_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.
A) Liquidation
B) Sequestration
C) Garnishment
D) Distraint

Question

Quizplus · Accepted Answer

Garnishment occurs when a court orders an employer to withhold a portion of an employee's wages in order to pay off a debt owed to a creditor. Liquidation refers to the process of selling off a debtor's assets to pay their debts, sequestration is a legal process whereby a debtor surrenders their assets to a court-appointed trustee, and distraint is the seizure of a debtor's property by a creditor in order to satisfy a debt.

_____ Occurs When a Creditor Obtains a Court Order That