2012 North Dakota Century Code Title 32 Judicial Remedies Chapter 32-09.1 Garnishment
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CHAPTER 32-09.1
GARNISHMENT
32-09.1-01. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Defendant" means every judgment debtor.
2. "Disposable earnings" means that part of the earnings of any individual remaining after
the deduction from those earnings of any amounts required by other law to be
withheld.
3. "Earnings" means compensation paid or payable for personal services, whether
denominated as wages, salary, commission, bonus, or otherwise, and includes
periodic payments pursuant to a pension or retirement program. "Earnings" does not
include social security benefits or veterans' disability pension benefits, except when
the benefits are subject to garnishment to enforce any order for the support of a
dependent child. "Earnings" includes military retirement pay.
4. "Person" includes an individual, an individual's personal representative or other
fiduciary, any two or more persons having a joint or common interest, a partnership, an
association, a corporation, a limited liability company, and any other legal or
commercial entity.
5. "Plaintiff" means every judgment creditor.
32-09.1-02. Creditors may proceed by garnishment.
Any creditor is entitled to proceed by garnishment in any court having jurisdiction of the
subject of the action against any person, any public corporation, the United States, the state of
North Dakota, or any institution, department, or agency of the state, indebted to or having any
property in possession or under control, belonging to the creditor's debtor after securing a
judgment against the debtor in a court of competent jurisdiction, in the cases, upon the
conditions, and in the manner prescribed in this chapter. A garnishment action brought pursuant
to this chapter is the exclusive procedure which may be used to execute on earnings of a debtor
while those earnings are held by a third-party employer.
32-09.1-03. Restriction on garnishment of earnings.
1. The maximum part of the aggregate disposable earnings of an individual for any
workweek which is subject to garnishment may not exceed the lesser of:
a. Twenty-five percent of disposable earnings for that week.
b. The amount by which disposable earnings for that week exceed forty times the
federal minimum hourly wage prescribed by section 6(a)(1) of the Fair Labor
Standards Act of 1938, as amended [Pub. L. 95-151; 91 Stat. 1245; 29 U.S.C.
206] or any equivalent multiple thereof prescribed by regulation by the secretary
of labor in case of earnings for any pay period other than a week, in effect at the
time the earnings are payable.
2. The maximum amount subject to garnishment under subsection 1 for any workweek
must be reduced by twenty dollars for each dependent family member residing with
the garnishment debtor. Within ten days after receipt of the garnishment summons, the
garnishment debtor shall provide to the employer a list, signed under penalty of perjury
by the garnishment debtor, of the names and social security numbers, if any, of the
dependents who reside with the garnishment debtor. If the garnishment debtor fails to
provide the list, it is presumed that the garnishment debtor claims no dependents, but
the garnishment debtor may provide the list at a later date, in which case the
exemptions claimed will be in effect for amounts subject to garnishment after the date
the list is provided.
3. The restrictions of subsection 1 do not apply in the case of:
a. Any order of any court for the support of any person.
b. Any order of any court of bankruptcy under chapter XIII of the Bankruptcy Act.
c. Any debt due for any state or federal tax.
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4.
5.
The maximum part of the aggregate disposable earnings of an individual for any
workweek which is subject to garnishment to enforce any order for the support of any
person may not exceed:
a. If such individual is supporting a spouse or dependent child other than a spouse
or child with respect to whose support such order is used, fifty percent of the
individual's disposable earnings for that week; and
b. If such individual is not supporting a spouse or dependent child other than a
spouse or child with respect to whose support such order is used, sixty percent of
the individual's disposable earnings for that week;
except that, with respect to the disposable earnings of any individual for any
workweek, the fifty percent specified in subdivision a must be deemed to be fifty-five
percent and the sixty percent specified in subdivision b must be deemed to be
sixty-five percent, if and to the extent that the earnings are subject to garnishment to
enforce a support order with respect to a period which is prior to the twelve-week
period which ends with the beginning of such workweek.
No court of this state may make, execute, or enforce any order or process in violation
of this section.
