
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 28USC3205]

 
               TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
 
                     PART VI--PARTICULAR PROCEEDINGS
 
             CHAPTER 176--FEDERAL DEBT COLLECTION PROCEDURE
 
                   SUBCHAPTER C--POSTJUDGMENT REMEDIES
 
Sec. 3205. Garnishment

    (a) In General.--A court may issue a writ of garnishment against 
property (including nonexempt disposable earnings) in which the debtor 
has a substantial nonexempt interest and which is in the possession, 
custody, or control of a person other than the debtor, in order to 
satisfy the judgment against the debtor. Co-owned property shall be 
subject to garnishment to the same extent as co-owned property is 
subject to garnishment under the law of the State in which such property 
is located. A court may issue simultaneous separate writs of garnishment 
to several garnishees. A writ of garnishment issued under this 
subsection shall be continuing and shall terminate only as provided in 
subsection (c)(10).
    (b) Writ.--
        (1) General requirements.--The United States shall include in 
    its application for a writ of garnishment--
            (A) the judgment debtor's name, social security number (if 
        known), and last known address;
            (B) the nature and amount of the debt owed and the facts 
        that not less than 30 days has elapsed since demand on the 
        debtor for payment of the debt was made and the judgment debtor 
        has not paid the amount due; and
            (C) that the garnishee is believed to have possession of 
        property (including nonexempt disposable earnings) in which the 
        debtor has a substantial nonexempt interest.

        (2) Proper garnishee for particular property.--
            (A) If the property consists of a right to or share in the 
        stock of an association or corporation, or interests or profits 
        therein, for which a certificate of stock or other negotiable 
        instrument is not outstanding, the corporation, or the president 
        or treasurer of the association shall be the garnishee.
            (B) If the property consists of an interest in a partnership 
        interest, any partner other than the debtor shall be the 
        garnishee on behalf of the partnership.
            (C) If the property or a debt is evidenced by a negotiable 
        instrument for the payment of money, a negotiable document of 
        title or a certificate of stock of an association or 
        corporation, the instrument, document, or certificate shall be 
        treated as property capable of delivery and the person holding 
        it shall be the garnishee, except that--
                (i) subject to clause (ii), in the case of a security 
            which is transferable in the manner set forth in State law, 
            the entity that carries on its books an account in the name 
            of the debtor in which is reflected such security shall be 
            the garnishee; and
                (ii) notwithstanding clause (i), the pledgee shall be 
            the garnishee if such security is pledged.

    (c) Procedures Applicable to Writ.--
        (1) Court determination.--If the court determines that the 
    requirements of this section are satisfied, the court shall issue an 
    appropriate writ of garnishment.
        (2) Form of writ.--The writ shall state--
            (A) The nature and amount of the debt, and any cost and 
        interest owed with respect to the debt.
            (B) The name and address of the garnishee.
            (C) The name and address of counsel for the United States.
            (D) The last known address of the judgment debtor.
            (E) That the garnishee shall answer the writ within 10 days 
        of service of the writ.
            (F) That the garnishee shall withhold and retain any 
        property in which the debtor has a substantial nonexempt 
        interest and for which the garnishee is or may become indebted 
        to the judgment debtor pending further order of the court.

        (3) Service of writ.--The United States shall serve the 
    garnishee and the judgment debtor with a copy of the writ of 
    garnishment and shall certify to the court that this service was 
    made. The writ shall be accompanied by--
            (A) an instruction explaining the requirement that the 
        garnishee submit a written answer to the writ; and
            (B) instructions to the judgment debtor for objecting to the 
        answer of the garnishee and for obtaining a hearing on the 
        objections.

        (4) Answer of the garnishee.--In its written answer to the writ 
    of garnishment, the garnishee shall state under oath--
            (A) whether the garnishee has custody, control or possession 
        of such property;
            (B) a description of such property and the value of such 
        interest;
            (C) a description of any previous garnishments to which such 
        property is subject and the extent to which any remaining 
        property is not exempt; and
            (D) the amount of the debt the garnishee anticipates owing 
        to the judgment debtor in the future and whether the period for 
        payment will be weekly or another specified period.

    The garnishee shall file the original answer with the court issuing 
    the writ and serve a copy on the debtor and counsel for the United 
    States.
        (5) Objections to answer.--Within 20 days after receipt of the 
    answer, the judgment debtor or the United States may file a written 
    objection to the answer and request a hearing. The party objecting 
    shall state the grounds for the objection and bear the burden of 
    proving such grounds. A copy of the objection and request for a 
    hearing shall be served on the garnishee and all other parties. The 
    court shall hold a hearing within 10 days after the date the request 
    is received by the court, or as soon thereafter as is practicable, 
    and give notice of the hearing date to all the parties.
        (6) Garnishee's failure to answer or pay.--If a garnishee fails 
    to answer the writ of garnishment or to withhold property in 
    accordance with the writ, the United States may petition the court 
    for an order requiring the garnishee to appear before the court to 
    answer the writ and to so withhold property before the appearance 
    date. If the garnishee fails to appear, or appears and fails to show 
    good cause why the garnishee failed to comply with the writ, the 
    court shall enter judgment against the garnishee for the value of 
    the judgment debtor's nonexempt interest in such property (including 
    nonexempt disposable earnings). The court may award a reasonable 
    attorney's fee to the United States and against the garnishee if the 
    writ is not answered within the time specified therein and a 
    petition requiring the garnishee to appear is filed as provided in 
    this section.
        (7) Disposition order.--After the garnishee files an answer and 
    if no hearing is requested within the required time period, the 
    court shall promptly enter an order directing the garnishee as to 
    the disposition of the judgment debtor's nonexempt interest in such 
    property. If a hearing is timely requested, the order shall be 
    entered within 5 days after the hearing, or as soon thereafter as is 
    practicable.
        (8) Priorities.--Judicial orders and garnishments for the 
    support of a person shall have priority over a writ of garnishment 
    issued under this section. As to any other writ of garnishment or 
    levy, a garnishment issued under this section shall have priority 
    over writs which are issued later in time.
        (9) Accounting.--(A) While a writ of garnishment is in effect 
    under this section, the United States shall give an annual 
    accounting on the garnishment to the judgment debtor and the 
    garnishee.
        (B) Within 10 days after the garnishment terminates, the United 
    States shall give a cumulative written accounting to the judgment 
    debtor and garnishee of all property it receives under a writ of 
    garnishment. Within 10 days after such accounting is received, the 
    judgment debtor or garnishee may file a written objection to the 
    accounting and a request for hearing. The party objecting shall 
    state grounds for the objection. The court shall hold a hearing on 
    the objection within 10 days after the court receives the request 
    for a hearing, or as soon thereafter as is practicable.
        (10) Termination of garnishment.--A garnishment under this 
    chapter is terminated only by--
            (A) a court order quashing the writ of garnishment;
            (B) exhaustion of property in the possesion,\1\ custody, or 
        control of the garnishee in which the debtor has a substantial 
        nonexempt interest (including nonexempt disposable earnings), 
        unless the garnishee reinstates or reemploys the judgment debtor 
        within 90 days after the judgment debtor's dismissal or 
        resignation; or
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    \1\ So in original. Probably should be ``possession,''.
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            (C) satisfaction of the debt with respect to which the writ 
        is issued.

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104 Stat. 
4956.)

                  Section Referred to in Other Sections

    This section is referred to in sections 3002, 3104 of this title; 
title 8 section 1183a.
