LRB-2636/1
RPN:jlg&mfd:hmh
1997 - 1998 LEGISLATURE
March 17, 1998 - Introduced by Representatives Green and Murat, cosponsored
by Senators Panzer and Shibilski. Referred to Committee on Judiciary.
AB924,1,11 1An Act to amend 799.01 (1) (c), 799.01 (1) (d) (intro.), 799.01 (2), 812.34 (1) (a),
2812.34 (2) (b) (intro.) and 1., 812.37 (1), 812.37 (2), 812.38 (1) (b), 812.38 (2),
3812.44 (3) (form) 3., 812.44 (4) (form) 3., 814.04 (1) (a), 815.18 (3) (k), 895.035
4(2), 895.80 (2), 895.80 (3) (b), 943.245 (3), 943.245 (4), 943.50 (3), 943.51 (3) and
5943.51 (3m); to repeal and recreate 895.80 (3) (a) and 895.80 (4); and to
6create
757.69 (1) (n), 812.34 (2) (c), 895.08, 895.80 (3) (c) and 895.80 (6) of the
7statutes; relating to: parental liability for acts of their minor child, recovery
8of damages for certain criminal actions, increasing the jurisdictional amount
9in small claims court, powers of court commissioners, garnishment, attorney
10fees, exemption from execution of accounts, assignment of debt, earnings
11garnishment retail theft and recovery in actions involving worthless checks.
Analysis by the Legislative Reference Bureau
This bill increases the jurisdictional limit in small claims actions from $5,000
to $7,500 and increases the statutory attorney fees, including increasing the
maximum fee from $100 to $200.

Under current law, the earnings exemption in earnings garnishment actions
provides that a debtor's earnings are totally exempt if the debtor's income is below
the poverty line or if the garnishment would cause that result. Under this bill, a
debtor's earnings are totally exempt if the debtor's income is below the poverty line,
but if the garnishment would result in the debtor's income being below the poverty
line, the amount garnished is limited to the debtor's income in excess of the poverty
line. The bill requires debtors who claim earnings exemptions to submit with their
answer to the garnishment the schedules and worksheets that were given to them
with the garnishment, plus any supporting documents. The bill restricts the
exemption from execution for depository accounts to those depository accounts that
are for the debtor's personal use.
The bill allows any person to assign a debt owed to that person. The bill requires
the person assigning a debt to notify the debtor within 30 days of that assignment.
Under the bill, if the notice is not sent within 30 days, the assignment is ineffective
until the notice is sent.
Under current law, a person who suffers damage as a result of certain crimes
against property may sue the person that caused the damage. Currently, the person
may recover treble damages plus the costs of the investigation and litigation. Under
the bill, the person may recover his or her actual damages, including the value of the
damaged property, the court costs, the costs of the investigation and litigation,
including attorney fees and the value of the time spent by an employe, and exemplary
damages of not more than 3 times the amount of actual damages. Any recovery is
reduced by any amount received as restitution.
Current law provides that the total amount a person may receive for exemplary
damages and attorney fees in an action to recover damages resulting from the
issuance of a worthless check or retail theft is limited to $500. This bill provides that
the $500 limit applies for each violation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB924, s. 1 1Section 1. 757.69 (1) (n) of the statutes is created to read:
AB924,2,22 757.69 (1) (n) Hold hearings, make findings and issue orders under s. 812.38.
AB924, s. 2 3Section 2. 799.01 (1) (c) of the statutes is amended to read:
AB924,2,54 799.01 (1) (c) Replevins. Actions for replevin under ss. 810.01 to 810.13 where
5the value of the property claimed does not exceed $5,000 $7,500.
AB924, s. 3 6Section 3. 799.01 (1) (d) (intro.) of the statutes is amended to read:
AB924,3,2
1799.01 (1) (d) Other civil actions. (intro.) Other civil actions where the amount
2claimed is $5,000 $7,500 or less, if the actions or proceedings are:
AB924, s. 4 3Section 4. 799.01 (2) of the statutes is amended to read:
AB924,3,74 799.01 (2) Permissive use of small claims procedure. A taxing authority may
5use the procedure in this chapter in an action to recover a tax from a person liable
6for that tax where the amount claimed, including interest and penalties, is $5,000
7$7,500 or less. This chapter is not the exclusive procedure for those actions.
AB924, s. 5 8Section 5. 812.34 (1) (a) of the statutes is amended to read:
AB924,3,109 812.34 (1) (a) Was ordered by a court under s. 128.21 or by a court of bankruptcy
10under Title 11, USC 1301 et. seq.
AB924, s. 6 11Section 6. 812.34 (2) (b) (intro.) and 1. of the statutes are amended to read:
AB924,3,1312 812.34 (2) (b) (intro.) The debtor's earnings are totally exempt from
13garnishment under this subchapter if:
AB924,3,1514 1. The debtor's household income is below the poverty line, or the garnishment
15would cause that result
; or
AB924, s. 7 16Section 7. 812.34 (2) (c) of the statutes is created to read:
AB924,3,2017 812.34 (2) (c) If a garnishment under this subchapter would result in the
18debtor's household income being below the poverty line, the amount of the
19garnishment is limited to the debtor's household income in excess of the poverty line
20before the garnishment is in effect.
AB924, s. 8 21Section 8. 812.37 (1) of the statutes is amended to read:
AB924,4,522 812.37 (1) The debtor may claim an exemption under s. 812.34 (2) (b), or assert
23any defense to the earnings garnishment, by completing the answer form and
24delivering or mailing it to the garnishee, along with the schedules and worksheets
25provided under s. 812.35 (4) (b) and any other documents supporting his or her

