SB327: Bill Text

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)