AB296: Bill Text

2025 - 2026 LEGISLATURE

LRB-0946/1

KRP:cdc

2025 ASSEMBLY BILL 296

May 30, 2025 - Introduced by Representatives Tusler, Dittrich, Gundrum, Kaufert, Kitchens, Knodl, Maxey, Melotik, Murphy, O'Connor, Piwowarczyk, Steffen and Wichgers, cosponsored by Senators Hutton and Wanggaard. Referred to Committee on State Affairs.

AB296,1,5 An Act to repeal 812.40, 812.405 and 812.42 (2) (b); to renumber and amend 812.39 (2); to amend 812.33 (1), 812.35 (5), 812.35 (6), 812.38 (2), 812.39 (1), 812.44 (3) and 812.44 (4); to create 812.35 (7), 812.39 (2) (b), 812.39 (2m) and 812.395 of the statutes; relating to: eliminating the 13-week limit on the garnishment of earnings of certain debtors.

Analysis by the Legislative Reference Bureau

This bill eliminates the 13-week limit imposed on the garnishment of earnings of certain debtors. Under current law, a creditor may file a garnishment notice with a court and pay a fee to a garnishee for the purpose of collecting an unsatisfied judgment for money damages from earnings owed to the debtor by the garnishee. Current law limits the number of weeks in which the earnings of a debtor, other than a debtor who is an employee of the state or a political subdivision of the state, may be garnisheed to 13 weeks.

Under current law, a court-ordered assignment of a debtor’s earnings for support or maintenance in a family law matter takes priority over an earnings garnishment. The bill provides that a court-ordered earnings garnishment to satisfy an order for restitution in a criminal matter takes priority over other earnings garnishments but does not have priority over an assignment in a family law matter.

The bill makes various other changes, including changes to account for the increased length of time a garnishment may continue. For example, the bill requires a creditor to provide additional notices to a debtor when a garnishment extends beyond a 13-week period.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB296,1 Section 1. 812.33 (1) of the statutes is amended to read:

AB296,2,6 812.33 (1) The creditor shall pay a $15 fee to the garnishee for each earnings garnishment or each stipulated extension of that earnings garnishment, except that there is no fee for a garnishment to satisfy an order for restitution under s. 973.20 (1r). This fee shall be included as a cost in the creditor’s claim in the earnings garnishment.

AB296,2 Section 2. 812.35 (5) of the statutes is amended to read:

AB296,2,14 812.35 (5) Upon being served, the garnishee shall determine whether the garnishee may become obligated to the debtor for earnings earned within pay periods beginning within 13 weeks after the date of service. If it is unlikely that the garnishee will become so obligated, the garnishee shall send a statement of that fact to the creditor by the end of the 7th business day after receiving the earnings garnishment form under sub. (3). The creditor shall send a copy of this statement to the court within 7 business days after receipt of the statement.

AB296,3 Section 3. 812.35 (6) of the statutes is amended to read:

AB296,3,9 812.35 (6) If the garnishee may become obligated to the debtor for earnings earned within pay periods beginning within 13 weeks after the date of service, but one or more earnings garnishments against the debtor have already been served on the garnishee and not terminated, the garnishee shall retain the earnings garnishment form and place the garnishment into effect the pay period after the last of any prior earnings garnishments terminates. The garnishee shall notify the debtor of the amount of the garnishment and shall notify the creditor of the amount owed on the pending garnishments by the end of the 7th business day after receipt of the garnishment form under sub. (3). If, before the earnings garnishment takes effect, the garnishee determines that it is unlikely that the garnishee will continue to be obligated to the debtor for earnings, the garnishee shall notify the creditor and court under sub. (5) within 7 business days after making that determination.

AB296,4 Section 4. 812.35 (7) of the statutes is created to read:

AB296,3,19 812.35 (7) Upon being served, the garnishee shall determine whether the debtor's address as shown in the earnings garnishment form received under sub. (3) is consistent with the debtor’s address in the garnishee’s records, and, if it is not consistent, the garnishee shall notify the creditor in writing by the end of the 7th business day after receiving the earnings garnishment form of the current address of the debtor in the garnishee's records. If the creditor is notified of a different address of the debtor under this subsection, the creditor shall serve on the debtor at that address, by one of the means listed under sub. (3) (a) 1. to 3., copies of the information required to be served under subs. (3) (a) and (4) (b).

