28 U.S.C. § 3205 : US Code - Section 3205: Garnishment

Search 28 U.S.C. § 3205 : US Code - Section 3205: Garnishment

(a) In General. - A court may issue a writ of garnishment against
property (including nonexempt disposable earnings) in which the
debtor has a substantial nonexempt interest and which is in the
possession, custody, or control of a person other than the debtor,
in order to satisfy the judgment against the debtor. Co-owned
property shall be subject to garnishment to the same extent as co-
owned property is subject to garnishment under the law of the
State in which such property is located. A court may issue
simultaneous separate writs of garnishment to several garnishees. A
writ of garnishment issued under this subsection shall be
continuing and shall terminate only as provided in subsection
(c)(10).
(b) Writ. -
(1) General requirements. - The United States shall include in
its application for a writ of garnishment -
(A) the judgment debtor's name, social security number (if
known), and last known address;
(B) the nature and amount of the debt owed and the facts that
not less than 30 days has elapsed since demand on the debtor
for payment of the debt was made and the judgment debtor has
not paid the amount due; and
(C) that the garnishee is believed to have possession of
property (including nonexempt disposable earnings) in which the
debtor has a substantial nonexempt interest.
(2) Proper garnishee for particular property. -
(A) If the property consists of a right to or share in the
stock of an association or corporation, or interests or profits
therein, for which a certificate of stock or other negotiable
instrument is not outstanding, the corporation, or the
president or treasurer of the association shall be the
garnishee.
(B) If the property consists of an interest in a partnership
interest, any partner other than the debtor shall be the
garnishee on behalf of the partnership.
(C) If the property or a debt is evidenced by a negotiable
instrument for the payment of money, a negotiable document of
title or a certificate of stock of an association or
corporation, the instrument, document, or certificate shall be
treated as property capable of delivery and the person holding
it shall be the garnishee, except that -
(i) subject to clause (ii), in the case of a security which
is transferable in the manner set forth in State law, the
entity that carries on its books an account in the name of
the debtor in which is reflected such security shall be the
garnishee; and
(ii) notwithstanding clause (i), the pledgee shall be the
garnishee if such security is pledged.
(c) Procedures Applicable to Writ. -
(1) Court determination. - If the court determines that the
requirements of this section are satisfied, the court shall issue
an appropriate writ of garnishment.
(2) Form of writ. - The writ shall state -
(A) The nature and amount of the debt, and any cost and
interest owed with respect to the debt.
(B) The name and address of the garnishee.
(C) The name and address of counsel for the United States.
(D) The last known address of the judgment debtor.
(E) That the garnishee shall answer the writ within 10 days
of service of the writ.
(F) That the garnishee shall withhold and retain any property
in which the debtor has a substantial nonexempt interest and
for which the garnishee is or may become indebted to the
judgment debtor pending further order of the court.
(3) Service of writ. - The United States shall serve the
garnishee and the judgment debtor with a copy of the writ of
garnishment and shall certify to the court that this service was
made. The writ shall be accompanied by -
(A) an instruction explaining the requirement that the
garnishee submit a written answer to the writ; and
(B) instructions to the judgment debtor for objecting to the
answer of the garnishee and for obtaining a hearing on the
objections.
(4) Answer of the garnishee. - In its written answer to the
writ of garnishment, the garnishee shall state under oath -
(A) whether the garnishee has custody, control or possession
of such property;
(B) a description of such property and the value of such
interest;
(C) a description of any previous garnishments to which such
property is subject and the extent to which any remaining
property is not exempt; and
(D) the amount of the debt the garnishee anticipates owing to
the judgment debtor in the future and whether the period for
payment will be weekly or another specified period.
The garnishee shall file the original answer with the court
issuing the writ and serve a copy on the debtor and counsel for
the United States.
(5) Objections to answer. - Within 20 days after receipt of the
answer, the judgment debtor or the United States may file a
written objection to the answer and request a hearing. The party
objecting shall state the grounds for the objection and bear the
burden of proving such grounds. A copy of the objection and
request for a hearing shall be served on the garnishee and all
other parties. The court shall hold a hearing within 10 days
after the date the request is received by the court, or as soon
thereafter as is practicable, and give notice of the hearing date
to all the parties.
(6) Garnishee's failure to answer or pay. - If a garnishee
fails to answer the writ of garnishment or to withhold property
in accordance with the writ, the United States may petition the
court for an order requiring the garnishee to appear before the
court to answer the writ and to so withhold property before the
appearance date. If the garnishee fails to appear, or appears and
fails to show good cause why the garnishee failed to comply with
the writ, the court shall enter judgment against the garnishee
for the value of the judgment debtor's nonexempt interest in such
property (including nonexempt disposable earnings). The court may
award a reasonable attorney's fee to the United States and
against the garnishee if the writ is not answered within the time
specified therein and a petition requiring the garnishee to
appear is filed as provided in this section.
(7) Disposition order. - After the garnishee files an answer
and if no hearing is requested within the required time period,
the court shall promptly enter an order directing the garnishee
as to the disposition of the judgment debtor's nonexempt interest
in such property. If a hearing is timely requested, the order
shall be entered within 5 days after the hearing, or as soon
thereafter as is practicable.
(8) Priorities. - Judicial orders and garnishments for the
support of a person shall have priority over a writ of
garnishment issued under this section. As to any other writ of
garnishment or levy, a garnishment issued under this section
shall have priority over writs which are issued later in time.
(9) Accounting. - (A) While a writ of garnishment is in effect
under this section, the United States shall give an annual
accounting on the garnishment to the judgment debtor and the
garnishee.
(B) Within 10 days after the garnishment terminates, the United
States shall give a cumulative written accounting to the judgment
debtor and garnishee of all property it receives under a writ of
garnishment. Within 10 days after such accounting is received,
the judgment debtor or garnishee may file a written objection to
the accounting and a request for hearing. The party objecting
shall state grounds for the objection. The court shall hold a
hearing on the objection within 10 days after the court receives
the request for a hearing, or as soon thereafter as is
practicable.
(10) Termination of garnishment. - A garnishment under this
chapter is terminated only by -
(A) a court order quashing the writ of garnishment;
(B) exhaustion of property in the possesion,(!1) custody, or
control of the garnishee in which the debtor has a substantial
nonexempt interest (including nonexempt disposable earnings),
unless the garnishee reinstates or reemploys the judgment
debtor within 90 days after the judgment debtor's dismissal or
resignation; or
(C) satisfaction of the debt with respect to which the writ
is issued.