House Study Bill 584 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON BALTIMORE) 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 5437YC (20) 85 rh/sc

H.F. _____ 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. Whenever execution is served upon a garnishee, the 19 sheriff shall send a notice of garnishment and levy to the 20 defendant in the main action informing the defendant that 21 certain real and personal property of the defendant may be 22 exempt from execution or garnishment and that a hearing process 23 is available for the defendant to claim such exemptions. 24 2. The notice required by this section shall be sent by 25 restricted certified mail to the last known address of the 26 defendant and to the defendant’s attorney. Proof of mailing 27 shall be by affidavit. 28 3. The notice required by this section shall: 29 a. Inform the defendant that judgment has been entered in 30 the garnishment proceedings and the defendant’s funds or other 31 property is subject to execution under the judgment. 32 b. Inform the defendant that the defendant has the right 33 to claim funds or other property exempt from execution or 34 garnishment and a right to be timely heard on those claims. 35 -1- LSB 5437YC (20) 85 rh/sc 1/ 2

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