32-09.1-04. Notice before garnishment of earnings - Notice of renewal of garnishment
of earnings.
1. At least ten days before the issuance of any garnishee summons against the earnings
of any person, the creditor shall serve upon the debtor a notice that a garnishee
summons may be issued. The notice must be served personally or by first-class mail.
Failure to serve the notice renders any subsequent garnishment void. The notice must
be in substantially the following form:
To: _____________________ Date: _______________
Debtor
Please take notice that a garnishee summons that will require part of your
wages to be withheld may be served upon your employer, without any further
court proceedings or notice to you, at any time after ten days following the date of
this notice. For each dependent family member residing with you, the amount
subject to garnishment for any workweek may be reduced by twenty dollars, if
within ten days after receipt of the garnishee summons you provide to your
employer a list signed by you, under penalty of perjury, of the dependent family
members residing with you and their social security numbers, if any. If you
provide the list of dependents after the ten-day period, the exemptions you claim
will apply only to the amounts subject to garnishment after the date you provide
the list. You may wish to contact the undersigned judgment creditor or attorney to
arrange for the settlement of the debt, which is $____________________.
________________________
Judgment Creditor
Address
2. As an alternative to subsection 1, if a creditor renews an expiring continuing lien on
wages under section 32-09.1-21, at least ten days but no more than twenty days
before the expiration of the continuing lien on wages, the creditor may serve upon the
debtor a notice that a garnishee summons may be reissued for a continuing lien on
wages under section 32-09.1-21. The notice must be served personally or by
first-class mail. Failure to serve the notice renders any subsequent garnishment void.
The notice must be in substantially the following form:
To: _____________________ Date: _______________
Debtor
Please take notice that a garnishee summons that will require part of your
wages to be withheld may be served upon your employer without any further
court proceedings or notice to you. This action is a renewal of the current
garnishment order for this case. For each dependent family member residing with
you, the amount subject to garnishment for any workweek may be reduced by
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3.
twenty dollars, if within ten days after receipt of the garnishee summons you
provide to your employer a list signed by you, under penalty of perjury, of the
dependent family members residing with you and their social security numbers, if
any. If you provide the list of dependents after the ten-day period, the exemptions
you claim will apply only to the amounts subject to garnishment after the date you
provide the list. You may wish to contact the undersigned judgment creditor or
attorney to arrange for the settlement of the debt, which is $
____________________.
________________________
Judgment Creditor
Address
In addition to the notice required under subsection 1 or 2, the creditor shall serve a
garnishment debtor's list in substantially the following form under the caption of the
case:
To: Garnishee
I, under penalty of perjury, __________ (garnishment debtor) certify and affirm
that the following persons are my dependents and they reside in my household
and I claim the garnishment exemptions as provided by NDCC 32-09.1-03(2):
Name
Social Security Number
_________________
________________
_________________
________________
_________________
________________
Dated this __________ day of ____________ , _______.
_______________________
Garnishment Debtor
32-09.1-05. Service on office of management and budget - Fees.
Service upon the state of North Dakota, or any state institution, department, or agency, as
garnishee, may be made upon the director of the office of management and budget, or the
director's authorized designee, in the manner provided by law for service in garnishment
proceedings, including the fee to be tendered and paid the office of management and budget for
making and filing an affidavit of disclosure in the amount of twenty-five dollars. The fee must be
deposited in the state treasury.
32-09.1-06. Garnishee summons.
In any action in a court of record for the recovery of money, at any time after judgment, a
garnishee summons may be issued against any third person as provided in this chapter. The
plaintiff and defendant shall be designated. The person against whom the summons is issued
shall be designated garnishee.
32-09.1-07. Form of summons and notice.
