House committee substitute makes the following changes to 2nd edition.
Amends proposed GS 75-16.3 as follows. Sets the filing fee for a motion requesting garnishment under this proposed statute at the same rate as the filing fee for other supplemental motions (was, set the filing fee for a motion for garnishment at $20) as set out in GS 7A-308(a)(2) (currently, $30). Directs that a copy of the order of garnishment be personally served on the judgment debtor and the garnishee using any method authorized under GS 1A-1, Rule 4(j) (was, service on the judgment debtor and the garnishee either personally or by certified or registered mail, return receipt requested).
Requires the garnishee, upon receiving a garnishment order and beginning with the judgment debtor's next pay period starting after the receipt of the notice of garnishment, to withhold the amount in the garnishment order and transmit that amount to the judgment creditor at the address specified in the order (was, directed the garnishee to transmit the amount ordered by the garnishment order to the clerk of court who was to disburse the amount to the judgment creditor). Directs the judgment creditor to deliver a written notice to the garnishee that the garnishment order is satisfied within five business days following satisfaction of the judgment.
Clarifies that a judgment creditor must not notify the clerk of superior court of each individual payment received under the garnishment order; however, does require the judgment creditor to notify the clerk within 60 days of receipt of payment in full and satisfaction of the judgment. Provides that a judgment creditor who does not file the required notice within 30 days of a written demand by the judgment debtor may be required to pay a civil penalty of $100 in addition to attorneys' fees and any loss caused to the judgment debtor by the failure to file the notice.
Summary date: May 23 2011 - More information
Summary date: Apr 14 2011 - More information
House committee substitute makes the following changes to 1st edition.
Deletes all provisions of previous edition and instead enacts new GS 75-16.3 to set forth the procedure for wage garnishment. Allows any judgment creditor, awarded a judgment that the debtor knowingly and willfully committed unfair or deceptive acts or practices, to move for a garnishment order of the judgment debtor's disposable earnings after attempting execution of an unsatisfied judgment, provided two specified conditions are met. Defines judgment creditor, judgment debtor, earnings, disposable earnings, and garnishee. Requires the motion to be in writing and describe the grounds for requesting garnishment, the amount alleged to be unpaid, and the debtor's source of earnings. Requires a notice of hearing be served on the debtor at least 10 days before the hearing that includes four detailed items. Sets a filing fee of $20, and details the hearing requirements and order of garnishment components. Sets limitations on the amount subject to garnishment. Provides that the amount garnished will be increased by a $5 processing fee, assessed and retained by the garnishee for each payment under the order. Continues the garnishment order until the underlying judgment is satisfied, the debtor ends employment by the employer or is reemployed within 90 days after, or the ten-year statute of limitation expires. Provides for the priority of garnishment orders and the application of payments received. Directs the creditor to deliver a written notice of satisfaction to the garnishee within five days of satisfaction, and notify the clerk in writing within 30 days. Sets out procedure for improper garnishment. Applies to civil actions filed on or after October 1, 2011.
Summary date: Feb 2 2011 - More information
Amends GS 1-362 to provide that a debtor's earnings for the debtor's personal services that are less than or equal to 30 times the federal minimum hourly wage per work week or 75% of the debtor's net income, whichever is greater, are not subject to attachment or garnishment (was, exempted the debtor's earnings for personal services received at any time within 60 days next preceding the order, from being applied to satisfy the judgment against the debtor when, by affidavit or otherwise, it appears that the earnings are necessary for the use of a family supported wholly or partly by the debtor's labor).
Enacts a new Article 15 to GS Chapter 1C entitled Garnishment of Wages to Enforce Judgments. Provides definitions for the terms (1) disposable earnings - compensation paid or payable for personal services after the deductions required by law are withheld and (2) nonexempt earnings - the portion of the disposable earnings owed to a judgment debtor that are not exempt under GS 1-362, as amended in this act.
Provides that final judgments awarding monetary damages may be enforced by garnishment of wages, except as provided in new GS 1C-1511 (provides that garnishment is not available to enforce deficiency judgments). Provides that there is no exception to garnishment of wages for earnings paid by a city, county, state, or local government authority.
Provides criteria for the issuance of the garnishment order, notice requirements, and service of the order. Presents guidelines for the judgment debtor's filing notice of objection to the garnishment order and for setting a hearing on the objection. Includes additional provisions pertaining to (1) payment to the judgment creditor and fee retention by the employer, (2) the duration of the garnishment order, (3) the priority of garnishment orders when there is more than a single order against a judgment debtor, (4) criteria for applying the payments received, and (5) procedures for handling improper garnishment.
Requires the judgment creditor to deliver a written notice to the employer within five days of satisfaction of the judgment and to notify the clerk of court in writing within 30 days after satisfaction of the judgment.
Makes a conforming change to GS 95-241(a).
Effective October 1, 2011, and applies to civil actions filed on or after that date.