RPN:cmh:pg
2003 - 2004 LEGISLATURE
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
1An Act to amend 812.30 (8), 812.44 (4) (form) and 812.44 (5) (form); and
to
2create 812.34 (2) (b) 3. of the statutes;
relating to: garnishment of the income
3of 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
1Section
1. 812.30 (8) of the statutes is amended to read:
AB346,2,112
812.30
(8) "Household income" means the disposable earnings of the debtor
3and dependents during any month in which the garnishment is in effect, plus
4unearned income received by the debtor and dependents in that month, less any of
5the debtor's earnings assigned by court order under ch. 767.
If the debtor is a minor,
6other than an emancipated minor, as defined in s. 48.375 (2) (e), "household income"
7means the disposable earnings of the debtor, of the parent that the debtor resides
8with for at least 50% of the month, and of the parent's dependents during any month
9in which the garnishment is in effect, plus unearned income received by the debtor,
10the parent, and the parent's dependents in that month, less any of the debtor's and
11the parent's earnings assigned by court order under ch. 767.
AB346, s. 2
12Section
2. 812.34 (2) (b) 3. of the statutes is created to read:
AB346,2,1613
812.34
(2) (b) 3. The debtor is a minor, other than an emancipated minor, as
14defined in s. 48.375 (2) (e), and the judgment that the creditor is seeking to satisfy
15is not a judgment for unpaid restitution, costs, a forfeiture, or a surcharge entered
16by the juvenile court under s. 895.035 (2m) (a) or (b).
AB346, s. 3
17Section
3. 812.44 (4) (form) of the statutes is amended to read:
AB346,3,1
1812.44
(4) (form)
AB346,3,22
STATE OF WISCONSIN
AB346,3,33
CIRCUIT COURT:.... County
AB346,3,55
A.B., Creditor
AB346,3,66
vs. File or Reference Number....
AB346,3,77
C.D., Debtor EXEMPTION NOTICE
AB346,3,88
and EARNINGS GARNISHMENT
AB346,3,99
E.F., Garnishee
AB346,3,1111
To the debtor:
AB346,3,1712
The creditor was awarded a judgment against you or your spouse by.... (County
13Circuit or Federal District) Court on the.... day of...., .... (year) That judgment not
14having been fully paid, the creditor has now filed a garnishment proceeding against
15your earnings from the garnishee. This means that the creditor is seeking to take
16some of your earnings to satisfy part or all of the judgment against you or your
17spouse.
AB346,3,1818
The total amount of the creditor's claim is as follows:
AB346,3,1919
Unpaid balance on judgment $....
AB346,3,2020
Unpaid postjudgment interest $....
AB346,3,2222
a. Garnishment filing fee $....
AB346,3,2323
b. Garnishee fee $....
AB346,3,2424
c. Service of process (estimate) $....
AB346,4,3
1By law, you are entitled to an exemption of not less than 80% of your disposable
2earnings. Your "disposable earnings" are those remaining after social security and
3federal and state income taxes are withheld.
AB346,4,44
Your earnings are completely exempt from garnishment if:
AB346,4,75
1. Your household income is below the federal poverty level, or this
6garnishment would cause that to happen. See the enclosed schedules and worksheet
7to determine if you qualify for this exemption.
AB346,4,128
2. You receive aid to families with dependent children, relief funded by a relief
9block grant under ch. 49, relief provided by counties under section 59.53 (21) of the
10Wisconsin Statutes, medical assistance, supplemental security income, food stamps,
11or veterans benefits based on need under
38 USC 501 to
562 or section
45.
351 (1) of
12the Wisconsin Statutes, or have received these benefits within the past 6 months.
AB346,4,1413
3. At least 25% of your disposable earnings are assigned by court order for
14support.
AB346,4,18
154. You are an unemancipated minor and the judgment that the creditor is
16seeking to satisfy is not a judgment for unpaid restitution, costs, a forfeiture, or a
17surcharge entered by the juvenile court under section 895.035 (2m) (a) or (b) of the
18Wisconsin Statutes.
AB346,4,2119
If you qualify for a complete exemption, you must give or mail a copy of the
20enclosed debtor's answer form to the garnishee in order to receive that increased
21exemption.
AB346,4,2322
If your circumstances change while the garnishment is in effect, you may file
23a new answer at any time.
AB346,5,224
If you do not qualify for a complete exemption, but you will not be able to acquire
25the necessities of life for yourself and your dependents if your earnings are reduced
1by this earnings garnishment, you may ask the court in which this earnings
2garnishment was filed to increase your exemption or grant you other relief.
AB346,5,43
IF YOU NEED ASSISTANCE
4
CONSULT AN ATTORNEY
AB346,5,105
If you have earnings that are being garnisheed that are exempt or subject to a
6defense, the sooner you file your answer or seek relief from the court, the sooner such
7relief can be provided. This earnings garnishment affects your earnings in pay
8periods beginning within 13 weeks after it was served on the garnishee. You may
9agree in writing with the creditor to extend it for additional 13-week periods until
10the debt is paid.
AB346,5,1412
If you wrongly claim an exemption or defense in bad faith, or if the creditor
13wrongly objects to your claim in bad faith, the court may order the person who acted
14in bad faith to pay court costs, actual damages and reasonable attorney fees.
AB346, s. 4
15Section
4. 812.44 (5) (form) of the statutes is amended to read:
AB346,5,1616
812.44
(5) (form)
AB346,5,1717
STATE OF WISCONSIN
AB346,5,1818
CIRCUIT COURT:.... County
AB346,5,2020
A.B., Creditor
AB346,5,2121
vs. File or Reference Number....
AB346,5,2222
C.D., Debtor EARNINGS GARNISHMENT
AB346,5,2323
and DEBTOR'S ANSWER
AB346,5,2424
E.F., Garnishee
AB346,6,22
To the garnishee:
AB346,6,33
My earnings are COMPLETELY EXEMPT from earnings garnishment because:
AB346,6,44
... 1. The judgment has been paid or is void.
AB346,6,105
... 2.
(5) (form) paragraph 2. I receive, am eligible for, or have within 6 months
6received, aid to families with dependent children, relief funded by a relief block grant
7under ch. 49, relief provided by counties under section 59.53 (21) of the Wisconsin
8Statutes, medical assistance, supplemental security income, food stamps, or
9veterans benefits based on need under
38 USC 501 to
562 or section
45.
351 (1) of the
10Wisconsin Statutes.
AB346,6,1111
... 3. At least 25% of my disposable earnings are assigned for support by court order.
AB346,6,1312
... 4. My household income is less than the poverty line, or this garnishment would
13cause that to happen.
AB346,6,17
14... 4m. I am an unemancipated minor and the judgment that the creditor is seeking
15to satisfy is not a judgment for unpaid restitution, costs, a forfeiture, or a surcharge
16entered by the juvenile court under section 895.035 (2m) (a) or (b) of the Wisconsin
17Statutes.
AB346,6,1818
... 5. I have another defense to this earnings garnishment (explain briefly).
AB346,6,2221
I understand that if I claim a complete exemption or defense in bad faith, I may
22be held liable to the creditor for actual damages, costs and reasonable attorney fees.
AB346,6,2323
DATE .... Signature of Debtor ....
AB346,6,2424
Address ....
AB346,6,2525
Telephone Number ....
AB346,7,1
1Date Received by Garnishee ....
