§3205 Garnishment

Summary

A court can order a person or company who holds a debtor’s property to hold or turn over that property so a federal judgment can be paid. The government must ask the court and give the debtor’s name, Social Security number if known, last address, the debt amount, proof that at least 30 days passed after asking the debtor to pay, and a statement that the holder (called the garnishee) likely has property or wages of the debtor. Who can be ordered depends on the kind of property — for example, a corporation, a partner, a bank, or whoever holds a stock certificate or other money instrument. The order must tell the garnishee to answer under oath within 10 days and to withhold any nonexempt property or wages. The garnishee’s answer must describe what they have, its value, any other garnishments, and future amounts owed. The debtor or the United States has 20 days to object and ask for a hearing, which the court must set within about 10 days. If the garnishee ignores the order, the court can make them appear, enter judgment against them for the debtor’s nonexempt interest, and may award attorney fees. The court will quickly tell the garnishee how to handle the property, give yearly and final accountings, and end the hold only by court order, when the property is used up (unless the debtor is rehired within 90 days), or when the debt is paid. Certain support orders have priority over these orders.