AB236: Bill Text

LRB-1380/3

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2007 - 2008 LEGISLATURE

2007 Assembly BILL 236

April 10, 2007 - Introduced by Representatives Sheridan, Krusick, Staskunas, Nass and Albers, cosponsored by Senators Coggs, Lassa, Olsen and Roessler. Referred to Committee on Corrections and Courts.

AB236,1,3 An Act to amend 812.35 (5), 812.35 (6), 812.38 (2), 812.40, 812.44 (3) (form) and 812.44 (4) (form) of the statutes; relating to: extending the period of wage garnishment.

Analysis by the Legislative Reference Bureau

Under current law, a wage garnishment for public employees is in effect until the garnishment is paid while for nonpublic employees the wage garnishment is in effect for wages earned within pay periods beginning within 13 weeks after the date of service of the garnishment on the wage earner's employer. If the debt is satisfied before the end of that period, the garnishment ends. Current law allows the nonpublic employee debtor and creditor to agree in writing to an extension of the garnishment for an additional 13-week period. If another creditor serves a garnishment action on the debtor before the end of the first 13-week period, any agreed-upon extension of the first garnishment is void.

This bill increases the effect of an original wage garnishment for nonpublic employees to 52 weeks with the right to extend the garnishment for another 26 weeks, subject to any intervening garnishment.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

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

AB236, s. 1 Section 1. 812.35 (5) of the statutes is amended to read:

AB236,2,8 812.35 (5) Upon being served, the garnishee shall determine whether the garnishee may become obligated to the debtor for earnings earned within pay periods beginning within 13 52 weeks after the date of service. If it is unlikely that the garnishee will become so obligated, the garnishee shall send a statement of that fact to the creditor by the end of the 7th business day after receiving the earnings garnishment form under sub. (3). The creditor shall send a copy of this statement to the court within 7 business days after receipt of the statement.

AB236, s. 2 Section 2. 812.35 (6) of the statutes is amended to read:

AB236,2,21 812.35 (6) If the garnishee may become obligated to the debtor for earnings earned within pay periods beginning within 13 52 weeks after the date of service, but one or more earnings garnishments against the debtor have already been served on the garnishee and not terminated, the garnishee shall retain the earnings garnishment form and place the garnishment into effect the pay period after the last of any prior earnings garnishments terminates. The garnishee shall notify the debtor of the amount of the garnishment and shall notify the creditor of the amount owed on the pending garnishments by the end of the 7th business day after receipt of the garnishment form under sub. (3). If, before the earnings garnishment takes effect, the garnishee determines that it is unlikely that the garnishee will continue to be obligated to the debtor for earnings, the garnishee shall notify the creditor and court under sub. (5) within 7 business days after making that determination.

AB236, s. 3 Section 3. 812.38 (2) of the statutes is amended to read:

AB236,3,9 812.38 (2) A motion or petition under sub. (1) may be made at any time during the pendency of the earnings garnishment. Within 5 business days after a motion or petition is filed under sub. (1), the court shall schedule the matter for a hearing to be held as promptly as practicable. The court shall notify the parties of the time and place of the hearing. Upon conclusion of the hearing, the court shall make findings of fact and conclusions of law. The court shall make such order as required by these findings and conclusions. If the order permits the garnishment to proceed, the date on which the order is served upon the garnishee shall substitute for the original date of service of the garnishment upon the garnishee under s. 812.35 (3) for the purpose of determining any 13-week 52-week period under s. 812.35 (5) or (6). A court order shall bind the garnishee from the time the order is served upon him or her.

