Which statement correctly describes garnishment?

Garnishment refers to a legal process used to collect a debt that involves a third party holding or controlling assets belonging to the debtor. The correct answer is that garnishment serves as a warning to a third party regarding the debtor’s property. This typically occurs when a creditor seeks to compel a third party—often an employer or a bank—to hold back a portion of the debtor’s wages or funds until the debt is satisfied.

In this context, the third party is informed of the legal obligation to keep funds from the debtor for the creditor's benefit, effectively allowing the creditor to "garnish" the debtor's wages or other assets. This method protects the creditor's interests while ensuring that due process is followed in addressing the debtor's financial responsibilities.

The other options misinterpret the nature of garnishment. For instance, while taking over a debtor's property might suggest seizing assets, garnishment does not equate to ownership transfer but rather a restriction on access to certain funds. A demand for immediate payment is typically a different legal action, commonly referred to as a demand letter or notice, rather than garnishment. Lastly, a summons for a personal appearance in court pertains to court procedures rather than the process of garnishing wages or assets,