Title 18 — Debtor and Creditor

Official Code of Georgia Annotated — Title 18. Debtor and Creditor

Snapshot of the Georgia code as mirrored by FindLaw, current as of 2024-03-28.

Chapter 2 Debtor and Creditor Relations

§ 18-2-1

Whenever one person, by contract or by law, is liable and bound to pay to another an amount of money, certain or uncertain, the relation of debtor and creditor exists between them.

§ 18-2-2

As among themselves, creditors shall so prosecute their own rights as not to jeopardize unnecessarily the rights of others; hence, a creditor having a lien on two funds of the debtor, equally accessible to him, will be compelled to pursue the one on which other creditors have no lien.

§ 18-2-3

Courts of equity jurisdiction shall assist creditors in reaching equitable assets in every case where to refuse interference would jeopardize the collection of their debts.

§ 18-2-20

The rights of creditors shall be favored by the courts; and every remedy and facility shall be afforded them to detect, defeat, and annul any effort to defraud them of their just rights.

§ 18-2-21

Creditors may attack as fraudulent a judgment, conveyance, or any other arrangement interfering with their rights, either at law or in equity.

§ 18-2-24

Where any property is conveyed, assigned, or mortgaged as security for any debt and permission is given to the debtor to exercise dominion over or to use the property or the proceeds thereof or any part thereof, the giving of such permission shall not cause the conveyance, assignment, or mortgage to be deemed fraudulent or to create a presumption of fraud as to creditors.

§ 18-2-25

If a debtor misrepresents or suppresses any material fact in the statement of his affairs either as to the amount of his property or of his indebtedness, the composition shall be void. If a debtor privately agrees to give a creditor better security or to pay a creditor more than other creditors, the contract with the others shall be void.

§ 18-2-40

A debtor may prefer one creditor over another; and to that end he may rightfully give a lien by mortgage or other legal means, sell in payment of the debt, or transfer choses in action as collateral security, where the surplus in such cases is not reserved for the debtor's own benefit.

§ 18-2-41

Any corporation, not municipal, may make an assignment for the benefit of creditors; but no such corporation shall be allowed in such assignment to prefer any creditor or class of creditors, except creditors who have debts entitled to priority by law.

§ 18-2-42

Persons and firms may make assignments and prefer creditors.

§ 18-2-43

In all cases the deed of assignment for the benefit of creditors shall be executed, filed, and recorded as provided for deeds in Code Section 44-2-1.

§ 18-2-44

(a) All assignments referred to in Code Section 18-2-42 shall convey all of the property of every sort which is claimed or owned by the assignor at the time of the execution thereof. Such assignments shall:

(1) Identify any lands owned or any interest in lands;

(2) Identify goods, wares, and merchandise by general words of description, indicating the location, kind, and quality thereof, with a statement as accurate as possible, containing the purchase price and selling price of the lot as a whole; and

(3) Describe in general terms any shares of capital stock, livestock, or personal property which are not connected with any mercantile or manufacturing business.

(b) The assignor shall attach a list of all creditors with their post office addresses and amounts due to each.

§ 18-2-45

Assignments referred to in Code Section 18-2-42 shall convey all books, books of account, choses in action, notes, drafts, bills, judgments, liens, and mortgages held or owned, indicating, as near as may be, the aggregate amount thereof, with a statement as to the total amounts which are considered good, doubtful, or bad.

§ 18-2-46

At the time of signing the deed of assignment provided for in Code Section 18-2-43, the person or firm making an assignment or the officer acting for the corporation making an assignment shall make an affidavit which shall be annexed to such assignment, and which affidavit shall state that:

(1) The assignment conveys all property held, claimed, or owned by the assignor at the time of making the assignment;

(2) All recitals and all estimates of totals and values therein and all list creditors are true to the best of his knowledge and belief;

(3) The debts set out as due to the preferred creditors are bona fide just, due, and unpaid; and

(4) The assignment is not made for the purpose of hindering, delaying, or defrauding creditors.

§ 18-2-47

Within 15 days after the recording of the assignment provided for in Code Section 18-2-43, the assignor shall, in connection with the assignee, prepare a full and complete list of all property of every kind, character, and description held, claimed, owned, or possessed by the assignor at the date of making such assignment, to which shall be attached the affidavit of the assignor that the list is true. The assignee shall also attach an affidavit that he has examined the books and other papers of the assignor, that he assisted in the preparation of the list as far as possible, and that to the best of his knowledge, information, and belief the list is correct. If he cannot make such affidavit, he shall state the reason therefor.

§ 18-2-48

The list referred to in Code Section 18-2-47 shall remain on file for ten days in the clerk of the court's office in the county in which the assignment was filed, subject to examination by any interested person.

§ 18-2-49

Where an unintentional mistake or omission has been made in the description of the property, in the list of assets, in the method of preparing the list of assets, or in the list of creditors, the same may be amended upon proof thereof to the court.

§ 18-2-50

Within 30 days after filing the assignment, the assignee shall notify each creditor that the same has been filed. Within 30 days after the date the assignee is served with the complaint attacking the assignment, he shall give notice of the filing of the complaint to each creditor named. Depositing a letter in the post office, stamped and properly addressed, shall be sufficient notice under this Code section.

§ 18-2-51

No property in this state shall pass under any assignment made by corporations, persons, or firms out of this state unless such foreign assignment shall conform to the law of assignments in this state.

§ 18-2-52

Upon the request of any three of the creditors of the assignor, the assignee shall make and file a bond with surety, in a sum to be fixed by the judge of the superior court, conditioned for the faithful performance of his trust, which bond shall be made payable to the judge of the probate court of the county and his successors in office, for the benefit of all creditors of the assignor. In no case shall the bond be less than the estimated value of the property assigned.

§ 18-2-53

The assignee shall proceed to carry out the duties imposed upon him by the assignment, but he shall not pay any preferred debt until after 60 days from the filing of the assignment in the clerk of the court's office in the county in which the assignment was filed.

§ 18-2-54

The assignee shall succeed to all rights of the assignor but may attack and set aside any fraudulent conveyances or recover property conveyed by the assignor for the purpose of hindering, delaying, or defrauding creditors.

§ 18-2-55

No assignment shall be set aside except in a direct action filed for that purpose; and no creditor shall obtain any priority or preference of payment out of the assets assigned on any judgment rendered after the filing of a complaint to set aside the assignment if the assignment is set aside and decreed to be void.

