SB327: Bill Text

SB327,,72 IF THE DEBTOR SENDS YOU AN ANSWER

SB327,,73 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.

SB327,,74 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.

SB327,,75 MULTIPLE EARNINGS GARNISHMENTS

SB327,,76 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.

SB327,,77 EARNINGS GARNISHMENTS

SB327,,78 LAST 13 WEEKS, EXCEPT

SB327,,79 FOR PUBLIC EMPLOYEES AND

SB327,,80 EXCEPT FOR GARNISHMENTS TO

SB327,,81 SATISFY AN ORDER FOR VICTIM

SB327,,82 RESTITUTION REMAIN IN EFFECT

SB327,,83 UNTIL THE JUDGMENT IS SATISFIED

SB327,,84 6. The garnishment of the earnings of employees of the state of Wisconsin and its political subdivisions, and a garnishment to satisfy an order for victim restitution under s. 973.20 (1r) for victim restitution 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.

SB327,,85 PAYING THE CREDITOR; PAYING MULTIPLE CREDITORS

SB327,,86 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. 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. Payment is complete upon mailing.

SB327,,87 EFFECT OF COURT-ORDERED

SB327,,88 ASSIGNMENTS FOR SUPPORT

SB327,,89 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, 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 does not exceed 25% of the debtor’s disposable earnings. 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.

SB327,,90 EXTENSIONS EFFECT OF A GARNISHMENT

SB327,,91 TO SATISFY AN ORDER FOR RESTITUTION

SB327,,92 9. The debtor and creditor may agree in writing to extend this earnings garnishment for additional pay periods beginning within 13 weeks after this earnings garnishment would otherwise terminate. If you receive a written extension stipulation, and an additional garnishee fee for each extension, you must honor it unless a different garnishment against this debtor’s earnings is served upon you before the extension takes effect. In that case, the extension is void and you must return the extension fee to the party who paid it to you If the 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.

SB327,17 Section 17. 812.44 (4) of the statutes is amended to read:

SB327,,94 812.44 (4) The notice of exemption served upon the garnishee under s. 812.35 (4) shall be in substantially the following form:

SB327,,95 STATE OF WISCONSIN

SB327,,96 CIRCUIT COURT: .... County

SB327,,99 A.B., Creditor

SB327,,100 vs. File or Reference Number ....

SB327,,101 C.D., Debtor EXEMPTION NOTICE

SB327,,102 and EARNINGS GARNISHMENT

SB327,,103 E.F., Garnishee

SB327,,106 To the debtor:

SB327,,107 The creditor was awarded a judgment against you or your spouse by .... (County Circuit or Federal District) Court on the .... day of ...., .... (year). That judgment not having been fully paid, the creditor has now filed a garnishment proceeding against your earnings from the garnishee. This means that the creditor is seeking to take some of your earnings to satisfy part or all of the judgment against you or your spouse.

SB327,,108 The total amount of the creditor’s claim is as follows:

SB327,,109 Unpaid balance on judgment   $....

SB327,,110 Unpaid postjudgment interest   $....

SB327,,111 Costs:

SB327,,112 a. Garnishment filing fee   $....

SB327,,113 b. Garnishee fee   $....

SB327,,114 c. Service of process (estimate)   $....

SB327,,115 TOTAL   $....

SB327,,116 By law, you are entitled to an exemption of not less than 80% of your disposable earnings. Your “disposable earnings” are those remaining after social security and federal and state income taxes are withheld.

SB327,,117 Your earnings are completely exempt from garnishment if:

SB327,,118 1. Your household income is below the federal poverty level. See the enclosed schedules and worksheet to determine if you qualify for this exemption.

SB327,,119 2. You receive aid to families with dependent children, relief funded by a relief block grant under ch. 49, relief provided by counties under section s. 59.53 (21) of the Wisconsin Statutes, medical assistance, supplemental security income, food stamps, or veterans benefits based on need under 38 USC 1501 to 1562 or section 45.351 (1) of the Wisconsin Statutes, or have received these benefits within the past 6 months.

SB327,,120 3. At least 25% of your disposable earnings are assigned by court order for support.

SB327,,121 If the garnishment of 20% of your disposable income would result in the income of your household being below the poverty line, the garnishment is limited to the amount of your household’s income in excess of the poverty line.

SB327,,122 If you qualify for a complete exemption or for a limit on the amount of the garnishment to the amount that your household’s income exceeds the poverty line, you must give or mail a copy of the enclosed debtor’s answer form to the garnishee in order to receive that increased exemption.

SB327,,123 If your circumstances change while the garnishment is in effect, you may file a new answer at any time.

SB327,,124 If you do not qualify for a complete exemption, but you will not be able to acquire the necessities of life for yourself and your dependents if your earnings are reduced by this earnings garnishment, you may ask the court in which this earnings garnishment was filed to increase your exemption or grant you other relief.

SB327,,125 IF YOU NEED ASSISTANCE

SB327,,126 CONSULT AN ATTORNEY

SB327,,127 If you have earnings that are being garnisheed garnished that are exempt or subject to a defense, the sooner you file your answer or seek relief from the court, the sooner such relief can be provided. This earnings garnishment affects your earnings in pay periods beginning within 13 weeks after it was served on the garnishee. You may agree in writing with the creditor to extend it for additional 13-week periods until the debt is paid.

SB327,,128 PENALTIES

SB327,,129 If you wrongly claim an exemption or defense in bad faith, or if the creditor wrongly objects to your claim in bad faith, the court may order the person who acted in bad faith to pay court costs, actual damages, and reasonable attorney fees.

SB327,18 Section 18. Initial applicability.

SB327,,131 (1) This act first applies to an earnings garnishment proceeding commenced on the effective date of this subsection.

SB327,,132 (end)