AB346: Bill Text

LRB-0740/1

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2003 - 2004 LEGISLATURE

2003 Assembly BILL 346

May 20, 2003 - Introduced by Representatives Owens, Van Roy, Jeskewitz, Townsend, Hahn, Ainsworth, Ladwig, Nass, Stone, Hines, Bies and Grothman, cosponsored by Senator Roessler. Referred to Committee on Judiciary.

AB346,1,3 An Act to amend 812.30 (8), 812.44 (4) (form) and 812.44 (5) (form); and to create 812.34 (2) (b) 3. of the statutes; relating to: garnishment of the income of a minor.

Analysis by the Legislative Reference Bureau

Under current law, a person who has a civil judgment for a debt may bring an action in circuit court to garnish the earnings of the person who owes the debt. The creditor is required to comply with specified court procedures when bringing the action, including serving one earnings garnishment form upon the debtor and the other form upon the person who is the debtor's employer. Currently, the debtor may claim an exemption from the garnishment or may assert a defense against the garnishment.

Under current law, 80% of the debtor's disposable earnings (earnings left after deducting social security, federal, and state taxes) are exempt from garnishment. In addition, if the debtor's household income is below the poverty level or if the debtor is receiving needs-based public assistance, all of the debtor's earnings are exempt from garnishment. Currently, "household income" for purposes of this exemption is defined to mean the disposable income of the debtor and the debtor's dependents during the month in which the garnishment is in effect, plus any unearned income received that month by the debtor and the debtor's dependents, minus any of the debtor's earnings assigned by a family court order. The family court may order the assignment of a person's earnings for the payment of child support, family support, or maintenance.

This bill includes in the definition of "household income," if the debtor is a minor other than an emancipated minor, the monthly disposable earnings of the debtor, of the parents of the debtor that the debtor lives with for at least 50% of the month, and of those parents' dependents, plus the unearned income of the debtor, parents, and dependents, minus any of the earnings of the debtor and parents that are assigned by a family court. The bill, however, exempts from garnishment all of an unemancipated minor's earnings if the judgment that the creditor is seeking to satisfy is not a judgment for unpaid restitution, costs, a forfeiture, or a surcharge entered by the court assigned to exercise jurisdiction under the juvenile justice code.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB346, s. 1 Section 1. 812.30 (8) of the statutes is amended to read:

AB346,2,11 812.30 (8) "Household income" means the disposable earnings of the debtor and dependents during any month in which the garnishment is in effect, plus unearned income received by the debtor and dependents in that month, less any of the debtor's earnings assigned by court order under ch. 767. If the debtor is a minor, other than an emancipated minor, as defined in s. 48.375 (2) (e), "household income" means the disposable earnings of the debtor, of the parent that the debtor resides with for at least 50% of the month, and of the parent's dependents during any month in which the garnishment is in effect, plus unearned income received by the debtor, the parent, and the parent's dependents in that month, less any of the debtor's and the parent's earnings assigned by court order under ch. 767.

AB346, s. 2 Section 2. 812.34 (2) (b) 3. of the statutes is created to read:

AB346,2,16 812.34 (2) (b) 3. The debtor is a minor, other than an emancipated minor, as defined in s. 48.375 (2) (e), and the judgment that the creditor is seeking to satisfy is not a judgment for unpaid restitution, costs, a forfeiture, or a surcharge entered by the juvenile court under s. 895.035 (2m) (a) or (b).

AB346, s. 3 Section 3. 812.44 (4) (form) of the statutes is amended to read:

AB346,3,1 812.44 (4) (form)

AB346,3,2 STATE OF WISCONSIN

AB346,3,3 CIRCUIT COURT:.... County

AB346,3,5 A.B., Creditor

AB346,3,6 vs. File or Reference Number....

AB346,3,7 C.D., Debtor EXEMPTION NOTICE

AB346,3,8 and EARNINGS GARNISHMENT

AB346,3,9 E.F., Garnishee

AB346,3,11 To the debtor:

AB346,3,17 The creditor was awarded a judgment against you or your spouse by.... (County Circuit or Federal District) Court on the.... day of...., .... (year) That judgment not having been fully paid, the creditor has now filed a garnishment proceeding against your earnings from the garnishee. This means that the creditor is seeking to take some of your earnings to satisfy part or all of the judgment against you or your spouse.

AB346,3,18 The total amount of the creditor's claim is as follows:

AB346,3,19 Unpaid balance on judgment $....

AB346,3,20 Unpaid postjudgment interest $....

AB346,3,21 Costs:

AB346,3,22 a. Garnishment filing fee $....

AB346,3,23 b. Garnishee fee $....

AB346,3,24 c. Service of process (estimate) $....

AB346,3,25 TOTAL $....

AB346,4,3 By law, you are entitled to an exemption of not less than 80% of your disposable earnings. Your "disposable earnings" are those remaining after social security and federal and state income taxes are withheld.

AB346,4,4 Your earnings are completely exempt from garnishment if:

AB346,4,7 1. Your household income is below the federal poverty level, or this garnishment would cause that to happen. See the enclosed schedules and worksheet to determine if you qualify for this exemption.

AB346,4,12 2. You receive aid to families with dependent children, relief funded by a relief block grant under ch. 49, relief provided by counties under section 59.53 (21) of the Wisconsin Statutes, medical assistance, supplemental security income, food stamps, or veterans benefits based on need under 38 USC 501 to 562 or section 45.351 (1) of the Wisconsin Statutes, or have received these benefits within the past 6 months.

AB346,4,14 3. At least 25% of your disposable earnings are assigned by court order for support.

AB346,4,18 4. You are an unemancipated minor and the judgment that the creditor is seeking to satisfy is not a judgment for unpaid restitution, costs, a forfeiture, or a surcharge entered by the juvenile court under section 895.035 (2m) (a) or (b) of the Wisconsin Statutes.

AB346,4,21 If you qualify for a complete exemption, you must give or mail a copy of the enclosed debtor's answer form to the garnishee in order to receive that increased exemption.

AB346,4,23 If your circumstances change while the garnishment is in effect, you may file a new answer at any time.

AB346,5,2 If you do not qualify for a complete exemption, but you will not be able to acquire the necessities of life for yourself and your dependents if your earnings are reduced by this earnings garnishment, you may ask the court in which this earnings garnishment was filed to increase your exemption or grant you other relief.

AB346,5,4 IF YOU NEED ASSISTANCE CONSULT AN ATTORNEY

AB346,5,10 If you have earnings that are being garnisheed that are exempt or subject to a defense, the sooner you file your answer or seek relief from the court, the sooner such relief can be provided. This earnings garnishment affects your earnings in pay periods beginning within 13 weeks after it was served on the garnishee. You may agree in writing with the creditor to extend it for additional 13-week periods until the debt is paid.

AB346,5,11 PENALTIES