§ 18-2-56

In all actions to set aside assignments, the assignee and assignor shall be indispensable parties; and any preferred or unpreferred creditor may be made a party plaintiff or defendant at any time in term or vacation.

§ 18-2-57

When the assignment is attacked as fraudulent or void for any reason, it shall not be necessary to show fraud or collusion or notice thereof in the assignee in order to render the assignment void.

§ 18-2-58

No creditor shall be required to reduce his debt to judgment before asking equitable relief in any action against the assignor or assignee, or both.

§ 18-2-59

In all cases of assignments for the benefit of creditors, where the sole or surviving assignee has died or moved beyond the jurisdiction of the courts of the state, the superior courts of this state shall have full power and authority, upon the petition of two or more of the parties interested in such assignment and on such notice as the court shall direct, in a summary manner, to appoint a new assignee or assignees in the place of the deceased or nonresident assignee; and the new assignee shall have all the authority and responsibilities of the deceased or nonresident assignee; and all laws or enactments shall be as applicable and in as full force in respect to the new as to the old assignee; and the court may in its discretion require a bond and security of such assignee.

§ 18-2-70

This article, which was formerly known and cited as the “Uniform Fraudulent Transfers Act,” shall be known and may be cited as the “Uniform Voidable Transactions Act.”

§ 18-2-71

As used in this article, the term:

(1) “Affiliate” means:

(A) A person who directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

(i) As a fiduciary or agent without sole discretionary power to vote the securities; or

(ii) Solely to secure a debt, if the person has not exercised the power to vote;

(B) A corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote by the debtor or a person who directly or indirectly owns, controls, or holds with power to vote 20 percent or more of the outstanding voting securities of the debtor, other than a person who holds the securities:

(i) As a fiduciary or agent without sole power to vote the securities; or

(ii) Solely to secure a debt, if the person has not in fact exercised the power to vote;

(C) A person whose business is operated by the debtor under a lease or other agreement, or a person substantially all of whose assets are controlled by the debtor; or

(D) A person who operates the debtor's business under a lease or other agreement or controls substantially all of the debtor's assets.

(2) “Asset” means property of a debtor, but the term does not include:

(A) Property to the extent it is encumbered by a valid lien;

(B) Property to the extent it is generally exempt under nonbankruptcy law; or

(C) An interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant.

(3) “Claim,” except for claim for relief, means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

(4) “Creditor” means a person who has a claim, regardless of when the person acquired the claim, together with any successors or assigns.

(5) “Debt” means liability on a claim.

(6) “Debtor” means a person who is liable on a claim.

(7) “Electronic” means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(8) “Insider” includes:

(A) If the debtor is an individual:

(i) A relative of the debtor or of a general partner of the debtor;

(ii) A partnership in which the debtor is a general partner;

(iii) A general partner in a partnership described in division (ii) of this subparagraph; or

(iv) A corporation of which the debtor is a director, officer, or person in control;

(B) If the debtor is a corporation:

(i) A director of the debtor;

(ii) An officer of the debtor;

(iii) A person in control of the debtor;

(iv) A partnership in which the debtor is a general partner;

(v) A general partner in a partnership described in division (iv) of this subparagraph; or

(vi) A relative of a general partner, director, officer, or person in control of the debtor;

(C) If the debtor is a partnership:

(i) A general partner in the debtor;

(ii) A relative of a general partner in, or a general partner of, or a person in control of the debtor;

(iii) Another partnership in which the debtor is a general partner;

(iv) A general partner in a partnership described in division (iii) of this subparagraph; or

(v) A person in control of the debtor;

(D) An affiliate, or an insider of an affiliate as if the affiliate were the debtor; and

(E) A managing agent of the debtor.

(9) “Lien” means a charge against or an interest in property to secure payment of a debt or performance of an obligation and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien.

(10) “Organization” means a person other than an individual.

(11) “Person” means an individual, public corporation, government or governmental subdivision agency or instrumentality, business or nonprofit entity, estate, or other legal entity.

(12) “Property” means anything that may be the subject of ownership.

(13) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(14) “Relative” means an individual related by consanguinity within the third degree as determined by the common law, a spouse, or an individual related to a spouse within the third degree as so determined and includes an individual in an adoptive relationship within the third degree.

(15) “Sign” means, with present intent to authenticate or adopt a record:

(A) To execute or adopt a tangible symbol; or

(B) To attach to or logically associate with the record an electronic symbol, sound, or process.

(16) “Transfer” means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset and includes payment of money, release, lease, and creation of a lien or other encumbrance.

(17) “Valid lien” means a lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.

§ 18-2-72

(a) A debtor is insolvent if, at a fair valuation, the sum of the debtor's debts is greater than the sum of the debtor's assets.

(b) A debtor who is generally not paying his or her debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.

(c) Assets under this Code section do not include property that has been transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this article.

(d) Debts under this Code section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset.

§ 18-2-73

(a) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person.

(b) For the purposes of paragraph (2) of subsection (a) of Code Section 18-2-74 and Code Section 18-2-75, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.

(c) A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous.

§ 18-2-74

(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

(1) With actual intent to hinder, delay, or defraud any creditor of the debtor; or

(2) Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:

(A) Was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or

(B) Intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due.

(b) In determining actual intent under paragraph (1) of subsection (a) of this Code section, consideration may be given, among other factors, to whether:

(1) The transfer or obligation was to an insider;

(2) The debtor retained possession or control of the property transferred after the transfer;

(3) The transfer or obligation was disclosed or concealed;

(4) Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;

(5) The transfer was of substantially all the debtor's assets;

(6) The debtor absconded;

(7) The debtor removed or concealed assets;

(8) The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;

(9) The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

(10) The transfer occurred shortly before or shortly after a substantial debt was incurred; and

(11) The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.

(c) If a creditor is a successor or assignee, a right of action under subsection (a) of this Code section is automatically assigned to such successor or assignee.

(d) A creditor making a claim for relief under subsection (a) of this Code section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

§ 18-2-75

(a) A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.

(b) A transfer made by a debtor is voidable as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.

(c) If a creditor is a successor or assignee, a right of action under subsection (a) or (b) of this Code section is automatically assigned to such successor or assignee.

(d) Subject to subsection (b) of Code Section 18-2-72, a creditor making a claim for relief under subsection (a) or (b) of this Code section has the burden of proving the elements of the claim for relief by a preponderance of the evidence.

