28 U.S.C. § 3205 — Garnishment

(a) To satisfy a judgment, a court may issue a continuing writ of garnishment against property, including nonexempt disposable earnings, in which the debtor has a substantial nonexempt interest and which another person possesses, controls, or holds. Co-owned property is garnishable to the same extent allowed by the State where it is located. The court may issue separate writs at the same time to several garnishees. The writ ends only as subsection (c)(10) provides. (b)(1) The United States application must give the debtor’s name, known Social Security number, and last known address; the debt’s nature and amount and facts showing at least 30 days passed after demand without payment; and the belief that the garnishee holds property in which the debtor has a substantial nonexempt interest. (2) The proper garnishee is: (A) the corporation, or an association’s president or treasurer, for unrepresented stock interests; (B) a partner other than the debtor for a partnership interest; and (C) the holder of a negotiable instrument, document of title, or stock certificate. For a book-entry security transferable under State law, the entity keeping the debtor’s account is the garnishee, unless the security is pledged, in which case the pledgee is. (c)(1) If the requirements are met, the court must issue the writ. (2) It must state the debt, costs, and interest; garnishee’s name and address; United States counsel’s name and address; debtor’s last known address; that the garnishee must answer within 10 days after service; and that it must withhold and retain covered property pending further order. (3) The United States must serve the writ on garnishee and debtor and certify service. It must include answer instructions and instructions for the debtor to object and request a hearing. (4) Under oath, the garnishee must say whether it holds the property; describe it and its value; describe prior garnishments and remaining nonexempt property; and state future debt amounts and payment periods. It must file the original with the court and serve the debtor and United States counsel. (5) Within 20 days after receiving the answer, the debtor or United States may object in writing and request a hearing, stating grounds and proving them. Copies go to all parties. The court must hold the hearing within 10 days after receiving the request, or as soon as practicable, and notify all parties. (6) If the garnishee does not answer or withhold property, the United States may seek an order requiring it to appear and withhold property. If it does not appear, or cannot show good cause for noncompliance, the court must enter judgment for the value of the debtor’s nonexempt interest. The court may award the United States a reasonable attorney fee. (7) If no hearing is timely requested, the court must promptly direct disposition of the property. If one is requested, it must do so within five days after the hearing or as soon as practicable. (8) Support orders and garnishments have priority. This garnishment has priority over other writs or levies issued later. (9) During the writ, the United States must give annual accounts to the debtor and garnishee. Within 10 days after termination it must give a cumulative written account. Within 10 days after receiving it, either may object and request a hearing, stating grounds; the court must hold the hearing within 10 days after receiving the request or as soon as practicable. (10) Garnishment ends only when a court quashes the writ; the garnishee’s covered property is exhausted, unless it reinstates or reemploys the debtor within 90 days after dismissal or resignation; or the debt for which the writ issued is satisfied.