1. The garnishee summons must state:
a. That the garnishee shall serve upon the plaintiff or the plaintiff's attorney within
twenty days after service of the garnishee summons:
(1) A written disclosure, under oath, of indebtedness to the defendant; and
(2) Answers, under oath, to all written interrogatories that are served with the
garnishee summons.
b. The full name of the defendant, the defendant's place of residence, the date of
the entry of judgment against the defendant, the total amount of the judgment
which remains unpaid, and the retention amount. The retention amount is the
sum of the amount of the judgment which remains unpaid, one hundred
twenty-five dollars, and an amount equal to nine months of interest on the amount
of the judgment which remains unpaid.
c. That the garnishee shall retain property, earnings, or money in the garnishee's
possession pursuant to this chapter until the plaintiff causes a writ of execution to
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be served upon the garnishee or until the defendant authorizes release to the
plaintiff.
d. That after the expiration of the period of time specified in section 32-09.1-20, the
garnishee shall release all retained property, earnings, and money to the
defendant and is discharged and relieved of all liability on the garnishee
summons.
e. That an employer may not discharge an employee because the employee's
property, earnings, or money are subject to garnishment.
f. That any assignment of wages made by the defendant or indebtedness to the
garnishee incurred within ten days before the receipt of notice of the first
garnishment on the underlying debt is void.
g. That the defendant must provide to the garnishee within ten days after receipt of
the garnishee summons a list of the dependent family members who reside with
the defendant and their social security numbers, if any, to have the maximum
amount subject to garnishment reduced under subsection 2 of section
32-09.1-03.
h. That failure of the defendant to provide a list to the garnishee within ten days after
receipt of the garnishee summons is conclusive with respect to whether the
defendant claims no family members.
2. Under subdivision a of subsection 1, the plaintiff may not require the garnishee to
disclose indebtedness or property of the defendant in the garnishee's possession or
under the garnishee's control to the extent that the indebtedness or property exceeds
the retention amount.
3. The garnishee summons and notice to defendant must be substantially in the following
form:
State of North Dakota
)
In ___________ Court
) ss.
County of __________ )
____________________
______________________________
Plaintiff
against
Garnishee Summons and
______________________________
Notice to Defendant
Defendant
and
______________________________
Garnishee
The State of North Dakota to the above-named Garnishee:
You shall serve upon the plaintiff or the plaintiff's attorney, within twenty days after
service of this summons upon you, a written disclosure, under oath, setting forth the
amount of any debt you may owe to the defendant, ____________________ (give full
name and residence of defendant) and a description of any property, money, or effects
owned by the defendant which are in your possession. Your disclosure need not exceed
$___________. (Enter retention amount.) The date of entry of the judgment against the
defendant was _________ (enter date of entry of plaintiff's judgment) and the amount of the
judgment that remains unpaid is $__________.
The defendant shall provide you with a list of the names of dependent family members
who reside with the defendant and their social security numbers if the defendant desires to
have the garnishment amount reduced under subsection 2 of section 32-09.1-03. Failure of
the defendant to provide the list to you is conclusive to establish that the defendant claims
no dependent family members reside with the defendant.
Failure to disclose and withhold may make you liable to the plaintiff for the sum of
$___________. (Enter the retention amount.)
You shall retain the defendant's nonexempt property, money, earnings, and effects in
your possession until a writ of execution is served upon you, until the defendant authorizes
release to the plaintiff, or until the expiration of 360 days from the date of service of this
summons upon you. If no writ of execution has been served upon you or no agreement has
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been made for payment within 360 days, the garnishment ends and any property or funds
held by you must be returned to the defendant if the defendant is otherwise entitled to their
possession.
Any assignment of wages by the defendant or indebtedness to you incurred by the
defendant within ten days before the receipt of the first garnishment on a debt is void and
should be disregarded.
You may not discharge the defendant because the defendant's earnings are subject to
garnishment.
Dated ________, ____.
By: ______________________________
NOTICE TO DEFENDANT
To:___________________________
The garnishee summons, garnishment disclosure form, and written interrogatories
(strike out if not applicable), that are served upon you, were also served upon
_______________________, the garnishee.
_________________________
(Attorneys for Plaintiff)
________________________
(Address)
_________________________
(Telephone)
32-09.1-08. Service.
The garnishee summons and notice to defendant shall be served upon the garnishee in the
same manner as other summons in that court of record except that service must be personal.
