§2405 — Title 28 Judiciary and Judicial Procedure | U.S. Code

Summary

When the United States sues a corporation to collect money it can summon people who owe that corporation to court. Those people must come into open court and give a written statement saying how much they owed the company when they were served and how much they owe when they sign the statement. The government can get a judgment for any amount the person admits, but only after a judgment is first entered against the corporation and only when the debt is actually due. If a summoned person swears they did not owe the company when served, the United States can ask for a trial on that point. If the trial finds against the person, the court will enter judgment for the United States and award costs. Anyone who does not appear when summoned may be held in contempt.

Title 28, §2405

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

In any action or suit commenced by the United States against a corporation for the recovery of money upon a bill, note, or other security, the debtors of the corporation may be summoned as garnishees. Any person so summoned shall appear in open court and depose in writing to the amount of his indebtedness to the corporation at the time of the service of the summons and at the time of making the deposition, and judgment may be entered in favor of the United States for the sum admitted by the garnishee to be due the corporation as if it had been due the United States. A judgment shall not be entered against any garnishee until after judgment has been rendered against the corporation, nor until the sum in which the garnishee is indebted is actually due. When any garnishee deposes in open court that he is not and was not at the time of the service of the summons indebted to the corporation, an issue may be tendered by the United States upon such deposition. If, upon the trial of that issue, a verdict is rendered against the garnishee, judgment shall be entered in favor of the United States, pursuant to such verdict, with costs. Any garnishee who fails to appear at the term to which he is summoned shall be subject to attachment for contempt.

Historical and Revision Notes

Based on title 28, U.S.C., 1940 ed., §§ 748, 749, and 750 (R.S. §§ 935, 936, 937). Changes were made in phraseology.

§2405 Garnishment

Summary

Title 28, §2405

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata