Amendment AA3-AB476

AB476-AA3,4p Section 4p. 812.39 (1) (c) of the statutes is created to read:

AB476-AA3,3,9 812.39 (1) (c) Pay each creditor the amount determined under par. (b).

AB476-AA3,4s Section 4s. 812.39 (2) of the statutes is renumbered 812.39 (2) (a) and amended to read:

AB476-AA3,3,24 812.39 (2) (a) Court-ordered assignments of the debtor's earnings for support or maintenance under ch. 767, regardless of the date the garnishee first receives notice of the assignment, take priority over an earnings garnishment under this subchapter. If and take priority over a garnishment to satisfy an order for restitution under s. 973.20 (1r). Except as provided in par. (b), if the debtor's earnings are subject to assignment under s. 767.75, the creditor, including a creditor entitled to an earnings garnishment to satisfy an order for restitution under s. 973.20 (1r), shall not be entitled to an amount greater than 25 percent of the debtor's disposable earnings less the amount assigned under s. 767.75. If the garnishee determines that the amount to be garnished pursuant to an order under s. 767.75 is equal to or greater than 25 percent of the debtor's disposable earnings, the garnishee shall notify the creditor and the court under s. 812.35 (5) within 7 business days after making that determination.

AB476-AA3,4w Section 4w. 812.39 (2) (b) of the statutes is created to read:

AB476-AA3,4,4 812.39 (2) (b) If one or more earnings garnishments are in effect for a debtor whose earnings are subject to assignment under s. 767.75, the garnishee shall, if the amount assigned under s. 767.75 is less than 25 percent of the debtor's disposable earnings, do all of the following:

AB476-AA3,4,6 1. Determine the difference between 25 percent of the debtor's disposable income and the sum of the following:

AB476-AA3,4,7 a. The amount assigned under s. 767.75.

AB476-AA3,4,9 b. The amount, if any, to be garnished to satisfy an order for restitution under s. 973.20 (1r).

AB476-AA3,4,12 2. a. If the difference determined under subd. 1. is less than 25 percent of the debtor's disposable income, divide the difference under subd. 1. by the number of creditors.

AB476-AA3,4,13 b. Pay each creditor the amount determined under subd. 2. a.

AB476-AA3,4,16 3. If the difference determined under subd. 1. is 25 percent or more of the debtor's disposable income, notify the creditor and court under s. 812.35 (5) within 7 business days after making that determination.

AB476-AA3,4y Section 4y. 812.39 (2m) of the statutes is created to read:

AB476-AA3,4,25 812.39 (2m) (a) Court-ordered garnishment of the debtor's earnings to satisfy an order for restitution under s. 973.20 (1r), regardless of the date the garnishee first receives notice of the court-ordered garnishment, takes priority over an earnings garnishment under this subchapter. Subject to sub. (2), and except as provided in pars. (b) and (c), if the debtor's earnings are subject to garnishment under s. 973.20 (1r), the creditor shall not be entitled to an amount greater than 20 percent of the debtor's disposable earnings less the amount to be garnished pursuant to court order under s. 973.20 (1r).

AB476-AA3,5,3 (b) If one or more earnings garnishments are in effect for a debtor who owes restitution under s. 973.20 (1r), the garnishee shall, subject to sub. (2) and except as provided in par. (c), do all of the following:

AB476-AA3,5,6 1. Determine the difference between 20 percent of the debtor's disposable income and the amount to be garnished to satisfy an order for restitution under s. 973.20 (1r).

AB476-AA3,5,7 2. Divide the difference under subd. 1. by the number of creditors.

AB476-AA3,5,8 3. Pay each creditor the amount determined under subd. 2.

AB476-AA3,5,12 (c) If the garnishee determines that the amount to be garnished pursuant to court order under s. 973.20 (1r) is equal to or greater than 20 percent of the debtor's disposable earnings, the garnishee shall notify each creditor and court under s. 812.35 (5) within 7 business days after making that determination.”.

AB476-AA3,5,13 3. Page 5, line 11: delete lines 11 to 18 and substitute:

AB476-AA3,5,23 “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 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, Determine the amount you will pay to each creditor using the method described in the section titled “PAYING THE CREDITOR; PAYING MULTIPLE CREDITORS” and place this earnings garnishment into effect the pay period that begins at the end of the 7th business day after you receive it.”.

AB476-AA3,6,2 4. Page 6, line 10: after “CREDITOR" insert “; PAYING MULTIPLE CREDITORS".

AB476-AA3,6,6 5. Page 6, line 13: after “pay period." insert “If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor, before paying any creditor, first determine 20% of the debtor's disposable earnings for the pay period and then divide that amount equally between all creditors.".

AB476-AA3,6,7 6. Page 6, line 22: delete “and" and substitute “and".

AB476-AA3,6,10 7. Page 6, line 23: delete “garnisheed" and substitute “garnisheed, earnings garnished to satisfy an order for restitution under s. 973.20 (1r), this wage garnishment, and all other wage garnishments in effect for this debtor".

AB476-AA3,7,4 8. Page 6, line 23: after “disposable earnings." insert “If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor and 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 any creditor. Instead, send the creditor a statement of that fact by the end of the 7th business day after you receive these forms. If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor, and if less than 25% of the debtor's disposable earnings is assigned for support by court order, determine the amount each creditor must be paid by first determining the difference between 25% of the debtor's disposable earnings and the amount assigned for support by court order and then dividing the difference by the number of creditors. If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor and if less than 25% of the debtor's disposable earnings is assigned for support by court order and if this debtor's earnings are also being garnished to satisfy an order for restitution under s. 973.20 (1r), determine the amount each creditor must be paid by first determining the difference between 25% of the debtor's disposable earnings and the sum of the amount assigned for support by court order and the amount garnished to satisfy an order for restitution. Then, divide the difference by the number of creditors.”.

AB476-AA3,7,6 9. Page 6, line 24: after “EXTENSIONS" insert “ EFFECT OF A GARNISHMENT TO SATISFY AN ORDER FOR RESTITUTION".

AB476-AA3,7,7 10. Page 7, line 1: delete “9." and substitute “9.".

AB476-AA3,7,8 11. Page 7, line 3: delete “If" and substitute “If".

AB476-AA3,8,6 12. Page 7, line 7: delete “the party who paid it to you." and substitute “the party who paid it to you earnings payable to a debtor who owes restitution under a court order are being garnished to satisfy that order for restitution, those restitution payments take priority over this earnings garnishment. If 20% or more of the debtor's disposable earnings is being garnished to satisfy an order for restitution, 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 20% of the debtor's earnings is being garnished to satisfy an order for restitution, the amount the creditor must be paid is reduced so that the total of earnings garnished for restitution and garnished under this earnings garnishment and any other earnings garnishments in effect for this debtor does not exceed 20% of the debtor's disposable earnings. If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor and if 20% or more of the debtor's disposable earnings is being garnished to satisfy an order for restitution, do not pay any part of the debtor's earnings to any creditor. Instead, send the creditor a statement of that fact by the end of the 7th business day after you receive these forms. If this earnings garnishment is one of 2 or more earnings garnishments issued for this debtor, and if less than 20% of the debtor's disposable earnings is being garnished to satisfy an order for restitution, determine the amount each creditor must be paid by first determining the difference between 20% of the debtor's disposable earnings and the amount being garnished to satisfy an order for restitution and then dividing the difference by the number of creditors.".

AB476-AA3,8,7 (End)