§ 18-2-76

For the purposes of this article:

(1) A transfer is made:

(A) With respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good faith purchaser of the asset from the debtor against whom applicable law permits the transfer to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and

(B) With respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this article that is superior to the interest of the transferee;

(2) If applicable law permits the transfer to be perfected as provided in paragraph (1) of this Code section and the transfer is not so perfected before the commencement of an action for relief under this article, the transfer is deemed made immediately before the commencement of the action;

(3) If applicable law does not permit the transfer to be perfected as provided in paragraph (1) of this Code section, the transfer is made when it becomes effective between the debtor and the transferee;

(4) A transfer is not made until the debtor has acquired rights in the asset transferred; and

(5) An obligation is incurred:

(A) If oral, when it becomes effective between the parties; or

(B) If evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee.

§ 18-2-77

(a) In an action for relief against a transfer or obligation under this article, a creditor, subject to the limitations in Code Section 18-2-78, may obtain:

(1) Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor's claim;

(2) An attachment or other provisional remedy against the asset transferred or other property of the transferee in accordance with the procedure prescribed by Chapter 3 of this title; and

(3) Subject to applicable principles of equity and in accordance with applicable rules of civil procedure:

(A) An injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property;

(B) Appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or

(C) Any other relief the circumstances may require.

(b) If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, may levy execution on the asset transferred or its proceeds.

§ 18-2-78

(a) A transfer or obligation is not voidable under paragraph (1) of subsection (a) of Code Section 18-2-74 against a person who took in good faith and for a reasonably equivalent value or against any subsequent transferee or obligee.

(b) To the extent a transfer is avoidable in an action by a creditor under paragraph (1) of subsection (a) of Code Section 18-2-77, the following rules apply:

(1) Except as otherwise provided in this Code section, the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (c) of this Code section, or the amount necessary to satisfy the creditor's claim, whichever is less. The judgment may be entered against:

(A) The first transferee of the asset or the person for whose benefit the transfer was made; or

(B) An immediate or mediate transferee of the first transferee, other than:

(i) A good faith transferee who took for value; or

(ii) An immediate or mediate good faith transferee of a person described in division (i) of this subparagraph.

(2) Recovery pursuant to paragraph (1) of subsection (a) or subsection (b) of Code Section 18-2-77 of or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in paragraph (1) of this subsection.

(c) If the judgment under subsection (b) of this Code section is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require.

(d) Notwithstanding voidability of a transfer or an obligation under this article, a good faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to:

(1) A lien on or a right to retain any interest in the asset transferred;

(2) Enforcement of any obligation incurred; or

(3) A reduction in the amount of the liability on the judgment.

(e) A transfer is not voidable under paragraph (2) of subsection (a) of Code Section 18-2-74 or Code Section 18-2-75 if the transfer results from:

(1) Termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or

(2) Enforcement of a security interest in compliance with Article 9 of the Uniform Commercial Code, other than acceptance of collateral in full or partial satisfaction of the obligation it secures.

(f) A transfer is not voidable under subsection (b) of Code Section 18-2-75:

(1) To the extent the insider gave new value to or for the benefit of the debtor after the transfer was made unless the new value was secured by a valid lien;

(2) If made in the ordinary course of business or financial affairs of the debtor and the insider; or

(3) If made pursuant to a good faith effort to rehabilitate the debtor and the transfer secured the present value given for that purpose as well as an antecedent debt of the debtor.

(g) The following rules determine the burden of proving matters referred to in this Code section:

(1) A party that seeks to invoke subsection (a), (d), (e), or (f) of this Code section has the burden of proving the applicability of that subsection;

(2) Except as otherwise provided in paragraphs (3) and (4) of this subsection, the creditor has the burden of proving each applicable element of subsection (b) or (c) of this Code section;

(3) The transferee has the burden of proving the applicability to the transferee of subparagraph (b)(1)(B) of this Code section; and

(4) A party that seeks adjustment under subsection (c) of this Code section has the burden of proving the adjustment.

(h) The standard of proof required to establish matters referred to in this Code section is preponderance of the evidence.

§ 18-2-79

A cause of action with respect to a fraudulent transfer or obligation under this article is extinguished unless action is brought:

(1) Under paragraph (1) of subsection (a) of Code Section 18-2-74, within four years after the transfer was made or the obligation was incurred or, if later, within one year after the transfer or obligation was or could reasonably have been discovered by the claimant;

(2) Under paragraph (2) of subsection (a) of Code Section 18-2-74 or subsection (a) of Code Section 18-2-75, within four years after the transfer was made or the obligation was incurred; or

(3) Under subsection (b) of Code Section 18-2-75, within one year after the transfer was made or the obligation was incurred.

§ 18-2-80

(a) In this Code section, the following rules determine a debtor's location:

(1) A debtor who is an individual is located at the individual's principal residence;

(2) A debtor that is an organization and has only one place of business is located at its place of business; and

(3) A debtor that is an organization and has more than one place of business is located at its chief executive office.

(b) A cause of action in the nature of a claim for relief under this article is governed by the law of the jurisdiction in which the debtor is located when the transfer is made or the obligation is incurred.

§ 18-2-81

(a) As used in this Code section, the term:

(1) “Protected series” means an arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics set forth in paragraph (2) of this subsection.

(2) “Series organization” means an organization that, pursuant to the law under which it is organized, has the following characteristics:

(A) The organic record of the organization provides for creation by the organization of one or more protected series, however denominated, with respect to specified property of the organization, and for records to be maintained for each protected series that identify the property of or associated with the protected series;

(B) Debt incurred or existing with respect to the activities of, or property of or associated with, a particular protected series is enforceable against the property of or associated with the protected series only, and not against the property of or associated with the organization or other protected series of the organization; or

(C) Debt incurred or existing with respect to the activities or property of the organization is enforceable against the property of the organization only, and not against the property of or associated with a protected series of the organization.

(b) A series organization and each protected series of the organization is a separate person for purposes of this article, even if for other purposes a protected series is not a person separate from the organization or other protected series of the organization.

§ 18-2-82

Unless displaced by the provisions of this article, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency, or other validating or invalidating cause, supplement its provisions.

§ 18-2-83

This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article among states enacting the “Uniform Voidable Transactions Act.”

§ 18-2-84

This article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001, et seq., but shall not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b).