The plaintiff shall serve with the garnishee summons a disclosure form, substantially as set out
in this chapter. The plaintiff may also serve interrogatories with the garnishee summons. A copy
of the garnishee summons and copies of all other papers served on the garnishee must be
served personally upon the defendant in accordance with the North Dakota Rules of Civil
Procedure for personal service not later than ten days after service is made upon the garnishee.
A single garnishee summons may be addressed to two or more garnishees but must state
whether each is summoned separately or jointly.
32-09.1-09. Disclosure.
1. Within the time as limited in the garnishee summons, the garnishee shall serve upon
the plaintiff or the plaintiff's attorney written answers, under oath, to the questions in
the garnishment disclosure form and to any written interrogatories that are served
upon the garnishee. The amount of the garnishee's disclosure need not exceed the
retention amount. The written answers may be served personally or by mail. If
disclosure is by a corporation or limited liability company, it must be verified by an
officer, a manager, or an agent having knowledge of the facts.
2. Disclosure must state:
a. The amount of disposable earnings earned or to be earned within the defendant's
pay periods which may be subject to garnishment and all of the garnishee's
indebtedness to the defendant.
b. Whether the garnishee held, at the time, the title or possession of or any interest
in any personal property or any instruments or papers relating to any property
belonging to the defendant or in which the defendant is interested. If the
garnishee admits any interest or any doubt respecting the interest, the garnishee
shall set forth a description of the property and the facts concerning the property
and the title, interest, or claim of the defendant in or to the property.
c. If the garnishee claims any setoff or defense or claim or lien to disposable
earnings, indebtedness, or property, the garnishee shall disclose the amount and
the facts.
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d.
Whether the defendant claims any exemption from execution or any other
objection, known to the garnishee or the defendant, against the right of the
plaintiff to apply upon demand the debt or property disclosed.
e. If other persons make claims to any disposable earnings, debt, or property of the
defendant, the garnishee shall disclose the names and addresses of the other
claimants and, so far as known, the nature of their claims.
3. A garnishment disclosure form must be served upon the garnishee. The disclosure
must be substantially in the following form, subject to subsection 3 of section
32-09.1-03:
State of North Dakota
)
In ___________ Court
) ss.
County of __________ )
____________________
______________________________
Plaintiff
vs.
______________________________
Defendant
and
Garnishment Disclosure
______________________________
Garnishee
I am the __________________ of the garnishee and duly authorized to disclose for
the garnishee.
On ______________, ______, the time of service of garnishee summons on the
garnishee, there was due and owing the defendant from the garnishee the following:
1. Earnings. For the purposes of garnishment, "earnings" means compensation
payable for personal service whether called wages, salary, commission, bonus, or
otherwise, and includes periodic payments under a pension or retirement
program. "Earnings" does not include social security benefits or veterans'
disability pension benefits, except when the benefits are subject to garnishment
to enforce any order for the support of a dependent child. "Earnings" includes
military retirement pay. "Disposable earnings" means that part of the earnings of
an individual remaining after the deduction from those earnings of amounts
required by law to be withheld. If the garnishee summons was served upon you at
a time when earnings from a prior completed pay period were owing but not paid,
complete the following disclosure for earnings from both the past pay period and
the current pay period.
2. Money. Any amounts due and owing to defendant from the garnishee, except for
earnings. (amount and facts)
3. Property. Any personal property, instruments, or papers belonging to the
defendant and in the possession of the garnishee. (description, estimated value,
and facts)
4. Adverse interest and setoff. Any setoff, defense, lien, or claim by the garnishee or
other persons by reason of ownership or interest in the defendant's property. You
must state the name and address and the nature of that person's claim if known.
(Any assignment of wages made by the defendant or any indebtedness to a
garnishee within ten days before the receipt of the first garnishment on a debt is
void and should be disregarded.)
5. Dependent. Any family member of the defendant who is residing in the
defendant's residence. (If properly claimed after receipt of the garnishee
summons.)