1answer, such as a wage statement, a court order regarding the payment of support
2or a document showing the receipt of any of the benefits listed under s. 812.44 (4)
3(form) 2
. The debtor or debtor's spouse may file an answer or an amended answer
4and documentation at any time before or during the effective period of the earnings
5garnishment.
AB924, s. 9 6Section 9. 812.37 (2) of the statutes is amended to read:
AB924,4,127 812.37 (2) Whenever the garnishee receives a debtor's answer or amended
8answer and the schedules, worksheets and other documents, the garnishee shall
9mail a copy of the answer, schedules, worksheets and any other documents the debtor
10included with the answer
to the creditor by the end of the 3rd business day after
11receiving the debtor's answer and documents, writing on that copy the date of receipt
12of the answer and documents by the garnishee.
AB924, s. 10 13Section 10. 812.38 (1) (b) of the statutes is amended to read:
AB924,4,1914 812.38 (1) (b) The debtor may file with the court a written petition for relief
15from the earnings garnishment if the exemption percentage under s. 812.34 is
16insufficient for the debtor to acquire the necessities of life for the debtor and his or
17her dependents. The petition shall state with reasonable specificity the grounds for
18the relief requested and shall include any additional information necessary to
19support the petition.
AB924, s. 11 20Section 11. 812.38 (2) of the statutes is amended to read:
AB924,5,1121 812.38 (2) A motion or petition under sub. (1) may be made at any time during
22the pendency of the earnings garnishment. Within 5 business days after a motion
23or petition is filed under sub. (1), the court shall schedule the matter for a hearing
24to be held as promptly as practicable. The court shall notify the parties of the time
25and place of the hearing. Upon conclusion of the hearing, the court shall make

1findings of fact and conclusions of law. If the debtor has failed to produce the
2schedules and worksheets or other documents necessary to support a claim for
3exemptions or other defenses, the court shall award the creditor his or her costs
4related to the motion in an amount of not less than $50. An award under this
5subsection may not substitute for or replace an award made under sub. (3).
The court
6shall make such order as required by these findings and conclusions. If the order
7permits the garnishment to proceed, the date on which the order is served upon the
8garnishee shall substitute for the original date of service of the garnishment upon
9the garnishee under s. 812.35 (3) for the purpose of determining any 13-week period
10under s. 812.35 (5) or (6). A court order shall bind the garnishee from the time the
11order is served upon him or her.
AB924, s. 12 12Section 12. 812.44 (3) (form) 3. of the statutes is amended to read:
AB924,5,1613 812.44 (3) (form) 3. Whenever you receive a debtor's answer form from the
14debtor, mail a copy of the answer form and any documents the debtor included with
15the answer
to the creditor by the end of the 3rd business day after receipt of that form.
16Include the date you received the answer form on the copy sent to the creditor.
AB924, s. 13 17Section 13. 812.44 (4) (form) 3. of the statutes is amended to read:
AB924,5,1918 812.44 (4) (form) 3. At least 25% of your disposable earnings are assigned by
19court order for support.
AB924,5,2520 If you qualify for a complete exemption, you must give or mail a copy of the
21enclosed debtor's answer form to the garnishee, along with the schedules and
22worksheets and any other documents supporting your answer, such as a wage
23statement, a court order regarding the payment of support or a document showing
24the receipt of any of the benefits listed under paragraph 2 above
in order to receive
25that increased exemption.
AB924,6,2
1If your circumstances change while the garnishment is in effect, you may file
2a new answer at any time.
AB924,6,63 If you do not qualify for a complete exemption, but you will not be able to acquire
4the necessities of life for yourself and your dependents if your earnings are reduced
5by this earnings garnishment, you may ask the court in which this earnings
6garnishment was filed to increase your exemption or grant you other relief.
AB924,6,87 IF YOU NEED ASSISTANCE
8 CONSULT AN ATTORNEY
AB924,6,149 If you have earnings that are being garnisheed that are exempt or subject to a
10defense, the sooner you file your answer or seek relief from the court, the sooner such
11relief can be provided. This earnings garnishment affects your earnings in pay
12periods beginning within 13 weeks after it was served on the garnishee. You may
13agree in writing with the creditor to extend it for additional 13-week periods until
14the debt is paid.
AB924,6,1515 PENALTIES
AB924,6,1816 If you wrongly claim an exemption or defense in bad faith, or if the creditor
17wrongly objects to your claim in bad faith, the court may order the person who acted
18in bad faith to pay court costs, actual damages and reasonable attorney fees.
AB924, s. 14 19Section 14. 814.04 (1) (a) of the statutes is amended to read:
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