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Can these Wages be Garnished?

A bank customer owns a catering business. His partner with which he resides is a bank employee. He is paid for his services by checks that are made out to his business that is not incorporated. His business' name is used for the endorsement on the back of the check and underneath that are his name and his partner's name. The check is then deposited into her personal account. Is this legal and is it possible for these wages to be garnished?

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If Party A's checks are deposited to an account in the name of Party B (for whatever reason), a legal attachment or garnishment in the name of Party A won't reach the funds in Party B's account. That's a very general response because state garnishment laws vary widely.

A greater concern is that checks payable to a business are being deposited to an individual's account. In this case, the business appears to be a partnership, and it should have its own business deposit account.

Published on BankingQuestions.com 5/08/08