SB300: Bill Text

SB300,4 Section 4. 812.35 (7) of the statutes is created to read:

SB300,3,19 812.35 (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).

SB300,5 Section 5. 812.38 (2) of the statutes is amended to read:

SB300,4,8 812.38 (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.

SB300,6 Section 6. 812.39 (1) of the statutes is amended to read:

SB300,4,14 812.39 (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.

SB300,7 Section 7. 812.39 (2) of the statutes is renumbered 812.39 (2) (a) and amended to read:

SB300,5,5 812.39 (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.

SB300,8 Section 8. 812.39 (2) (b) of the statutes is created to read:

SB300,5,10 812.39 (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:

SB300,5,12 1. Determine the difference between 25 percent of the debtor’s disposable income and the sum of the following:

SB300,5,13 a. The amount assigned under s. 767.75.

SB300,5,15 b. The amount, if any, to be garnisheed to satisfy an order for restitution under s. 973.20 (1r).

SB300,5,17 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.

SB300,5,20 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.

SB300,9 Section 9. 812.39 (2m) of the statutes is created to read:

SB300,6,6 812.39 (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).

SB300,6,9 (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:

SB300,6,12 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).

SB300,6,13 2. Pay the creditor the amount determined under subd. 1.

SB300,6,17 (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.

SB300,10 Section 10. 812.395 of the statutes is created to read:

SB300,6,22 812.395 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.

SB300,7,6 (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:

SB300,7,7 (a) First class mail.

SB300,7,8 (b) Certified mail, return receipt requested.

SB300,7,10 (c) Any means permissible for the service of a summons in a civil action, other than publication.

SB300,7,15 (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:

SB300,7,18 (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.

SB300,7,19 (b) An answer form under s. 812.44 (5).

SB300,7,20 (c) The schedules and worksheets adopted under s. 812.34 (3).

SB300,11 Section 11. 812.40 of the statutes is repealed.

SB300,12 Section 12. 812.405 of the statutes is repealed.

SB300,13 Section 13. 812.42 (2) (b) of the statutes is repealed.

SB300,14 Section 14. 812.44 (3) of the statutes is amended to read:

SB300,8,2 812.44 (3) The earnings garnishment form issued by the clerk under s. 812.35 (2) shall be in substantially the following form:

SB300,8,3 STATE OF WISCONSIN

SB300,8,4 CIRCUIT COURT: .... County

SB300,8,5

SB300,8,6 A.B., Creditor

SB300,8,7 vs. File or Reference Number ....

SB300,8,8 C.D., Debtor EARNINGS

SB300,8,9 and GARNISHMENT

SB300,8,10 E.F., Garnishee

SB300,8,11

SB300,8,12 THE STATE OF WISCONSIN, To the garnishee:

SB300,8,14 The creditor has been awarded a court judgment that has not been paid. As a result, the creditor claims that a total of $.... is owed by the debtor, as follows:

SB300,8,15 A. Unpaid balance on judgment $....

SB300,8,16 B. Unpaid postjudgment interest $....

SB300,8,17 C. Costs of this earnings garnishment

SB300,8,18 (estimated) $....

SB300,8,19 TOTAL $....

SB300,8,22 The creditor believes that you will owe the debtor for earnings within the next 13 weeks. after the date on which you receive this form. The address last known to the creditor of the debtor is as follows:

SB300,8,23 Address: ....

SB300,9,2 If that information is not consistent with your records, notify the creditor in writing of the current address of the debtor in your records by the end of the 7th business day after receiving this form.

SB300,9,4 If the $15 fee is tendered with these papers, you are directed by the court to do the following:

SB300,9,5 DETERMINE WHETHER YOU WILL

SB300,9,6 OWE THE DEBTOR EARNINGS

SB300,9,9 1. Determine if you are likely to owe the debtor for earnings in pay periods beginning within the next 13 weeks earned on or after the date on which you receive this form.

SB300,9,13 2. If you are not likely to owe the debtor for earnings in pay periods beginning within the next 13 weeks earned on or after the date on which you receive this form, send a statement stating that fact to the creditor by the end of the 7th business day after receiving the earnings garnishment forms.

SB300,9,14 IF THE DEBTOR SENDS YOU AN ANSWER

SB300,9,18 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.

SB300,9,21 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.

SB300,9,22 MULTIPLE EARNINGS GARNISHMENTS

SB300,9,23 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 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, place this earnings garnishment into effect the pay period after you receive it.

SB300,10,8 EARNINGS GARNISHMENTS

SB300,10,9 LAST 13 WEEKS, EXCEPT

SB300,10,10 FOR PUBLIC EMPLOYEES AND

SB300,10,11 EXCEPT FOR GARNISHMENTS TO

SB300,10,12 SATISFY AN ORDER FOR VICTIM

SB300,10,13 RESTITUTION REMAIN IN EFFECT

SB300,10,14 UNTIL THE JUDGMENT IS SATISFIED

SB300,11,2 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.

SB300,11,3 PAYING THE CREDITOR

SB300,11,6 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. Payment is complete upon mailing.

SB300,11,7 EFFECT OF COURT-ORDERED

SB300,11,8 ASSIGNMENTS FOR SUPPORT

SB300,11,22 8. If the debtor has assigned his or her the debtor’s earnings for support by court order, those support payments take priority over this earnings garnishment and a garnishment to satisfy an order for restitution under s. 973.20 (1r). 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 disposable 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 garnisheed to satisfy an order for restitution under s. 973.20 (1r), and this wage garnishment does not exceed 25% of the debtor’s disposable earnings. Determine the amount the creditor must be paid by subtracting from 25% of the debtor’s disposable earnings the sum of the amount assigned for support by court order and the amount garnisheed to satisfy an order for restitution, if any.

SB300,11,23 EXTENSIONS EFFECT OF A GARNISHMENT

SB300,12,1 TO SATISFY AN ORDER FOR RESTITUTION

SB300,12,20 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 garnisheed 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 garnisheed 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 disposable earnings is being garnisheed to satisfy an order for restitution, the amount the creditor must be paid is reduced so that the total of earnings garnisheed for restitution and garnisheed under this earnings garnishment does not exceed 20% of the debtor’s disposable earnings. Determine the amount the creditor must be paid by subtracting from 20% of the debtor’s disposable earnings the amount being garnisheed to satisfy an order for restitution.

SB300,15 Section 15. 812.44 (4) of the statutes is amended to read:

SB300,12,23 812.44 (4) The notice of exemption served upon the garnishee debtor under s. 812.35 (4) shall be in substantially the following form:

SB300,13,1 STATE OF WISCONSIN

SB300,13,2 CIRCUIT COURT: .... County

SB300,13,3

SB300,13,4 A.B., Creditor

SB300,13,5 vs. File or Reference Number ....

SB300,13,6 C.D., Debtor EXEMPTION NOTICE