§ 18-2-85

(a) As used in this Code section, the term:

(1) “Charitable organization” means an organization which has qualified as tax-exempt under Section 501(c)(3) of the federal Internal Revenue Code of 1986 and has been so qualified for not less than two years preceding any transfer pursuant to this Code section, other than a private foundation or family trust.

(2) “Private foundation” shall have the same meaning as set forth in 26 U.S.C. Section 509(a).

(b) A transfer made to a charitable organization shall be considered voidable only if it is established that a voidable transfer has occurred as described in Code Section 18-2-74 or 18-2-75, and such charitable organization had actual or constructive knowledge of the voidable nature of the transfer.

(c) The statute of limitations for a civil action with respect to a voidable transfer to a charitable organization under this Code section shall be within two years after such transfer was made.

Chapter 3 Attachment Proceedings

§ 18-3-1

Attachments may issue when the debtor:

(1) Resides out of the state;

(2) Moves or is about to move his domicile outside the limits of the county;

(3) Absconds;

(4) Conceals himself;

(5) Resists legal arrest; or

(6) Is causing his property to be removed beyond the limits of the state.

§ 18-3-2

In all cases of money demands, whether arising ex contractu or ex delicto, the plaintiff shall have the right to seek attachment when the defendant places himself in such situation as will authorize a plaintiff to seek attachment.

§ 18-3-3

When the debt is not due, the debtor shall be subject to attachment in the same manner and to the same extent as in cases where the debt is due, except that, where the debt does not become due before final judgment, execution upon the judgment shall be stayed until the debt is due.

§ 18-3-4

In all cases where the plaintiff has commenced an action for the recovery of a debt and the defendant, during the pendency of such action, shall become subject to attachment, the plaintiff may have an attachment against the defendant; and all the proceedings in relation to the same shall be as prescribed in relation to attachments where no action is pending. A satisfaction of the judgment in the common-law action shall satisfy the judgment in attachment, and a satisfaction of the judgment in attachment shall satisfy the judgment in the common-law action.

§ 18-3-5

Process of attachment may issue against an administrator of an estate or the executor of the last will and testament of any deceased person, as in other cases, when the administrator or executor actually removes or is about to remove the property of the deceased person outside the limits of any county, provided that final judgment shall not be entered against such administrator or executor until after the expiration of two years from the granting of letters of administration or letters testamentary, as the case may be.

§ 18-3-6

In cases of joint contractors and partners, where any one of them shall render himself liable to attachment according to law, an attachment may issue against him, upon the plaintiff, his agent, or his attorney at law complying with this article. The proceeding against such joint contractor or partner shall be in all respects as in other cases of attachment, except that such attachment shall be levied only upon the separate property of such joint contractor or partner.

§ 18-3-7

Attachments may issue against nonresident corporations transacting business within the state under the same rules and regulations as are prescribed in relation to issuing attachments and garnishments in other cases.

§ 18-3-8

(a) In all cases where a person is surety or endorser upon an instrument of writing and the principal shall become subject to attachment according to Code Section 18-3-1, such surety or endorser may, upon complying with this chapter, have attachment against his principal. The proceedings shall be in all respects the same as in other cases of attachment, and the money raised by the attachment shall be paid to the person holding the instrument of writing.

(b) If the surety or endorser has paid the debt, then the money raised upon the attachment or so much thereof as will pay the amount the surety or endorser has paid shall be paid to the surety or endorser.

(c) In case the debt is not due at the time judgment is rendered against the principal, execution shall be stayed until the debt is due.

§ 18-3-9

(a) When the plaintiff contends one or more of the grounds set forth in Code Section 18-3-1 exist, prior to obtaining judgment against the defendant, the plaintiff may make application to a judge of any court of record, other than the probate court, in the county of the residence of the defendant, if known, and, if not known, in the county wherein the property sought to be attached is located, for an order authorizing issuance of a writ of attachment. The application shall be made in writing, under oath, and shall set forth the specific facts that show the existence of one or more of such grounds, the basis and nature of the claim, and the amount of indebtedness claimed therein by the plaintiff.

(b) Upon presentation of plaintiff's sworn application for a writ of attachment, it shall be the duty of the judge to inquire into the facts alleged, going beyond mere conclusions of fact alleged by the plaintiff and clearly setting forth the facts entitling the creditor to a writ of attachment as set forth in Code Section 18-3-1. Upon consideration of the inquiry, the judge shall have the discretion to grant or deny the issuance of a writ of attachment. Any order by a judge granting the issuance of a writ of attachment shall be subject to approval of a bond by the clerk of the court, pursuant to Code Section 18-3-10, prior to filing of the writ of attachment.

§ 18-3-10

No writ of attachment shall issue unless accompanied by a bond with good security, conditioned to pay the defendant all costs and damages that he may sustain in consequence of the issuance of the writ of attachment in the event that the amount claimed to be due was not due, that no lawful ground for issuance of the attachment existed, or that the property sought to be attached was not subject to attachment. The bond shall be in a sum equal to twice the amount claimed due in the plaintiff's application. The bond shall be presented to the clerk of the court where the application provided for in Code Section 18-3-9 is sought to be filed for approval by such clerk prior to filing of the writ of attachment.

§ 18-3-10.1

When a person who has been a defendant in attachment desires to bring an action against the plaintiff for damages, and the plaintiff in attachment does not reside in this state, it shall be sufficient to serve the complaint and summons on the security to the bond given by the plaintiff, and the action may proceed against both principal and security.

§ 18-3-11

When the debt, for the recovery of which the attachment is sought, is due to a partnership or is due to several persons jointly, any one of the partners or joint creditors, his agent, or his attorney at law may make the affidavit and give the bond as prescribed and sign the names of the other partners or joint creditors to said bond; and the partners or joint creditors shall be bound thereby in the same manner as though they had signed it themselves.

§ 18-3-12

No person shall be taken as security or surety on any attachment bond who is an attorney for the plaintiff or a nonresident, except such nonresident who is possessed of real estate in the county where the attachment issues which is the value of the amount of such bond.

§ 18-3-13

When any attachment shall be issued and levied upon the property of the defendant, the defendant, his agent, or his attorney may file an affidavit stating that he has a good defense to the action, that the bond given in the action is not a good bond, and stating the ground of its insufficiency. When the affidavit is made and delivered to the levying officer, the officer shall return such attachment together with the affidavit forthwith to the judge issuing the attachment. The judge issuing the attachment shall without delay hear testimony as to the sufficiency of the bond and may in his discretion require additional security or a new bond to be given within such time as he may prescribe. If the plaintiff fails to provide such additional security or new bond, the judge shall dismiss the levy made under the attachment.

