§3205 Garnishment

Summary

A court can order a person or company who holds a debtor’s property to keep or hand over that property so the United States can collect a money judgment. This can include wages that are not protected by law and other nonexempt interests. Co-owned property follows the law of the State where it is located. The court can send separate orders to more than one holder at the same time. To ask for the order, the government must give the debtor’s name, Social Security number if known, last known address, the amount and type of the debt, proof that at least 30 days passed after asking the debtor to pay, and a statement that the holder likely has the debtor’s property. For stock, partnership shares, or negotiable papers the law names who counts as the holder in simple ways (for example, a corporation or its officers for certain stock; another partner for a partnership interest; and the person holding a negotiable instrument, with some book‑entry and pledge exceptions). The holder must be served with the order and must answer under oath within 10 days. The answer must say if the holder has the property, describe it and its value, note any prior garnishments, and say what future payments might be owed to the debtor and how often. Within 20 days after that answer, the debtor or the United States may object and ask for a hearing. The court must hold the hearing within 10 days of the request when possible. If the holder ignores the order, the government can make the court force the holder to appear; the court can then enter judgment against the holder for the debtor’s nonexempt share and may award a reasonable attorney fee. If no hearing is asked for, the court will quickly order how the held property must be handled; if there is a hearing, the court will issue its order within 5 days after the hearing. Support orders have priority over these garnishments; otherwise earlier liens beat later ones. While a garnishment is in effect the government must give an annual report to the debtor and holder. Within 10 days after the garnishment ends the government must give a final accounting, and the debtor or holder has 10 days to object and ask for a hearing, which the court should hold within 10 days. A garnishment ends only if the court cancels it, if the property is used up (with a 90‑day rehiring exception in one case), or if the debt is fully paid.