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Business alerts, | Sep 08, 2015

Garnish at your own Risk!

Earlier this week, Judge Marvin Shoob of the United States District Court for the Northern District of Georgia issued a Ruling declaring Georgia’s post-judgment garnishment statute unconstitutional.

Prior to September 8, 2015, Georgia’s post-judgment garnishment statute (O.C.G.A. § 18-4-60 et seq.) provided judgment creditors the right to file a garnishment action against third parties to seize money or property owed to them, such as employee earnings and funds held in financial accounts. Judge Shoob found that the Statute lacks necessary due process safeguards for judgment debtors, specifically with regard to providing notice to the judgment debtor of exemptions available under Georgia law and the procedure to claim those exemptions. The Judge also found that the Statute fails to provide a timely procedure for resolving a judgment debtor’s exemption claims.
So, what does this mean? For starters, garnishment actions filed in Georgia will likely face heightened scrutiny by Georgia courts – and greater opposition from opposing parties. This Ruling…
As always, if you have any questions about the Ruling’s impact on your business, please contact us.
Sincerely,
Shareholder, Berman Fink Van Horn P.C.
Business alerts, | Sep 08, 2015