LPO
2025.05.27
Cancellation of Garnishment Proceedings
The client, A, who is the representative of a corporation, had personal assets unjustly garnished in relation to the corporation's debt. At the time, the corporation was disputing the payment of service fees, but the personal assets of the corporation's representative were excessively garnished. In this situation, Client A was forced to deposit an amount greater than the garnished sum in order to have the garnishment lifted.
Garnishment is a procedure intended to secure the debtor’s general assets as a means of preserving the enforcement of a monetary claim. If the debtor provides an appropriate guarantee, there is no need to garnish general assets. Therefore, a garnishment can be canceled when the reason for the garnishment is eliminated, circumstances change, an appropriate guarantee is provided, or if no lawsuit is filed within three years after the garnishment is executed.
Cha & Kwon Law Firm carefully analyzed the unfairness of the garnishment imposed on Client A, its significant lack of fairness, and other factors. After presenting the evidence, the firm was able to secure a decision to cancel the garnishment by offering a lower guarantee than the amount required for a release of the garnishment.