House File 2387 - Introduced HOUSE FILE 2387 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 584) A BILL FOR An Act providing for notice of garnishment and levy to a 1 judgment debtor. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5437HV (2) 85 rh/sc

H.F. 2387 Section 1. Section 642.14, Code 2014, is amended to read as 1 follows: 2 642.14 Notice. 3 Judgment against the garnishee shall not be entered until 4 the principal defendant in the main action has had ten days’ 5 notice of the garnishment proceedings, to be served in the same 6 manner as original notices. However, if the garnishment is to 7 earnings owed the such defendant by the garnishee, judgment 8 may be entered if notice to the defendant is served with the 9 notice of garnishment to the garnishee who shall deliver the 10 notice to the defendant with the remainder of or in lieu of the 11 defendant’s earnings. The garnishee shall state in answer to 12 the service of notice of garnishment whether or not service of 13 notice was delivered to the defendant. 14 The notice required by this section shall contain the full 15 text of section 630.3A . 16 Sec. 2. NEW SECTION . 642.14A Notice of garnishment and 17 levy. 18 1. Within seven days after execution is served upon a 19 garnishee, the sheriff shall send a notice of garnishment 20 and levy to the defendant in the main action informing the 21 defendant that certain real and personal property of the 22 defendant may be exempt from execution or garnishment and that 23 a hearing process is available for the defendant to claim such 24 exemptions. 25 2. The notice required by this section shall be served by 26 personal service or restricted certified mail to the last known 27 address of the defendant and to the defendant’s attorney. The 28 judgment creditor shall provide the sheriff with the last known 29 address of the defendant and the defendant’s attorney if there 30 is an attorney of record. Proof of mailing or personal service 31 by the sheriff shall be by affidavit. 32 3. The notice required by this section shall: 33 a. Inform the defendant that judgment has been entered in 34 the main action and the defendant’s funds or other property is 35 -1- LSB 5437HV (2) 85 rh/sc 1/ 3

H.F. 2387 subject to execution under the judgment. 1 b. Inform the defendant that the defendant has the right 2 to claim funds or other property exempt from execution or 3 garnishment and a right to be timely heard on those claims. 4 c. Inform the defendant that if the defendant does not file 5 a motion or other appropriate pleading to claim funds or other 6 property exempt from execution or garnishment under state or 7 federal law, the defendant may lose any such rights and the 8 funds or other property may be applied to the judgment against 9 the defendant. 10 d. Inform the defendant that state and federal laws may 11 place limits on the amount of earnings that may be garnished 12 annually and per pay period and limits on other funds and 13 property that may be garnished or levied against. 14 e. Contain the full text of section 630.3A. 15 f. State that the defendant may wish to consult a lawyer for 16 advice as to the meaning of the notice. 17 4. An additional court filing fee shall not be assessed for 18 proceedings under this section. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill provides that notice of garnishment and levy be 23 sent to a judgment debtor. 24 The bill provides that within seven days after execution 25 is served upon a garnishee, the sheriff shall send a notice 26 of garnishment and levy to the defendant in the main action 27 (also known as the judgment debtor) informing the defendant 28 that certain real and personal property and wages of the 29 defendant may be exempt from execution or garnishment and that 30 a hearing process is available for the defendant to claim such 31 exemptions. The bill specifies that the notice be served 32 personally or by restricted certified mail to the last known 33 address of the defendant and to the defendant’s attorney. The 34 bill specifies the contents of the notice, including that the 35 -2- LSB 5437HV (2) 85 rh/sc 2/ 3

H.F. 2387 notice include the full text of Code section 630.3A, relating 1 to the hearing procedure to determine a defendant’s income. 2 -3- LSB 5437HV (2) 85 rh/sc 3/ 3