§ 18-3-14

(a) The defendant shall be given notice of the attachment issued against his property by any one or more of the following methods:

(1) The plaintiff, at the time the attachment is filed with the clerk, shall commence procedures to effectuate the service of a copy of the writ of attachment on the defendant; and service thereafter shall be made on the defendant as soon as is reasonably practicable. Service pursuant to this paragraph shall be made pursuant to Code Section 9-11-4;

(2) The plaintiff, after issuance of the writ of attachment and not more than three business days after levy upon the property of the defendant, shall cause a written notice to be sent to the defendant at defendant's last known address by registered or certified mail or statutory overnight delivery, return receipt requested. Either the return receipt indicating receipt by the defendant or the envelope bearing the official notification from the United States Postal Service of the defendant's refusal to accept delivery or failure to claim such registered or certified mail or statutory overnight delivery shall be filed with the clerk of the court in which the attachment is pending. The defendant's refusal to accept or failure to claim such registered or certified mail or statutory overnight delivery addressed to defendant shall be deemed notice to defendant;

(3) The plaintiff, after the issuance of the writ of attachment and not more than three business days after levy upon the property of the defendant, shall cause a written notice to be delivered personally to the defendant by the plaintiff or by plaintiff's attorney at law or other agent. A certification by the person making the delivery shall be filed with the clerk;

(4) When the defendant resides out of the state or has departed the state or cannot, after due diligence, be found within the state or conceals his place of residence from the plaintiff and the fact shall appear, by affidavit, to the satisfaction of the judge or clerk of the court, the levy and attachment shall constitute sufficient notice to the defendant, provided such levy and attachment without more shall constitute sufficient notice, unless the plaintiff has actual knowledge of the defendant's address, in which case, to provide sufficient notice, the plaintiff shall also mail a written notice of attachment to the defendant at said address or, not having actual knowledge of the defendant's address but the address at which the defendant was last known to reside, to provide sufficient notice, the plaintiff shall also mail a written notice of attachment to the defendant at said address. A mailing of the written notice provided in this paragraph shall be made after the issuance of the writ of attachment and not more than three business days after levy upon the property of the defendant, and a certificate of such mailing shall be filed with the clerk by the person mailing the notice;

(5) Where it shall appear by affidavit that a defendant in the attachment action is not a resident of this state or has departed from this state or, after due diligence, cannot be found in this state or that the defendant conceals his place of residence from the plaintiff, notice may be given by causing two publications of the written notice in the paper in which advertisements are printed by the sheriff in each county in which a writ of attachment is served. Such publications must be at least six days apart and the second publication must be made not more than 21 days after levy upon the property of the defendant. A certification by the person causing the notice to be published shall be filed with the clerk, provided such publication shall constitute sufficient notice alone, unless the plaintiff has actual knowledge of the defendant's address, in which case, to provide sufficient notice, the plaintiff shall also mail a written notice of attachment to the defendant at said address. A mailing of the written notice provided in this paragraph shall be made after the issuance of the writ of attachment and not more than three business days after levy upon the property of the defendant, and a certificate of such mailing shall be filed with the clerk by the person mailing the notice; or

(6) Where the defendant's address is known, the plaintiff, after issuance of the attachment and not more than three business days after levy upon the property of the defendant, shall send a written notice of the attachment to the defendant at such known address by ordinary mail. A certification by the person mailing the notice shall be filed with the clerk.

(b) The receiving by the defendant of actual timely notice of the attachment and levy shall constitute notice.

(c) “Written notice,” as referred to in paragraphs (2) through (6) of subsection (a) of this Code section, shall consist of a copy of the affidavit and bond for attachment or of a document which includes the names of the plaintiff and the defendant, the amount claimed in the affidavit for attachment, and the court wherein the proceeding is filed.

(d) The methods of notification specified in subsection (a) of this Code section are cumulative and may be used in any sequence or combination. Where it appears that a plaintiff has reasonably, diligently, and in good faith attempted to use one method, another method thereafter may be utilized and, for the time during which the attempt was being made, the time limit shall be tolled for the subsequent method.

§ 18-3-15

When a writ of attachment is issued against the property of the defendant, the defendant may at any time traverse the plaintiff's affidavit upon which the attachment was obtained, stating that the affidavit is untrue or legally insufficient. Upon filing of the traverse, the court shall issue a show cause order to the plaintiff requiring him to appear at a specified time, which shall not be more than ten days from the filing of the traverse, to prove the grounds for the issuance of the attachment. If the plaintiff shall fail to carry the burden of proof, the order authorizing the attachment shall be revoked.

§ 18-3-16

Attachments may issue and be levied on Sunday when the plaintiff, his agent, or his attorney at law shall state, in his sworn application for a writ of attachment, that he has reason to believe the debt will not be satisfied unless process of attachment shall issue on Sunday and shall also comply with the other provisions of this chapter.

§ 18-3-17

(a) Attachments shall be returnable to the court of record in which filed pursuant to subsection (a) of Code Section 18-3-9 and shall be governed by the rules of procedure and practice governing ordinary civil actions, as respects appearance day, trial term, and judgment pursuant to default, and by any and all other rules relating to procedure and practice.

(b) The plaintiff shall file his declaration in attachment within 15 days after the levy of attachment and the declaration shall thereafter be governed by the rules governing ordinary civil actions as provided for in subsection (a) of this Code section. Notice of the declaration shall be given pursuant to Code Section 18-3-14.

§ 18-3-18

All pleadings, defenses, and procedures subsequent to the filing of the declaration in attachment shall be governed by Chapter 10 of Title 9.

§ 18-3-19

In all cases of attachment, the form of the affidavit, bond, attachment, and order authorizing the issuance thereof may be as follows:

(1) Affidavit for attachment .

AFFIDAVIT

Personally appeared _____ who on oath says that he is attorney at law for _____ and that _____ is indebted to said plaintiff in the sum of $_____ and that said defendant _____.

(2) Bond.

BOND

We, _____, principal, and , security, jointly and severally acknowledge ourselves bound unto the foregoing defendant in the sum of $, subject to the following conditions:

The said principal is seeking attachment against the said defendant which is now about to be sued out in the _____ Court of _____ County.

