ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: JUD DP 10-0-0-0-0

HB 2085: writs of garnishment; attorney fees

Sponsor:  Representative Allen J, LD 15

House Engrossed

Overview

Adds accrued attorney fees, including fees for garnishment, if allowed by a judge, or contract to the application for a writ of garnishment to be paid with interest.

History

A writ of garnishment must be issued if a judgment creditor does not receive monies from the judgment debtor voluntarily. The judgment creditor may apply for a writ of garnishment containing the following information:

1)    The amount of the outstanding balance due on the judgment that includes interest;

2)    The name and address of the garnishee or garnishee's agent, judgment creditor and creditor's attorney; and

3)    The last mailing address of the judgment debtor known to the judgment creditor. (A.R.S § 12-1574).

An award of attorney fees is not chargeable to the judgment debtor unless the judgment debtor is found to have objected solely for delay or harassment. (A.R.S. § 12-1598.07)

If a timely objection to a writ of garnishment is filed, the court shall conduct a hearing and make the following determinations:

1)    Whether the writ is valid against the judgment debtor;

2)    The amount outstanding when the writ was served, plus accruing costs;

3)    Whether the judgment debtor was employed by the garnishee at the time the writ was served;

4)    Whether earnings were owed or would be owed by the garnishee to the judgment debtor within 60 days after the service of the writ; and

5)    If the debt was subject to an effective agreement for debt scheduling between the judgment debtor and a qualified debt counseling organization (A.R.S § 12-1598.10).

Provisions☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

1.    Adds accrued attorney fees, including fees for garnishment, if allowed by a judge, or contract to the application for a writ of garnishment to be paid with interest. (Sec.1)

2.    States that the award of attorney fees that are incurred due to an objection of a writ of garnishment shall not be assessed against the judgment debtor unless they are found to have been objected solely to delay or harass. (Sec. 3)

3.    Mandates that if there is no written objection to the writ of garnishment, then the attorney fees will be taxed against the judgment debtor. (Sec. 4)

4.    Ensures a writ of garnishment must be issued after the judgment creditor or a person on the judgment creditor's behalf makes a written application that contains the following information:

a)    The amount of the outstanding balance is due on the judgment on the date that the application is made, together with interest, accrued attorney fees, including fees for the garnishment, if allowed by the judgment or contract and allowable costs. (Sec. 5)

 

5.    Includes the amount of the outstanding balance due on the judgment, including accrued interest, attorney fees, and allowable costs within the writ. (Sec. 6)

6.    Prohibits attorney fees incurred due to objection from being assessed against the judgment debtor, unless it is found that the objection's sole purpose was to delay or harass the judgment creditor. (Sec. 7)

7.    Requires the court conduct a hearing and determine the amount outstanding on the judgment at the time the writ was served, plus accruing attorney fees and costs. (Sec. 8).

8.    States attorney fees accrued during a reporting period must be included in the judgment creditor's monthly report. (Sec. 9).

9.    Permits the attorney fees to be charged to the debtor if there is no written objection to the garnishee. (Sec. 10).

10.  Contains technical and conforming changes. (Sec.1, 3, 4, 5, 7, 9, 10)

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14.  Initials LC/SF                    House Engrossed

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