§3202 — Title 28 Judiciary and Judicial Procedure | U.S. Code

Summary

The United States can use the court methods listed in this part of the law to collect a money judgment. A court may also issue other court orders under 28 U.S.C. 1651 when needed, following Federal Rule of Civil Procedure 81(b). When the government starts such a collection action, its lawyer must prepare a written notice and the court clerk must send it to the person whose property is targeted. The notice must say the property is being taken, list the case number and amount owed, and give a plain summary of the state exemption choices under section 3014. The notice must tell the debtor they have 20 days to ask for a hearing in writing to the clerk and to send a copy to the government. If asked, the court will hold the hearing within 5 days or as soon after that as possible. At the hearing the debtor can explain why the property should be exempt or, in a default judgment case, why they do not owe the debt or why the default should be set aside. If no hearing is requested in 20 days, the property may be sold at public auction. The notice must also tell the debtor they can ask, within 20 days, to transfer the case to the federal district where they live, to keep a copy of the notice, and to seek legal help (the clerk cannot give legal advice). The government’s lawyer must serve the notice and the application on the debtor and on anyone the government, after a careful search, has good reason to believe has an interest in the property. If the debtor asks for a hearing within 20 days, they can ask the court to cancel the order. The court must hold that hearing as soon as practicable or within 5 days if requested. The hearing is limited to whether the debtor’s exemption claim likely is valid, whether legal requirements for the remedy were met, and, for default judgments only when the Constitution or federal law gives a right to a hearing, whether the debt claim likely is valid and whether there is good cause to set aside the default. The property may be sold by judicial sale under sections 2001, 2002, and 2004 or by execution sale under section 3203(g). If a timely hearing is requested, the related property cannot be sold before the hearing.

Title 28, §3202

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

(a) Enforcement Remedies.—A judgment may be enforced by any of the remedies set forth in this subchapter. A court may issue other writs pursuant to section 1651 of title 28, United States Code, as necessary to support such remedies, subject to rule 81(b) of the Federal Rules of Civil Procedure. (b) Notice.—On the commencement by the United States of an action or proceeding under this subchapter to obtain a remedy, the counsel for the United States shall prepare, and clerk of the court shall issue, a notice in substantially the following form: “Notice “You are hereby notified that this [property] is being taken by the United States Government, which has a court judgment in [case docket number and jurisdiction of court] of $[amount] for [reason of debt]. “In addition, you are hereby notified that there are exemptions under the law which may protect some of this property from being taken by the United States Government if [name of judgment debtor] can show that the exemptions apply. Below is a summary of the major exemptions which apply in most situations in the State of [State where property is located]: “[A statement summarizing in plain and understandable English the election available with respect to such State under section 3014 and the types of property that may be exempted under each of the alternatives specified in paragraphs (1) and (2) of section 3014(a) and a statement that different property may be so exempted with respect to the State in which the debtor resides.] “If you are [name of judgment debtor], you have a right to ask the court to return your property to you if you think the property the Government is taking qualifies under one of the above exemptions [For a default judgment:] or if you think you do not owe the money to the United States Government that it says you do. “If you want a hearing, you must notify the court within 20 days after you receive this notice. You must make your request in writing, and either mail it or deliver it in person to the clerk of the court at [address]. If you wish, you may use this notice to request the hearing by checking the box below and mailing this notice to the court clerk. You must also send a copy of your request to the Government at [address], so the Government will know you want a hearing. The hearing will take place within 5 days after the clerk receives your request, if you ask for it to take place that quickly, or as soon after that as possible. “At the hearing you may explain to the judge why you believe the property the Government has taken is exempt [For a default judgment:] or why you think you do not owe the money to the Government. [For a writ of execution:] If you do not request a hearing within 20 days of receiving this notice, your [property] may be sold at public auction and the payment used toward the money you owe the Government. “If you think you live outside the Federal judicial district in which the court is located, you may request, not later than 20 days after your 11 So in original. Probably should be “you”. receive this notice, that this proceeding to take your property be transferred by the court to the Federal judicial district in which you reside. You must make your request in writing, and either mail it or deliver it in person to the clerk of the court at [address]. You must also send a copy of your request to the Government at [address], so the Government will know you want the proceeding to be transferred. “Be sure to keep a copy of this notice for your own records. If you have any questions about your rights or about this procedure, you should contact a lawyer, an office of public legal assistance, or the clerk of the court. The clerk is not permitted to give legal advice, but can refer you to other sources of information.” (c) Service.—A copy of the notice and a copy of the application for granting a remedy under this subchapter shall be served by counsel for the United States on the judgment debtor against whom such remedy is sought and on each person whom the United States, after diligent inquiry, has reasonable cause to believe has an interest in property to which the remedy is directed. (d) Hearing.—By requesting, within 20 days after receiving the notice described in section 3202(b), the court to hold a hearing, the judgment debtor may move to quash the order granting such remedy. The court that issued such order shall hold a hearing on such motion as soon as practicable, or, if so requested by the judgment debtor, within 5 days after receiving the request or as soon thereafter as possible. The issues at such hearing shall be limited— (1) to the probable validity of any claim of exemption by the judgment debtor; (2) to compliance with any statutory requirement for the issuance of the postjudgment remedy granted; and (3) if the judgment is by default and only to the extent that the Constitution or another law of the United States provides a right to a hearing on the issue, to— (A) the probable validity of the claim for the debt which is merged in the judgment; and (B) the existence of good cause for setting aside such judgment. This subparagraph shall not be construed to afford the judgment debtor the right to more than one such hearing except to the extent that the Constitution or another law of the United States provides a right to more than one such hearing. (e) Sale of Property.—The property of a judgment debtor which is subject to sale to satisfy the judgment may be sold by judicial sale, pursuant to section 2001, 2002, and 2004 or by execution sale pursuant to section 3203(g). If a hearing is requested pursuant to subsection (d), property with respect to which the request relates shall not be sold before such hearing.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Rules of Civil Procedure, referred to in subsec. (a), are set out in the Appendix to this title.

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.

§3202 Enforcement of Judgments

Summary

Title 28, §3202

Notes & Related Subsidiaries

Editorial Notes

References in Text

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

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