In a blog post last summer, we alerted you to a federal judge’s ruling that declared Georgia’s garnishment statute unconstitutional. For many months after, creditors, banks and others were surrounded with uncertainty. Many temporary solutions were hatched.
In the latest session of the Georgia General Assembly, efforts were made at a permanent solution that would address the flaws in the old statute identified by the federal judge. Yesterday, new legislation was agreed on between the Georgia Senate and the House, and a revised garnishment statute is on its way to Governor Deal for signature. If this version is signed, one change is a shortening of the time for banks and credit unions to seize and deposit funds with the courts.
If all goes to plan, creditors seeking to garnish funds and bank and credit unions served with garnishments will have clarity about what to do.
Chuck Van Horn resolves business disputes. A shareholder at Berman Fink Van Horn, Chuck’s areas of concentration include business and commercial litigation.