Legal Question in Credit and Debt Law in New York
Replacement Check for Former Emloyee's Garnishment Deduction.
We, as an employer, were weekly taking a wage garnishement deduction from one of our employee's paycheck. The money was disbursed to the payee, who was the initial debt holder. One of the checks was not cashed and, thus, eventually void.
Now we need to replace this check since we, as an employer held the deduction amount.
The debt was sold to the second party.
Who do we make the replacement check payable to:
1)The initial debt holder (since that's who the initial check was made out to)
2)The new debt holder
3)The employee who the deduction was taken from?
Thank you for any suggestions you could give!
1 Answer from Attorneys
Re: Replacement Check for Former Emloyee's Garnishment Deduction.
Since you are replacing a check subject to a garnishment, I would make the check paid to the intial debt holder.
Mike.