Garnishment Flashcards
Garnishment
Order that requires third party to turn over property that third party is holding for debtor to the creditor to satisfy judgment
Types of Garnishees
People/Entities that:
(1) Hold property that belongs to debtor
(2) Owe debtor money
(3) Have control over debtor’s interest in stock
Exemptions from Garnishment
Same exemptions for execution apply to garnishment property
Income Not Subject to Garnishment
(1) Child support
(2) Social security payments
(3) Veteran benefits
(4) Military benefits
(5) Pension benefits
Limitation on Amount that Can Be Garnished
May garnish LESSER of:
(1) 25% of disposable earnings; or
(2) Amount by which debtor’s disposable earnings for one week exceeds 30 TIMES THE FEDERAL MINIMUM WAGE
When Can Wages Be Garnished?
Only after ENTRY OF JUDGMENT against debtor
Procedure
(1) File Action
(2) Summons
(3) Garnishee Certificate
(4) Final Judgment
(5) Garnishee Delivery
Procedure: File Action
Action commences by filing AFFIDAVIT with the clerk of court that states:
(1) Garnishee has CONTROL over debtor’s property; or
(2) Garnishee OWES debtor money
Affidavit must be accompanied by bond that provides that creditor will pay presumptive garnishee any damage suffered if garnishment procedure is determined wrongful or oppressive
Procedure: Summons
Upon filing of affidavit and bond, clerk of court issues summons notifying presumptive garnishee that it must appear in court
Procedure: Garnishee Certificate
Within 5 days of service of summons presumptive garnishee must give the sheriff a written certificate that describes:
(1) Property garnishee is holding for debtor; or
(2) Amount of debt garnishee owes the debtor
Procedure: Final Judgment
Court enters final judgment against garnishee
If order is not entered, action ends and the garnishee can recover costs (per the bond)
Procedure: Garnishee Delivery
Garnishee must deliver the property to the creditor pursuant to the order
