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Bill 3232

                    Current Status

Bill Number:                      3232
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  19990112
Primary Sponsor:                  Bowers
All Sponsors:                     Bowers, Campsen, D. Smith
Drafted Document Number:          l:\council\bills\gjk\20099sd99.doc
Residing Body:                    House
Current Committee:                Judiciary Committee 25 HJ
Subject:                          Garnishment Act, Courts, Judgments, 
                                  Torts, Consumer Affairs


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   19990311  Co-Sponsor added (Rule 5.2) by Rep.            D. Smith
House   19990114  Co-Sponsor added (Rule 5.2) by Rep.            Campsen
House   19990112  Introduced, read first time,           25 HJ
                  referred to Committee
House   19990106  Prefiled, referred to Committee        25 HJ


                             Versions of This Bill

TO AMEND TITLE 15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CIVIL REMEDIES AND PROCEDURES BY ADDING CHAPTER 42 SO AS TO ENACT THE "SOUTH CAROLINA GARNISHMENT ACT", WHICH PROVIDES PROCEDURES THAT GRANT TO PERSONS WHO HAVE RECOVERED CERTAIN JUDGMENTS AGAINST ANOTHER PERSON A RIGHT TO A WRIT OF GARNISHMENT, SUBJECTING TO GARNISHMENT UP TO SPECIFIED LIMITATIONS SALARY OR WAGES OF THE DEBTOR; AND TO REPEAL SECTION 37-5-104 RELATING TO THE PROHIBITION AGAINST GARNISHMENT FOR DEBTS ARISING FROM A CONSUMER CREDIT SALE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 15 of the 1976 Code is amended by adding:

Section 15-42-10. This chapter may be cited as the 'South Carolina Garnishment Act'.

Section 15-42-20. Every person who has recovered judgment in any court against another person has a right to a writ of garnishment, as provided in this chapter, to satisfy the judgment he has obtained by subjecting to garnishment salary or wages of the judgment debtor. No other types of personal property of the debtor are subject to garnishment, and the term 'property' of the debtor or any other similar term, as used in this chapter in regard to garnishment, shall be construed in the manner provided in this section.

Section 15-42-30. (A) No writ of garnishment under this chapter may issue in any action in tort but only from actions arising under contract.

(B) If the amount of judgment is five thousand dollars or less, jurisdiction over the garnishment action must be in the magistrate's court. Otherwise jurisdiction over such garnishment actions is in the circuit court.

Section 15-42-40. After judgment has been obtained against a defendant, the judgment creditor shall serve notice of intent to apply for a writ of garnishment. Before the writ of garnishment is issued, the judgment creditor also shall file with the notice a declaration stating the amount of the judgment and that the plaintiff does not believe that the defendant has in his possession property on which a levy may be made sufficient to satisfy the judgment. The declaration may be filed and the writ issued either before or after the return of execution. The notice shall give the judgment debtor thirty days to respond, which response must be in writing and served upon the judgment creditor.

Section 15-42-50. (A) Thirty days after service of the notice, the judgment creditor may file with the appropriate court the original notice, declaration, affidavit of service, any response, and a motion for writ of garnishment together with a filing fee of twenty-five dollars.

If the judgment debtor serves an answer to the notice, the court shall set the motion for hearing and notify all parties of the hearing.

(B) If the judgment debtor fails to answer as required, the judgment creditor shall file with the appropriate court the original notice, declaration, affidavit of service, affidavit of default, and a motion for writ of garnishment. If the judgment debtor fails to answer, the court shall issue a writ of garnishment against the judgment debtor for the amount of the judgment.

(C) Upon receipt of the writ of garnishment, the judgment creditor shall forward a copy to the employer of the judgment debtor which writ shall provide for the periodic payments of a stated portion of the salary or wages of the judgment debtor as provided in Section 15-42-60.

(D) Until the judgment is satisfied or until otherwise provided by court order, the court shall allow the judgment debtor's employer to collect up to five dollars against the salary or wages of the judgment debtor to reimburse the employer for administrative costs for the first deduction from the judgment debtor's salary or wages and up to one dollar for each deduction thereafter.

The employer shall remit the funds withheld to the judgment creditor within fifteen days after withholding.

Section 15-42-60. (A) As used in this chapter:

(1) 'Disposable earnings' means that part of the earnings of an individual remaining after the deduction from those earnings of the amount required by law to be withheld.

(2) 'Earnings' means compensation paid or payable for personal service, whether denominated as wages, salary, commission, bonus, or otherwise.

(B)(1) Notwithstanding subsection (A) of this section, the maximum part of the aggregate disposable earnings of an individual for any work week which is subject to garnishment may not exceed the lesser of:

(a) twenty-five percent of his disposable earnings for that week; or

(b) the amount by which his disposable earnings for that week exceeds thirty times the federal minimum hourly wage prescribed by Federal Fair Labor Standards Act of 1938 in effect at the time the earnings are payable.

(2) In case of earnings for a period other than a week, a multiple of the federal minimum hourly wage equivalent in effect to that set forth in subitem (B)(1)(b) of this section must be used.

(C) The limitation of garnishment set forth in subsection (B) shall apply although the garnishee may receive a writ of garnishment in more than one garnishment case naming the same defendant. No garnishee shall withhold from the disposable earnings of the defendant any sum greater than the amount prescribed by subsection (B), as applicable, regardless of the number of writs.

Section 15-42-70. Within twenty days of full payment of the amount owed, the judgment creditor shall file a satisfaction of judgment with the clerk of court in each county where the judgment was filed. Failure to file shall result in a penalty of fifty dollars paid to the clerk of court.

Section 15-42-80. No employer may discharge any employee by reason of the fact that his earnings have been subjected to garnishment, even though more than one writ of garnishment may be served upon the employer with respect to the indebtedness.

Section 15-42-90. The remedy provided by this chapter is not exclusive but is in addition to any other collection procedures provided by the laws of this State in effect at the time this chapter takes effect and is optional with the judgment creditor.

Section 15-42-100. This chapter does not apply to garnishment for income tax purposes or garnishment for child support purposes, which are otherwise provided for by the laws of this State."

SECTION 2. Section 37-5-104 of the 1976 Code is repealed.

SECTION 3. This act takes effect upon approval by the Governor.

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