What is garnishment?

Garnishment is a legal process used to secure the payment of a debt by obtaining funds directly from a third party. Typically, this third party is an employer or a financial institution, from which a creditor can collect a portion of a debtor's wages or funds in a bank account to satisfy an outstanding obligation. This process is often employed when a creditor has obtained a court order to collect the debt, allowing them to bypass direct collection efforts from the debtor and ensuring that the funds are paid to them directly.

In this context, the correct answer underscores the formal and lawful nature of garnishment as a means of enforcing debt payment. The other options do not adequately define garnishment; liquidating assets refers to converting them into cash, an illegal act implies wrongdoing not inherent in the garnishment process, and bankruptcy filing pertains to a legal declaration about one’s inability to pay debts rather than the collection of debts through third parties.