Now, if the said plaintiff shall pay all damages that the defendant may sustain, and also all costs that may be incurred by him in consequence of suing out such attachment, in the event that the said plaintiff shall fail to recover in said case, then this bond shall be void.

(3) Attachment.

ATTACHMENT

To the marshal of said court or his lawful deputies, to all and singular the sheriffs or their lawful deputies, and to all lawful constables of said state:

You are commanded to seize so much of the property of the foregoing defendant as will make the sum of $_____ and all costs, and to serve such summons of garnishment as may be placed in your hands, and that you make return of this attachment with your actions entered thereon to the _____ term, _____, of the _____ Court of _____ County, to which court this attachment is hereby made returnable.

This _____ day of _____, _____.

(4) Order.

ORDER

Upon application of the plaintiff for a writ of attachment, and having considered the affidavit with bond attached, and inquiring into the grounds and circumstances herein, it is the determination of this court that the plaintiff is (or is not) entitled to a writ of attachment, and it is

ORDERED that a writ of attachment issue upon the property of the defendant (or that a writ of attachment be denied).

This _____ day of _____, _____.

§ 18-3-20

A substantial compliance in all matters of form shall be held sufficient in all applications for attachment and in all attachments issued as provided by this chapter.

§ 18-3-30

It shall be the duty of any one of the officers to whom an attachment is directed to levy the attachment upon real or personal property of the defendant which is necessary to satisfy the claim of the plaintiff and which may be found in the county of which he is an officer. It shall be the duty of any one of the officers to whom an attachment is directed, where the defendant has removed his property beyond the limits of the county in which the attachment is issued and returnable, to follow the property into any county of the state, levy the attachment upon such property of the defendant which is necessary to satisfy the claim of the plaintiff, and return the property to the county in which the attachment is returnable.

§ 18-3-31

In all cases it shall be the duty of the officer levying attachments to levy them in the order in which they come into his hands, and it shall be his duty to enter upon the same the year, month, day, and hour on which he made the levy. Where the levy is upon land, the attachment must be entered on the execution or attachment docket by the clerk of the superior court in order to be good against third persons acting in good faith and without actual notice.

§ 18-3-32

When the plaintiff in attachment wishes to levy his attachment upon property in a different county from that in which the same is returnable, it shall be the duty of the judge issuing the attachment, upon the request of the plaintiff, his agent, or his attorney at law, to make out a copy or copies of the original attachment, bond, and affidavit and certify the same officially to be true copies. Upon delivery of the copies of the attachment, bond, and affidavit, as directed, to any officer of the county in which the property of the defendant is located, it shall be the duty of the officer forthwith to levy the attachment upon the property of the defendant located in that county and to return the attachment, with his actings and doings entered thereon, to the court to which the original attachment is returnable.

§ 18-3-33

(a) When an attachment has been levied upon the property of a defendant, it shall be the duty of the officer levying the attachment to deliver the property levied upon to the defendant upon his giving bond, with good security, payable to the plaintiff in attachment, obligating himself to pay the plaintiff the amount of the judgment and costs that he may recover in the case.

(b) Where the value of the property levied upon, as appraised by the levying officer, is equal to or exceeds the claim of the plaintiff, the bond shall be fixed in an amount equal to the amount claimed to be due. Where the value of the property levied upon, as appraised by the levying officer, is less than the claim of the plaintiff, the bond shall be fixed in an amount equal to twice the value of the property levied upon.

(c) The officer taking the bond shall return the bond with the attachment to the court to which the attachment is returnable, and the plaintiff shall be entitled to entry of judgment against the defendant and his sureties upon the bond for the amount of the judgment and costs entered against the defendant in the case.

§ 18-3-34

When an attachment is levied on the property of a foreign corporation, any agent of the corporation may recover the property levied upon by giving a bond, with good security, conditioned to pay the amount of judgment and costs that the plaintiff in attachment may recover in the case. The officer taking the bond shall return the bond with the attachment to the court to which the attachment is made returnable; and the plaintiff shall be entitled to entry of judgment against the corporation and its sureties upon the bond for the amount of the judgment and costs entered against the corporation in the case.

§ 18-3-50

(a) When property is levied on by virtue of an attachment and the same is claimed by any person not a party to the attachment, it shall be the duty of the person claiming the same, his agent, or his attorney at law to make an oath before some person authorized by law to administer an oath that the property levied on is the property of the claimant and is not subject to the attachment according to the best of his knowledge and belief.

(b) The claimant shall give bond, with good security, payable to the plaintiff in attachment in a sum not larger than double the amount of the attachment levied and, where the property attached is of less value than the attachment, in the judgment of the levying officer, then in double the value of the property conditioned to pay the plaintiff all damages which the jury, on the trial of the right of property, may assess against him in case it should be made to appear that the claim was made for the purpose of delay; and, in case the claim is interposed by the agent or attorney at law of the claimant, the agent or attorney at law shall have power to sign the name of the claimant to the bond, and the claimant shall be bound in the same manner as though he had signed it himself. It shall be the duty of the levying officer taking the affidavit and bond to return the same to the court to which the attachment is returnable, unless the property levied on should be real estate, in which case it shall be his duty to return the same to the superior court of the county where the land lies, provided that, if the claimant is unable to give such bond and security, he may interpose his claim as provided in Code Section 9-15-2.

§ 18-3-51

The claimant, his agent, or his attorney at law may give bond, with good security, payable to the levying officer, in a sum equal to double the value of the property claimed, the value to be judged by the levying officer, conditioned to deliver the property at the time and place of sale, provided the same should be found subject to the attachment; and, upon the delivery of the bond to the levying officer, it shall be his duty to deliver such property to the claimant, his agent, or his attorney at law; and it shall be the duty of the levying officer to return the bond, together with the affidavit and claim bond, to the court to which the attachment is returnable; and, when the claim is interposed by the agent or attorney at law of the claimant, the agent or attorney at law shall have power to sign the name of the claimant to the bond, who shall be bound thereby in the same manner as though he had signed it himself.

§ 18-3-52

The third-party claim shall be tried in the same manner and subject to the same rules and regulations as are prescribed by law for the trial of other claims in the court to which it is returned.

§ 18-3-53

Upon the failure of the claimant to deliver the property according to the conditions of the bond, the levying officer may immediately sue the claimant and security upon the bond and recover the full value of the property claimed and also all damages, costs, and charges that the plaintiff may have sustained in consequence of the failure of the claimant to deliver the property.

