1) objects are created on heap in Java  irrespective of there scope e.g. local or member variable. while its worth noting that class variables or static members are created in method area of Java memory space and both heap and method area is shared between different thread.
2) Garbage collection is a mechanism provided by Java Virtual Machine to reclaim heap space from objects which are eligible for Garbage collection.
3) Garbage collection relieves java programmer from memory management which is essential part of C++ programming and gives more time to focus on business logic.
4) Garbage Collection in Java is carried by a daemon thread called Garbage Collector.
5) Before removing an object from memory Garbage collection thread invokes finalize () method of that object and gives an opportunity to perform any sort of cleanup required.
6) You as Java programmer can not force Garbage collection in Java; it will only trigger if JVM thinks it needs a garbage collection based on Java heap size.
7) There are methods like System.gc () and Runtime.gc () which is used to send request of Garbage collection to JVM but it’s not guaranteed that garbage collection will happen.
8) If there is no memory space for creating new object in Heap Java Virtual Machine throws OutOfMemoryError or java.lang.OutOfMemoryError heap space
9) J2SE 5(Java 2 Standard Edition) adds a new feature called Ergonomics goal of ergonomics is to provide good performance from the JVM with minimum of command line tuning.

Read more: http://javarevisited.blogspot.com/2011/04/garbage-collection-in-java.html#ixzz1vrL0LII4