AB236, s. 4 Section 4. 812.40 of the statutes is amended to read:

AB236,3,22 812.40 Stipulated extension. At any time while an earnings garnishment is in effect, the debtor and creditor may stipulate in writing to an extension of the earnings garnishment for additional pay periods. The extension may commence on the first day after the earnings garnishment ends and shall end within 13 26 weeks after the last day of the last pay period affected by the earnings garnishment. The garnishee shall be bound by the extension if a copy of the stipulation is delivered or mailed to the garnishee, together with an additional garnishee fee under s. 812.33, before the last day of the last pay period affected by the earnings garnishment or any prior stipulated extension of the earnings garnishment. A stipulated extension is void and the garnishee fee shall be refunded if, prior to the last day of the last pay period affected by the earnings garnishment, the garnishee is served under s. 812.35 (3) by a creditor seeking to satisfy a different judgment against the debtor.

AB236, s. 5 Section 5. 812.44 (3) (form) of the statutes is amended to read:

AB236,3,24 812.44 (3) (form)

AB236,3,25 STATE OF WISCONSIN

AB236,4,1 CIRCUIT COURT:.... County

AB236,4,3 A.B., Creditor

AB236,4,4 vs. File or Reference Number....

AB236,4,5 C.D., Debtor EARNINGS

AB236,4,6 and GARNISHMENT

AB236,4,7 E.F., Garnishee

AB236,4,9 THE STATE OF WISCONSIN, To the garnishee:

AB236,4,11 The creditor has been awarded a court judgment that has not been paid. As a result, the creditor claims that a total of $.... is owed by the debtor, as follows:

AB236,4,12 A. Unpaid balance on judgment $....

AB236,4,13 B. Unpaid postjudgment interest $....

AB236,4,15 C. Costs of this earnings garnishment (estimated) $....

AB236,4,16 TOTAL $....

AB236,4,19 The creditor believes that you will owe the debtor for earnings within the next 13 52 weeks. If the $15 fee is tendered with these papers, you are directed by the court to do the following:

AB236,4,20 DETERMINE WHETHER YOU WILL

AB236,4,21 OWE THE DEBTOR EARNINGS

AB236,4,23 1. Determine if you are likely to owe the debtor for earnings in pay periods beginning within the next 13 52 weeks.

AB236,5,3 2. If you are not likely to owe the debtor for earnings in pay periods beginning within the next 13 52 weeks, send a statement stating that fact to the creditor by the end of the 7th business day after receiving the earnings garnishment forms.

AB236,5,4 IF THE DEBTOR SENDS YOU AN ANSWER

AB236,5,7 3. Whenever you receive a debtor's answer form from the debtor, mail a copy of the answer form to the creditor by the end of the 3rd business day after receipt of that form. Include the date you received the answer form on the copy sent to the creditor.

AB236,5,10 4. If the debtor's answer form claims a complete exemption or defense, do not withhold or pay to the creditor any part of the debtor's earnings under this garnishment unless you receive an order of the court directing you to do so.

AB236,5,11 MULTIPLE EARNINGS GARNISHMENTS

AB236,5,19 5. If the debtor's earnings are already being garnisheed when you receive this earnings garnishment, place this earnings garnishment into effect the pay period after the last of any prior earnings garnishments terminates. Notify the debtor of the amount of the garnishment and notify the creditor of the amount owed on the pending garnishments by the end of the 7th business day after you receive these forms. If there are no prior pending earnings garnishments against the debtor's earnings, place this earnings garnishment into effect the pay period after you receive it.

AB236,5,21 EARNINGS GARNISHMENTS LAST 13 52 WEEKS, EXCEPT FOR PUBLIC EMPLOYEES

AB236,6,6 6. The garnishment of the earnings of employees of the state of Wisconsin and its political subdivisions remain in effect until the judgment is satisfied. The garnishment of earnings of other employees will affect the debtor's earnings for all pay periods beginning within 13 52 weeks after you receive it, unless the debtor's earnings are already being garnisheed. If this earnings garnishment is delayed under paragraph 5, above, it will affect the debtor's earnings for all pay periods beginning within 13 52 weeks after the first day of the pay period that you put this earnings garnishment into effect. If the amount claimed by the creditor is fully paid before the end of the 13 52 weeks, this earnings garnishment will terminate at that point.

AB236,6,7 PAYING THE CREDITOR