LRB-1380/3
RPN:jld:nwn
2007 - 2008 LEGISLATURE
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
1An Act to amend 812.35 (5), 812.35 (6), 812.38 (2), 812.40, 812.44 (3) (form) and
2812.44 (4) (form) of the statutes;
relating to: extending the period of wage
3garnishment.
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
1Section
1. 812.35 (5) of the statutes is amended to read:
AB236,2,82
812.35
(5) Upon being served, the garnishee shall determine whether the
3garnishee may become obligated to the debtor for earnings earned within pay periods
4beginning within
13 52 weeks after the date of service. If it is unlikely that the
5garnishee will become so obligated, the garnishee shall send a statement of that fact
6to the creditor by the end of the 7th business day after receiving the earnings
7garnishment form under sub. (3). The creditor shall send a copy of this statement
8to the court within 7 business days after receipt of the statement.
AB236, s. 2
9Section
2. 812.35 (6) of the statutes is amended to read:
AB236,2,2110
812.35
(6) If the garnishee may become obligated to the debtor for earnings
11earned within pay periods beginning within
13 52 weeks after the date of service, but
12one or more earnings garnishments against the debtor have already been served on
13the garnishee and not terminated, the garnishee shall retain the earnings
14garnishment form and place the garnishment into effect the pay period after the last
15of any prior earnings garnishments terminates. The garnishee shall notify the
16debtor of the amount of the garnishment and shall notify the creditor of the amount
17owed on the pending garnishments by the end of the 7th business day after receipt
18of the garnishment form under sub. (3). If, before the earnings garnishment takes
19effect, the garnishee determines that it is unlikely that the garnishee will continue
20to be obligated to the debtor for earnings, the garnishee shall notify the creditor and
21court under sub. (5) within 7 business days after making that determination.
AB236, s. 3
22Section
3. 812.38 (2) of the statutes is amended to read:
AB236,3,923
812.38
(2) A motion or petition under sub. (1) may be made at any time during
24the pendency of the earnings garnishment. Within 5 business days after a motion
25or petition is filed under sub. (1), the court shall schedule the matter for a hearing
1to be held as promptly as practicable. The court shall notify the parties of the time
2and place of the hearing. Upon conclusion of the hearing, the court shall make
3findings of fact and conclusions of law. The court shall make such order as required
4by these findings and conclusions. If the order permits the garnishment to proceed,
5the date on which the order is served upon the garnishee shall substitute for the
6original date of service of the garnishment upon the garnishee under s. 812.35 (3) for
7the purpose of determining any
13-week 52-week period under s. 812.35 (5) or (6).
8A court order shall bind the garnishee from the time the order is served upon him or
9her.
AB236, s. 4
10Section
4. 812.40 of the statutes is amended to read:
AB236,3,22
11812.40 Stipulated extension. At any time while an earnings garnishment
12is in effect, the debtor and creditor may stipulate in writing to an extension of the
13earnings garnishment for additional pay periods. The extension may commence on
14the first day after the earnings garnishment ends and shall end within
13 26 weeks
15after the last day of the last pay period affected by the earnings garnishment. The
16garnishee shall be bound by the extension if a copy of the stipulation is delivered or
17mailed to the garnishee, together with an additional garnishee fee under s. 812.33,
18before the last day of the last pay period affected by the earnings garnishment or any
19prior stipulated extension of the earnings garnishment. A stipulated extension is
20void and the garnishee fee shall be refunded if, prior to the last day of the last pay
21period affected by the earnings garnishment, the garnishee is served under s. 812.35
22(3) by a creditor seeking to satisfy a different judgment against the debtor.
AB236, s. 5
23Section
5. 812.44 (3) (form) of the statutes is amended to read:
AB236,3,2424
812.44
(3) (form)
AB236,3,2525
STATE OF WISCONSIN
AB236,4,1
1CIRCUIT COURT:.... County
AB236,4,33
A.B., Creditor
AB236,4,44
vs. File or Reference Number....
AB236,4,55
C.D., Debtor EARNINGS
AB236,4,66
and GARNISHMENT
AB236,4,77
E.F., Garnishee
AB236,4,99
THE STATE OF WISCONSIN, To the garnishee:
AB236,4,1110
The creditor has been awarded a court judgment that has not been paid. As a
11result, the creditor claims that a total of $.... is owed by the debtor, as follows:
AB236,4,1212
A. Unpaid balance on judgment $....
AB236,4,1313
B. Unpaid postjudgment interest $....
AB236,4,1514
C. Costs of this earnings garnishment
15
(estimated) $....