6. Earnings worksheet:
a. Total earnings in pay period
________
b. Federal tax
________
c. State tax
________
d. FICA (social security/medicare)
________
e. Total deductions (lines b+c+d)
________
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f.
g.
h.
i.
j.
k.
l.
m.
n.
7.
Disposable earnings (line a less line e)
Twenty-five percent of line f
Minimum wage exemption
(minimum wage times forty hours times
number of weeks in pay period)
Line f less line h
Line g or line i (whichever is less)
Dependent exemption (twenty dollars
per dependent per week, if claimed)
Adverse interest or setoff
Total of lines k and l
Line j less line m (the amount of earnings
subject to garnishment)
________
________
________
________
________
________
________
________
________
Total of property, earnings, and money. The garnishee shall add the total of
property, earnings, and money and if this sum is ten dollars or more, the
garnishee shall retain this amount, not to exceed the retention amount identified
by the plaintiff in the garnishee summons.
Signature ___________________________
Garnishee or Authorized Representative
of Garnishee
__________________________
Title
Subscribed and sworn to before me on ______________, _____.
_____________________________________
Notary Public
32-09.1-10. Disclosure fees.
In all garnishment proceedings, the plaintiff, when the garnishee summons is served upon
the garnishee, shall tender to the garnishee the sum of twenty-five dollars as the fee for making
an affidavit of disclosure.
32-09.1-11. Effect of disclosure.
Subject to the provisions of sections 32-09.1-12 and 32-09.1-13, the disclosure is
conclusive as to all property of the defendant. If the garnishee denies having any indebtedness
to the defendant or having any property of the defendant in possession, the filing in court of a
copy of the disclosure operates as a full discharge of the garnishee at the end of twenty days
from the date of service of the disclosure, in the absence of further proceedings as provided for
in sections 32-09.1-12 and 32-09.1-13. The filing of objections to the disclosure or the filing of
any motion or other proceedings operates as a stay of the discharge. The court may, upon
proper showing, relieve the plaintiff from the operation of the discharge after the expiration of
twenty days. The garnishee may be discharged where the value of the property of the defendant
held or indebtedness owing to the defendant is less than ten dollars, and the garnishee may
apply to the court to be discharged as to any property or indebtedness in excess of the amount
which may be required to satisfy the plaintiff's judgment.
32-09.1-12. Oral disclosure - Supplemental complaint.
Either before or after written disclosure, any party to the garnishment proceedings may
obtain an ex parte order requiring oral disclosure. The order may be obtained upon affidavit
showing, upon information and belief, facts justifying the order, and the court shall require the
garnishee to appear for oral examination before the court. If the garnishee holds the garnished
property by a title that is void as to the defendant's creditors, the garnishee may be charged for
the property although the defendant could not have maintained an action against the garnishee
for it; but in this, and in all other cases in which the garnishee denies liability, the plaintiff may
move the court at any time before the garnishee is discharged, on notice to both the defendant
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and the garnishee, for leave to file a supplemental complaint making the garnishee a party to
the action, and setting forth the facts upon which the plaintiff claims to charge the garnishee. If
probable cause is shown, the motion shall be granted. The supplemental complaint must be
served upon both defendant and garnishee, either or both of whom may answer, and the plaintiff
may reply. The issues must be brought to trial and tried as in other actions.
32-09.1-13. Third party may intervene.
If it appears that any person not a party to the action has or claims an interest in any of the
garnished property antedating the garnishment, the court may permit that person to appear and
maintain that person's rights. If the person does not appear, the court may direct that the person
be notified to appear or be barred of the claim. The notice may be served in a manner as the
court directs, and the person appearing or notified shall be joined as a party and is bound by
judgment against the garnishee.
32-09.1-14. Default.
If any garnishee who is duly summoned willfully fails to serve disclosure as required in this
chapter, the court, upon proof by affidavit of the creditor, may render judgment against the
garnishee for an amount not exceeding the lesser of the plaintiff's judgment against the
defendant or the retention amount as defined under section 32-09.1-07. The creditor shall serve
the garnishee with a copy of the affidavit and a notice of intent to take default judgment. The
court upon good cause shown may remove the default and permit the garnishee to disclose on
terms as may be just.