AB296,5 Section 5. 812.38 (2) of the statutes is amended to read:

AB296,4,8 812.38 (2) A motion or petition under sub. (1) may be made at any time during the pendency of the earnings garnishment. Within 5 business days after a motion or petition is filed under sub. (1), the court shall schedule the matter for a hearing to be held as promptly as practicable. The court shall notify the parties of the time and place of the hearing. Upon conclusion of the hearing, the court shall make findings of fact and conclusions of law. The court shall make such order as required by these findings and conclusions. If the order permits the garnishment to proceed, the date on which the order is served upon the garnishee shall substitute for the original date of service of the garnishment upon the garnishee under s. 812.35 (3) for the purpose of determining any 13-week period under s. 812.35 (5) or (6). A court order shall bind the garnishee from the time the order is served upon him or her the garnishee.

AB296,6 Section 6. 812.39 (1) of the statutes is amended to read:

AB296,4,14 812.39 (1) Between 5 and 10 business days after the payday of each pay period in which the debtor’s earnings are subject to the earnings garnishment, the garnishee shall, subject to the exemption under s. 812.34 (2) and except as provided in subs. (2) and (2m), pay the creditor that portion of the debtor’s nonexempt disposable earnings to which the creditor is entitled.

AB296,7 Section 7. 812.39 (2) of the statutes is renumbered 812.39 (2) (a) and amended to read:

AB296,5,5 812.39 (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 garnisheed 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.

AB296,8 Section 8. 812.39 (2) (b) of the statutes is created to read:

AB296,5,10 812.39 (2) (b) If an earnings garnishment is 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:

AB296,5,12 1. Determine the difference between 25 percent of the debtor’s disposable income and the sum of the following:

AB296,5,13 a. The amount assigned under s. 767.75.

AB296,5,15 b. The amount, if any, to be garnisheed to satisfy an order for restitution under s. 973.20 (1r).

AB296,5,17 2. If the difference determined under subd. 1. is less than 25 percent of the debtor’s disposable income, pay the difference under subd. 1. to the creditor.

AB296,5,20 3. If the difference determined under subd. 1. is 25 percent or more of the debtor’s disposable income, notify the creditor and the court under s. 812.35 (5) within 7 business days after making that determination.

AB296,9 Section 9. 812.39 (2m) of the statutes is created to read:

AB296,6,6 812.39 (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 garnisheed pursuant to court order under s. 973.20 (1r).

AB296,6,9 (b) If an earnings garnishment is 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:

AB296,6,12 1. Determine the difference between 20 percent of the debtor’s disposable income and the amount to be garnisheed to satisfy an order for restitution under s. 973.20 (1r).

AB296,6,13 2. Pay the creditor the amount determined under subd. 1.

AB296,6,17 (c) If the garnishee determines that the amount to be garnisheed 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 the creditor and the court under s. 812.35 (5) within 7 business days after making that determination.

AB296,10 Section 10. 812.395 of the statutes is created to read:

AB296,6,22 812.395 Garnishment of earnings remains in effect; notices to debtor. (1) A garnishment of earnings payable to a debtor, including a debtor who owes victim restitution ordered under s. 973.20 (1r), remains valid and effective until the judgment is satisfied, unless sooner terminated by order of the court.

AB296,7,6 (2) For a garnishment of earnings that extends beyond a 13-week period, following the first 13-week period the creditor shall, at least 3 business days before the payday of the first pay period of each subsequent 13-week period during the effective period of a garnishment and until the judgment is satisfied or the garnishment is terminated by order of the court, serve the earnings garnishment form issued by the clerk of courts under s. 812.35 (2) upon the debtor by one of the following means:

AB296,7,7 (a) First class mail.

AB296,7,8 (b) Certified mail, return receipt requested.

AB296,7,10 (c) Any means permissible for the service of a summons in a civil action, other than publication.

AB296,7,15 (3) No later than 180 days after an earnings garnishment proceeding is commenced, and every 180 days thereafter until the judgment is satisfied, the garnishment is terminated by order of the court, or 5 years has elapsed since the garnishment takes effect, whichever occurs first, the creditor shall send to the debtor by first class mail to the debtor’s last known address all of the following:

AB296,7,18 (a) An exemption notice that is substantially in the form of the notice under s. 812.44 (4) but that omits the information regarding the total amount of the creditor’s claim.

AB296,7,19 (b) An answer form under s. 812.44 (5).

AB296,7,20 (c) The schedules and worksheets adopted under s. 812.34 (3).

AB296,11 Section 11. 812.40 of the statutes is repealed.

AB296,12 Section 12. 812.405 of the statutes is repealed.

AB296,13 Section 13. 812.42 (2) (b) of the statutes is repealed.

AB296,14 Section 14. 812.44 (3) of the statutes is amended to read:

AB296,8,2 812.44 (3) The earnings garnishment form issued by the clerk under s. 812.35 (2) shall be in substantially the following form:

AB296,8,3 STATE OF WISCONSIN

AB296,8,4 CIRCUIT COURT: .... County