AB236,4,1917
The creditor believes that you will owe the debtor for earnings within the next
1813 52 weeks. If the $15 fee is tendered with these papers, you are directed by the
19court to do the following:
AB236,4,2020
DETERMINE WHETHER YOU WILL
AB236,4,2121
OWE THE DEBTOR EARNINGS
AB236,4,2322
1. Determine if you are likely to owe the debtor for earnings in pay periods
23beginning within the next
13 52 weeks.
AB236,5,3
12. If you are not likely to owe the debtor for earnings in pay periods beginning
2within the next
13 52 weeks, send a statement stating that fact to the creditor by the
3end of the 7th business day after receiving the earnings garnishment forms.
AB236,5,44
IF THE DEBTOR SENDS YOU AN ANSWER
AB236,5,75
3. Whenever you receive a debtor's answer form from the debtor, mail a copy of
6the answer form to the creditor by the end of the 3rd business day after receipt of that
7form. Include the date you received the answer form on the copy sent to the creditor.
AB236,5,108
4. If the debtor's answer form claims a complete exemption or defense, do not
9withhold or pay to the creditor any part of the debtor's earnings under this
10garnishment unless you receive an order of the court directing you to do so.
AB236,5,1111
MULTIPLE EARNINGS GARNISHMENTS
AB236,5,1912
5. If the debtor's earnings are already being garnisheed when you receive this
13earnings garnishment, place this earnings garnishment into effect the pay period
14after the last of any prior earnings garnishments terminates. Notify the debtor of
15the amount of the garnishment and notify the creditor of the amount owed on the
16pending garnishments by the end of the 7th business day after you receive these
17forms. If there are no prior pending earnings garnishments against the debtor's
18earnings, place this earnings garnishment into effect the pay period after you receive
19it.
AB236,5,2120
EARNINGS GARNISHMENTS LAST
13 52 WEEKS,
21
EXCEPT FOR PUBLIC EMPLOYEES
AB236,6,622
6. The garnishment of the earnings of employees of the state of Wisconsin and
23its political subdivisions remain in effect until the judgment is satisfied. The
24garnishment of earnings of other employees will affect the debtor's earnings for all
25pay periods beginning within
13 52 weeks after you receive it, unless the debtor's
1earnings are already being garnisheed. If this earnings garnishment is delayed
2under paragraph 5, above, it will affect the debtor's earnings for all pay periods
3beginning within
13 52 weeks after the first day of the pay period that you put this
4earnings garnishment into effect. If the amount claimed by the creditor is fully paid
5before the end of the
13 52 weeks, this earnings garnishment will terminate at that
6point.
AB236,6,77
PAYING THE CREDITOR
AB236,6,108
7. Between 5 and 10 business days after each payday of a pay period affected
9by this earnings garnishment, pay the creditor 20% of the debtor's disposable
10earnings for that pay period. Payment is complete upon mailing.
AB236,6,1111
EFFECT OF COURT-ORDERED
AB236,6,1212
ASSIGNMENTS FOR SUPPORT
AB236,6,2013
8. If the debtor has assigned his or her earnings for support by court order, those
14support payments take priority over this earnings garnishment. If 25% or more of
15the debtor's disposable earnings is assigned for support by court order, do not pay any
16part of the debtor's earnings to the creditor. Instead, send the creditor a statement
17of that fact by the end of the 7th business day after you receive these forms. If less
18than 25% of the debtor's earnings is assigned for support by court order, the amount
19the creditor must be paid is reduced so that the total of earnings assigned and
20garnisheed does not exceed 25% of the debtor's disposable earnings.
AB236,7,322
9. The debtor and creditor may agree in writing to extend this earnings
23garnishment for additional pay periods beginning within
13 26 weeks after this
24earnings garnishment would otherwise terminate. If you receive a written extension
25stipulation, and an additional garnishee fee for each extension, you must honor it
1unless a different garnishment against this debtor's earnings is served upon you
2before the extension takes effect. In that case, the extension is void and you must
3return the extension fee to the party who paid it to you.