§ 18-3-54

(a) In cases where the claimant shall deliver the property and upon selling the same a sufficient amount shall not be raised to pay the debt and costs of the plaintiff, the plaintiff may institute an action against the claimant and his securities upon his bond and recover the full value of the hire or use of the property while the same has been in the possession of the claimant and also full damages for any deterioration of the value of the property, by use or otherwise, while the same has been in the possession of the claimant, provided such recovery shall not exceed the amount of the debt that may remain due from the defendant in attachment to the plaintiff.

(b) The remedy provided in this Code section is and shall be extended to all other claims in the cases herein provided for.

§ 18-3-55

In cases of attachment, the claim may be interposed either before or after judgment.

§ 18-3-70

When the defendant has given bond and security, or when he has appeared and made defense by himself or attorney at law without raising a valid defense of lack of jurisdiction over the person, the judgment rendered against him in such case shall bind all his property and shall have the same force and effect as when there has been personal service, and execution shall issue accordingly, but it shall be first levied upon the property attached. In all other cases, the judgment on the attachment shall only bind the property attached and the judgment shall be entered only against such property.

§ 18-3-71

A judgment in attachment may be set aside in a court of law upon an issue suggesting fraud or want of consideration, tendered by a judgment creditor of the defendant in attachment.

§ 18-3-72

After the judgment has been obtained in any case of attachment, execution shall issue as in cases at common law, which execution shall be levied in the same manner as executions issuing at common law; and the proceedings in all respects shall be the same, except that when the judgment only binds the property levied on by the attachment, as aforesaid, the execution shall be issued against such property only and that property only shall be levied on and sold.

§ 18-3-73

All money raised by the sale of defendant's property or otherwise, by virtue of this chapter, shall be paid over to the creditors of the defendant, according to the priority of the lien of their judgments, except that as between attaching creditors the attachment first levied shall be first satisfied to the entire exclusion of any attachment of younger levy.

§ 18-3-74

The lien of an attachment is created by the levy and not the judgment in the attachment; and in case of a conflict between attachments, the first levied shall be first satisfied; but in a contest between attachments and ordinary judgments or suits, it is the judgment and not the levy which fixes the lien. However, the lien of an attachment shall have priority over the lien of an ordinary judgment that has been obtained upon a suit filed after the levy of the attachment.

§ 18-3-75

As against the interests of third parties acting in good faith and without notice who may have acquired a transfer or lien binding any real estate, no attachment levied upon real estate shall be a lien on the same from the levy thereof unless said attachment is entered upon the attachment docket of the county in which the real estate is situated within five days from said levy. When the attachment is entered upon the docket after the five days, the lien shall date from such entry; and it shall be the duty of the sheriff to have said entry made within the five days. Nothing in this Code section shall be construed to affect the validity or force of any attachment as between the parties thereto.

Chapter 4 Garnishment Proceedings

§ 18-4-1

As used in this chapter, the term:

(1) “Disposable earnings” means that part of the earnings of an individual remaining after the deduction for federal income tax, state income tax, withholdings for the Federal Insurance Contributions Act (FICA), and other mandatory deductions required by law.

(2) “Earnings” means compensation paid or payable for personal services, whether denominated as wages, salary, commission, fee, bonus, tips, overtime, or severance pay, including recurring periodic payments from pensions or retirement plans, including, but not limited to, the United States Department of Veterans Affairs, Railroad Retirement Board, Keoghs, and individual retirement accounts.

(3) “Entity” means a public corporation or a corporation, limited liability company, partnership, limited partnership, professional corporation, firm, or other business organization other than a natural person.

(4) “Financial institution” means every federal or state chartered commercial or savings bank, including savings and loan associations and cooperative banks, federal or state chartered credit unions, benefit associations, insurance companies, safe-deposit companies, trust companies, any money market mutual fund, or other organization held out to the public as a place of deposit of funds or medium of savings or collective investment.

(5) “Garnishee answer” or “garnishee's answer” means the response filed by a garnishee responding to a summons of garnishment detailing the money or other property of the defendant that is in the possession of the garnishee or declaring that the garnishee holds no such money or other property of the defendant.

(6) “Public corporation” means any department, agency, branch of government, or political subdivision, as such term is defined in Code Section 50-15-1, or any public board, bureau, commission, or authority created by the General Assembly.

(7) “Statutory overnight delivery” shall have the same meaning as defined in Code Section 9-10-12.

§ 18-4-2

(a) The procedure in garnishment cases shall be uniform in all courts throughout this state that have jurisdiction to preside over garnishment proceedings.

(b) In all cases when a money judgment was obtained in a court of this state or a federal court or is being enforced in this state as provided in Article 5 of Chapter 12 of Title 9, the “Uniform Foreign-Country Money Judgments Recognition Act,” or Article 6 of Chapter 12 of Title 9, the “Uniform Enforcement of Foreign Judgments Law,” the plaintiff shall be entitled to the process of garnishment.

(c) Except as otherwise provided in this chapter, Chapter 11 of Title 9 shall apply in garnishment proceedings in the state courts and superior courts of this state.

(d) Any affidavit, garnishee answer, or pleading required or permitted by this chapter shall be amendable at any time before judgment is entered or before money or other property subject to garnishment is distributed by the court; however, no person or entity not named as garnishee in the original affidavit of garnishment filed in an action may be added as a garnishee by any amendment in such action absent a showing that any such amendment is done to correct or clarify the identity of an originally named garnishee.

§ 18-4-3

(a) The plaintiff, the plaintiff's attorney, or the plaintiff's agent shall make, on personal knowledge or belief, an affidavit setting forth that the plaintiff has a judgment against a named defendant, the amount remaining due on the judgment, the name of the court which rendered the judgment, and the case number thereof.

(b) Upon the filing of the affidavit described in subsection (a) of this Code section with the clerk of any court having jurisdiction to preside over garnishment proceedings, such clerk shall cause a summons of garnishment to issue, provided that the plaintiff's affidavit is made before any officer authorized to administer oaths, a notary public, such clerk, or the deputy clerk of the court in which the garnishment is filed.

(c) An affidavit of garnishment may be electronically submitted to the clerk or deputy clerk of the court if the court has promulgated rules authorizing such submission.

(d) The form for an affidavit of garnishment is set forth in Code Section 18-4-71.

