28 U.S.C. § 3105 : US Code - Section 3105: Sequestration

Search 28 U.S.C. § 3105 : US Code - Section 3105: Sequestration

(a) Property Subject to Sequestration. - (1) Any income from
property in which the debtor has a substantial nonexempt interest
may be sequestered pursuant to a writ of sequestration in an action
or proceeding against a debtor on a claim for a debt and may be
held as security to satisfy such judgment, and interest and costs,
as the United States may recover on such claim.
(2) The amount of income sequestered shall not exceed the amount
by which the sum of the amount of the debt claimed by the United
States and the amount of interest and costs reasonably likely to be
assessed against the debtor by the court exceeds the aggregate
value of the nonexempt interest of the debtor in any -
(A) property securing the debt; and
(B) property attached, garnished, or in receivership under this
subchapter.
(b) Availability of Sequestration. - If the requirements of
section 3101 are satisfied, a court shall issue a writ authorizing
the United States to sequester income from property in which the
debtor has a substantial nonexempt interest, as security for such
judgment (and interest and costs) as the United States may recover
on a claim for a debt -
(1) in an action on a contract, express or implied, against the
debtor for payment of money, only if the United States shows
reasonable cause to believe that -
(A) the contract is not fully secured by real or personal
property; or
(B) the value of the original security is substantially
diminished, without any act of the United States or the person
to whom the security was given, below the amount of the debt;
(2) in an action against the debtor for damages in tort;
(3) if the debtor resides outside the jurisdiction of the
United States; or
(4) in an action to recover a fine, penalty, or tax.
(c) Issuance of Writ; Contents. - (1) Subject to subsections (a)
and (b), a writ of sequestration shall be issued by the court
directing the United States marshal of the district where income
described in subsection (a) is located to sequester the income.
(2) Several writs of sequestration may be issued at the same
time, or in succession, and sent to different judicial districts
until sufficient income is sequestered.
(3) The writ of sequestration shall contain -
(A) the date of the issuance of the writ;
(B) the identity of the court, the docket number of the action,
and the identity of the cause of action;
(C) the name and last known address of the debtor;
(D) the amount to be secured by the sequestration; and
(E) a reasonable description of the income to be sequestered.
(d) Execution of Writ. - (1) The United States marshal receiving
the writ shall proceed without delay to execute the writ.
(2) The United States marshal shall file a copy of the notice of
sequestration in the same manner as provided for judgments in
section 3201(a)(1). The United States marshal shall serve a copy of
the writ and notice of sequestration on -
(A) the debtor against whom the writ is issued; and
(B) the person who has possession of the income subject to the
writ;
in the same manner that a summons is served in a civil action and
make the return thereof.
(e) Deposit of Sequestered Income. - A person who has possession
of the income subject to a writ of sequestration shall deposit such
income with the clerk of the court, accompanied by a statement in
writing stating the person's name, the name of the debtor, the
amount of such income, the property from which such income is
produced, and the period during which such income is produced.
(f) Return of Writ; Duties of Marshal; Further Return. - (1) A
United States marshal executing a writ of sequestration shall
return the writ with the marshal's action endorsed thereon or
attached thereto and signed by the marshal, to the court from which
it was issued, within 5 days after the date of the execution.
(2) The return shall describe the income sequestered with
sufficient certainty to identify it and shall state the location
where it was sequestered, and the date and time it was sequestered.
If no income was sequestered, the return shall so state.
(3) If sequestered income is claimed after the return, the United
States marshal shall immediately make a further return to the clerk
of the court showing the disposition of the income.
(g) Reduction or Dissolution of Sequestration. - (1) If an
excessive or unreasonable sequestration is made, the debtor may
submit a motion to the court for a reduction of the amount of the
sequestration or its dissolution. Notice of such motion shall be
served on the United States.
(2) The court shall order a part of the income to be released, if
after a hearing the court finds that the amount of the
sequestration is excessive or unreasonable or if the sequestration
is for an amount larger than the sum of the liquidated or
ascertainable amount of the debt and the amount of interest and
costs likely to be taxed.
(3) The court shall dissolve the sequestration if the amount of
the debt is unliquidated and unascertainable by calculation.
(h) Preservation of Income Under Sequester. - If personal
property in custody of the United States marshal under a writ of
sequestration is not claimed, the court may make such order for its
preservation or use as appears to be in the interest of the
parties.
(i) Judgment and Disposition of Sequestered Income. -
(1) Judgment for the united states. - On entry of judgment for
the United States, the court shall order the sequestered income
to be applied to the satisfaction of the judgment.
(2) Restoration of income. - If the sequestration is vacated or
if the judgment on the claim for the debt is for the person
against whom the writ of sequestration is issued, the court shall
order the income restored to the debtor.