32-09.1-15. Judgment against garnishee.
Judgment against a garnishee must be rendered, if at all, for the amount due the defendant,
or so much thereof as may be necessary to satisfy the plaintiff's judgment against the
defendant, with costs taxed and allowed in the proceeding against the garnishee but not to
exceed the retention amount defined under section 32-09.1-07. The judgment must discharge
the garnishee from all claims of all the parties named in the process to the property, earnings, or
money paid, delivered, or accounted for by the garnishee by force of the judgment. When a
person is charged as garnishee by reason of any property in possession other than an
indebtedness payable in money, that person shall deliver the property, or so much of the
property as may be necessary, to the officer holding execution, and the property must be sold
and the proceeds accounted for in the same manner as if the property had been taken on
execution against the defendant. The garnishee may not be compelled to deliver any specific
articles at any time or place other than as stipulated in the contract with the defendant.
32-09.1-16. Minimum judgment.
No judgment may be rendered against a garnishee if the judgment against the defendant is
less than twenty-five dollars, exclusive of costs, rather, the garnishee shall be discharged.
32-09.1-17. Discharge not a bar.
If any person summoned as a garnishee is discharged, the judgment is no bar to an action
brought by the defendant or other claimants against the garnishee for the same demand.
32-09.1-18. Discharge from employment for garnishment or execution prohibited.
No employer may discharge any employee by reason of the fact that earnings have been
subjected to garnishment or execution. If an employer discharges an employee in violation of
this section, the employee may within ninety days of discharge bring a civil action for recovery of
twice the wages lost as a result of the violation and for an order requiring reinstatement.
32-09.1-19. Garnishments - Minimal amount - Disclosure.
If the amount required to be retained by the garnishee is less than ten dollars, the garnishee
may not retain the sum but shall make the disclosures otherwise required, except as provided in
section 32-09.1-21.
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32-09.1-20. Termination of garnishment.
A garnishee summons lapses and the garnishee is discharged of any liability upon the
expiration of three hundred sixty days after the service of the summons, or a longer period of
time either agreed to in writing by the plaintiff and the defendant or ordered by the court.
Immediately upon the lapse of the garnishee summons, all earnings, money, property, and
effects that the garnishee has been retaining pursuant to the garnishment must be returned to
the defendant if the defendant is otherwise legally entitled to receipt of them.
32-09.1-21. Continuing lien on wages.
A plaintiff may obtain a two hundred seventy-day continuing lien on wages by garnishment.
A plaintiff obtaining a continuing lien on wages by garnishment shall mark "continuing lien" on
the caption of the garnishee summons. Each garnishment disclosure form must provide the
garnishee will continue to hold the nonexempt portion of the defendant's earnings as the
earnings accrue through the last payroll period ending on or before two hundred seventy days
from the effective date of the garnishee summons, or until the sum held equals the amount
stated in the garnishee summons, or until the employment relationship terminates, whichever
first occurs.
If the garnishee's answers to a garnishment disclosure form provide the amount withheld is
less than ten dollars, the garnishee is not required to return subsequent forms to the plaintiff
until the amount withheld is ten dollars or more. For any pay period in which the garnishee is not
required under this section to return the form to the plaintiff, the garnishee's answers from the
previous form remain in effect. At the expected termination of the lien, the plaintiff shall mail the
garnishee an additional copy of the garnishment disclosure form upon which the garnishee
within ten days shall make further disclosure.
32-09.1-22. Claim of exemptions - How made.
When the defendant claims that the indebtedness or property, or a part thereof, is exempt
from garnishment or from execution, the defendant, at or before twenty days after the service of
the garnishee summons, shall file a schedule of all personal property subscribed and sworn to
as provided in section 28-22-07.
32-09.1-23. Claim of exemptions - When heard.
In all cases when the defendant claims the debt or property garnished to be exempt, the
claim of exemptions may be heard and determined by the court at any time after the claim is
made, on three days' notice to the plaintiff.
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