§3204 — Title 28 Judiciary and Judicial Procedure | U.S. Code

Summary

A court can order a debtor to pay a judgment in installments if someone proves the debtor is getting or will get substantial nonexempt disposable earnings from self-employment that cannot be garnished, or is hiding or diverting substantial earnings or property received instead of pay. The court can also change payment amounts, change how often payments are due, or require full payment when the United States or the debtor shows the debtor’s finances have changed or undisclosed assets were found. No installment order can be made if there is already a writ of garnishment of earnings in effect for the same debt. The order may only apply to nonexempt disposable earnings.

Title 28, §3204

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

(a)Subject to subsection (c), if it is shown that the judgment debtor—

(1)is receiving or will receive substantial nonexempt disposable earnings from self employment that are not subject to garnishment; or

(2)is diverting or concealing substantial earnings from any source, or property received in lieu of earnings;

(b)On motion of the United States or the judgment debtor, and upon a showing that the judgment debtor’s financial circumstances have changed or that assets not previously disclosed by the judgment debtor have been discovered, the court may modify the amount of payments, alter their frequency, or require full payment.

(c)(1)An order may not be issued under subsection (a), and if so issued shall have no force or effect, against a judgment debtor with respect to whom there is in effect a writ of garnishment of earnings issued under this chapter and based on the same debt.

(2)An order may not be issued under subsection (a) with respect to any earnings of the debtor except nonexempt disposable earnings.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that

Effective Date

, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.

§3204 Installment payment order

Summary

Title 28, §3204

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata