AB789: Bill Text

LRB-3572/1

MJL:kmg:jf

2003 - 2004 LEGISLATURE

2003 Assembly BILL 789

February 2, 2004 - Introduced by Representatives Krusick, Ainsworth, Albers, Nass, Owens and Stone, cosponsored by Senator Zien. Referred to Committee on Judiciary.

AB789,1,3 An Act to repeal 812.40 and 812.42 (2) (b); and to amend 812.33, 812.35 (5), 812.35 (6), 812.44 (3) (form) and 812.44 (4) (form) of the statutes; relating to: continuous garnishment of earnings.

Analysis by the Legislative Reference Bureau

Under current law, unless a garnishee is the state or a political subdivision of the state, a garnishment of earnings affects the debtor's earnings for all pay periods beginning within 13 weeks after the garnishment summons is served on the garnishee. The debtor and creditor may stipulate to successive 13-week extensions if no other creditors are attempting to garnish the debtor's earning and if the garnishee is paid an additional garnishee fee. If the garnishee is the state or a political subdivision, the garnishment stays in effect until the judgment is satisfied.

This bill provides that all garnishments of earnings stay in effect until the judgment is satisfied.

For further information see the 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:

AB789, s. 1 Section 1. 812.33 of the statutes is amended to read:

AB789,2,4 812.33 Garnishee fee. The creditor shall pay a $15 fee to the garnishee for each earnings garnishment or each stipulated extension of that earnings garnishment. This fee shall be included as a cost in the creditor's claim in the earnings garnishment.

AB789, s. 2 Section 2. 812.35 (5) of the statutes is amended to read:

AB789,2,12 812.35 (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 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.

AB789, s. 3 Section 3. 812.35 (6) of the statutes is amended to read:

AB789,2,25 812.35 (6) If the garnishee may become obligated to the debtor for earnings earned within pay periods beginning within 13 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.

AB789, s. 4 Section 4. 812.40 of the statutes is repealed.

AB789, s. 5 Section 5. 812.42 (2) (b) of the statutes is repealed.

AB789, s. 6 Section 6. 812.44 (3) (form) of the statutes is amended to read:

AB789,3,4 812.44 (3) (form)

AB789,3,5 STATE OF WISCONSIN

AB789,3,6 CIRCUIT COURT:.... County

AB789,3,8 A.B., Creditor

AB789,3,9 vs.                           File or Reference Number....

AB789,3,10 C.D., Debtor                                       EARNINGS

AB789,3,11 and                                   GARNISHMENT

AB789,3,12 E.F., Garnishee

AB789,3,14 THE STATE OF WISCONSIN, To the garnishee:

AB789,3,16 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:

AB789,3,17 A. Unpaid balance on judgment                      $....

AB789,3,18 B. Unpaid postjudgment interest                     $....

AB789,3,19 C. Costs of this earnings garnishment

AB789,3,20 (estimated)                                 $....

AB789,3,21 TOTAL                                        $....

AB789,3,24 The creditor believes that you will owe the debtor for earnings within the next 13 weeks. If the $15 fee is tendered with these papers, you are directed by the court to do the following:

AB789,4,2 DETERMINE WHETHER YOU WILL OWE THE DEBTOR EARNINGS

AB789,4,4 1. Determine if you are likely to owe the debtor for earnings in pay periods beginning within the next 13 weeks after the date of service.

AB789,4,8 2. If you are not likely to owe the debtor for earnings in pay periods beginning within the next 13 weeks after the date of service, send a statement stating that fact to the creditor by the end of the 7th business day after receiving the earnings garnishment forms.

AB789,4,10 IF THE DEBTOR SENDS YOU AN ANSWER

AB789,4,14 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.

AB789,4,17 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.

AB789,4,19 MULTIPLE EARNINGS GARNISHMENTS

AB789,5,2 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.

AB789,5,4 EARNINGS GARNISHMENTS LAST 13 WEEKS,

AB789,5,5 EXCEPT FOR PUBLIC EMPLOYEES

AB789,5,15 6. The garnishment of the earnings of employees of the state of Wisconsin and its political subdivisions remain remains 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 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 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 weeks, this earnings garnishment will terminate at that point.

AB789,5,16 PAYING THE CREDITOR

AB789,5,19 7. Between 5 and 10 business days after each payday of a pay period affected by this earnings garnishment, pay the creditor 20% of the debtor's disposable earnings for that pay period. Payment is complete upon mailing.

AB789,5,21 EFFECT OF COURT-ORDERED ASSIGNMENTS FOR SUPPORT

AB789,6,4 8. If the debtor has assigned his or her earnings for support by court order, those support payments take priority over this earnings garnishment. If 25% or more of the debtor's disposable earnings is assigned for support by court order, do not pay any part of the debtor's earnings to the creditor. Instead, send the creditor a statement of that fact by the end of the 7th business day after you receive these forms. If less than 25% of the debtor's earnings is assigned for support by court order, the amount the creditor must be paid is reduced so that the total of earnings assigned and garnisheed does not exceed 25% of the debtor's disposable earnings.