Paralegal Advanced Competency Exam (PACE) Practice Exam

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Study for the Paralegal Advanced Competency Exam (PACE). Utilize flashcards and multiple-choice questions designed to enhance your knowledge of paralegal standards and competencies. Prepare effectively and increase your chances of passing!

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What is garnishment used for?

To reward individuals for good performance
To seize a person's property for debt payment
To transfer assets to a beneficiary
To dissolve a partnership

The correct answer is: To seize a person's property for debt payment

Garnishment is a legal process used to collect a debt by seizing a person's property or earnings. It typically involves a court order that allows a creditor to take a portion of a debtor’s wages directly from their employer or to seize funds deposited in a bank account. This process serves as a means for creditors to ensure they receive payment when a debtor fails to do so voluntarily. In this context, the correct answer reflects the primary purpose of garnishment as a tool to enforce debt collection and secure payment for owed amounts. The other choices focus on completely different legal concepts, such as rewarding performance, transferring assets, or partnership dissolution, none of which pertain to the function of garnishment.