§3205 Garnishment

Summary

A court can order money or other property that a person who owes the United States owns to be kept by someone else so the debt can be paid. The government must show the debtor’s name, Social Security number if known, last address, how much is owed, and that it asked for payment at least 30 days ago. The government must also say that the third party (the garnishee) likely holds the debtor’s nonexempt property or wages. If the property is stock, partnership shares, a negotiable paper, or similar items, the law names who counts as the garnishee (for example, the corporation or its officer for certain stock, a partner for partnership shares, the person who holds a negotiable instrument, the account holder for book-entry securities, or the pledgee if the security is pledged). If the court agrees, it issues a writ that tells the garnishee to answer under oath within 10 days and to hold any nonexempt property of the debtor. The government must serve copies and give instructions to both the garnishee and the debtor. The garnishee’s answer must describe what it has, its value, prior garnishments, and expected future payments. The debtor or the government has 20 days to object and ask for a hearing. The court must set a hearing within 10 days after the request and issue its order quickly (within 5 days after a hearing). If the garnishee ignores the writ, the court can make the garnishee appear, can enter judgment against the garnishee for the debtor’s nonexempt interest, and may award fees. The government must give yearly reports and a final report within 10 days after the garnishment ends. A garnishment ends only if the court quashes it, the property is exhausted (unless the debtor is rehired within 90 days after being fired or quitting), or the debt is paid in full.