "execute on a judgment". This means that the creditor tries to have the judgment paid out of the property or wages of the debtor, the person who owes the money. Garnishment is another term used to describe this procedure. Garnishment almost always follows a judgment.

Before wages are taken from the debtor, the creditor will have already filed a lawsuit, the creditor will have already given notice to the debtor, and the debtor will have had an opportunity to answer the lawsuit and, of course, if the debtor does not agree with the creditor, the debtor has an opportunity for a trial.

A judgment is a court decision that there is something owed by the debtor to the creditor. The creditor then must try to collect the judgment. One of the most common ways to collect the judgment is to obtain from the court a Writ of Execution. This document is issued by the court and directs some public officer like the marshal or sheriff to take possession of some asset or property of the debtor. The Writ of Execution can also authorize the officer to tell an employer to take part of an employee's salary from each paycheck until the amount of the judgment has been paid to the creditor. There are limitations on how much of the paycheck may be taken. In Tennessee, no more that 25% of a debtor's take-home pay may be turned over to the creditor. Even this amount is subject to being reduced. In Tennessee, a debtor is entitled to an absolute exemption of 30 times the federal minimum wage plus an additional $2.50 per week for each child under 16 who is a resident of the state. If this is not a sufficient amount of the debtor and his family to live on, the debtor may apply to the court for an order suspending the garnishment, or to reduce the amount being taken out of each check. The necessary forms may be obtained from the court clerk.

A writ of execution may also be issued against other payments or monies owed to you by other companies or persons.

Some payments are automatically exempt from garnishment. These include amounts received for Aid to Families with Dependent Children, disability insurance benefits, SSI payments, social security payments, and VA disability payments.

Once a judge has entered a judgment, the best course of action for the debtor to follow is to pay the amount of the judgment to the creditor or to make satisfactory arrangements with the creditor for regular payments.

In Tennessee, a garnishment is good for three months unless the court notifies your employer that the garnishment has been released. The court will only do this if you have made arrangements to pay your creditor. If you make arrangements and fail to keep up your payments, the creditor may start the garnishment again.
There is also the possibility that the debtor may consider filing bankruptcy to relieve himself of certain obligations.

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The information available through TBALink LawBytes is basic legal information and is not a substitute for legal advice. LawBytes is provided by the Tennessee Bar Association as a public service and for general information only. It should not be considered legal advice. You should consult your attorney if you have questions concerning any specific situation. If you do not have an attorney, may we suggest that you contact your local bar association's referral service. The topics covered through TBALink LawBytes will provide basic information and should make it easier for someone with a problem to decide whether they need professional help from a lawyer or if another agency could provide them with assistance.