(e) The amount remaining due on a judgment may include, at the election of the plaintiff, any and all unrecovered filing and service fees paid to a court of this state, or to any sheriff, marshal, constable, or other such person authorized by law to serve process, for previous garnishment actions based on such judgment.

§ 18-4-4

(a) All obligations owed by the garnishee to the defendant at the time of service of the summons of garnishment upon the garnishee and all obligations accruing from the garnishee to the defendant throughout the garnishment period shall be subject to the process of garnishment. No payment made by the garnishee to the defendant or on his or her behalf, or by any arrangement between the defendant and the garnishee, after the date of service of the summons of garnishment upon the garnishee shall defeat the lien of such garnishment.

(b) All money or other property of the defendant in the possession or control of the garnishee at the time of service of the summons of garnishment upon the garnishee or coming into the possession or control of the garnishee throughout the garnishment period shall be subject to the process of garnishment, provided that, in the case of collateral securities in the hands of a creditor, such securities shall not be subject to garnishment so long as there is an amount owed, even if not then due, on the debt for which the securities were given as collateral.

(c) The garnishment period shall begin on the day of service of the summons of garnishment and, for:

(1) A continuing garnishment, shall include the next 1,095 days;

(2) Garnishments, other than a continuing garnishment or continuing garnishment for support, served on a financial institution, shall include the next five days;

(3) A continuing garnishment for support, shall remain for so long as the defendant is employed by the garnishee and shall not terminate until the original arrearage is retired; and

(4) All other garnishments, shall include the next 29 days.

§ 18-4-5

(a)(1) For purposes of this subsection, a “private student loan” shall be defined as an educational or student loan for postsecondary educational expenses but not a loan guaranteed under 20 U.S.C. Section 1070, et seq.

(2) Subject to the limitations set forth in Code Sections 18-4-6 and 18-4-53, the maximum part of disposable earnings for any work week which is subject to garnishment shall not exceed the lesser of:

(A) Twenty-five percent of the defendant's disposable earnings for that week or, if the judgment upon which the garnishment is based arose from a private student loan, then 15 percent of the defendant's disposable earnings for that week; or

(B) The amount by which the defendant's disposable earnings for that week exceed $217.50.

(3) In case of earnings for a period other than a week, the proportionate fraction or multiple of 30 hours per week at $7.25 per hour shall be used.

(4) A garnishee in a garnishment action in which the defendant is not an employee of such garnishee subject to federal and state income tax withholding by said garnishee shall be considered to have no knowledge of, nor any obligation to determine, the disposable earnings for such defendant and may, without liability to any party or nonparty, answer the summons without regard for any potential exemptions based on disposable earnings until such garnishee is served with, or consents to, a court order or a filed modification form as described in subsection (d) of this Code section in the pending garnishment action containing an alternative and enabling basis for determining the amount subject to garnishment.

(5) A garnishee shall only be deemed to have knowledge that the judgment upon which a garnishment is based arose from a private student loan, and shall only be responsible to adjust any calculation of the amount subject to garnishment accordingly, if the summons of garnishment served by the plaintiff on such garnishee states such information conspicuously on its face or upon service on such garnishee of a court order in the pending garnishment action stating such information.

(b) The limitation on garnishment set forth in subsection (a) of this Code section shall apply although the garnishee may receive a summons of garnishment in more than one garnishment case naming the same defendant unless the garnishee has received a summons of continuing garnishment for support as provided in Article 3 of this chapter.

(c) No employer shall discharge an employee by reason of the fact that such employee's earnings have been subjected to garnishment for any one obligation, even though more than one summons of garnishment may be served upon such employer with respect to the obligation.

(d) The amount to be paid by the garnishee in a continuing garnishment may be voluntarily modified to a lesser amount if the plaintiff and the defendant execute the form provided in Code Section 18-4-90. The form shall be effective only upon:

(1) Filing the fully executed and attested form or a copy thereof in the garnishment court; and

(2) Serving the filed form upon the garnishee as provided in Code Section 9-11-4, or, when the garnishment is filed in a magistrate court, by serving the garnishee by using the constable of the magistrate court in the manner set forth in Code Section 9-11-4, or obtaining a written acknowledgment of receipt of service of the form by the garnishee, which may be by, but is not limited to, electronic mail, if the responding representative of the garnishee confirms authority to make such acknowledgment or is an officer or attorney of the garnishee.

§ 18-4-6

(a)(1) Certain earnings or property of the defendant may be exempt from the process of garnishment.

(2) Funds or benefits from an individual retirement account or from a pension or retirement program shall be exempt from the process of garnishment until paid or otherwise distributed to a member of such program or beneficiary thereof. Such funds or benefits, when paid or otherwise distributed to such member or beneficiary, shall be exempt from the process of garnishment only to the extent of the limitations provided in Code Section 18-4-5 for other disposable earnings, unless a greater exemption is otherwise provided by law.

(3) Funds in an unfunded plan maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees shall not be exempt from the process of garnishment.

(4) Exempt property shall not be considered disposable earnings for purposes of Code Section 18-4-5 or subsection (b) of Code Section 18-4-53.

(b) Not later than May 22, 2016, the Attorney General shall create and maintain on the Department of Law's website a list of exemptions that a defendant may be allowed by law to claim in relation to a garnishment of his or her earnings or property. The Attorney General shall revise such list when exemptions are repealed, revised, or created by law. The Attorney General shall transmit a copy of such list to each clerk of court in this state who issues summonses of garnishment and transmit a revised list when a change is made to such list.

(c) Each clerk of court in this state who issues summonses of garnishment shall post and update such list of exemptions as promulgated by the Attorney General and shall provide such list to individuals upon request.

(d) A defendant may claim an exemption as provided in Code Section 18-4-15.

(e) The fact that an exemption is not identified by the Attorney General shall not preclude a defendant from claiming an exemption.

§ 18-4-7

(a) The amount shown on the summons of garnishment shall not exceed the amount the defendant owes the plaintiff pursuant to a judgment.

(b)(1) A summons of garnishment, or an attachment thereto, shall state on its face with particularity all of the following information, to the extent reasonably available to the plaintiff:

(A) The name of the defendant and, to the extent such would reasonably enable the garnishee to properly respond to the summons of garnishment, all known configurations, nicknames, aliases, former or maiden names, trade names, or variations thereof;

(B) The service address and the current address of the defendant and, to the extent such would reasonably enable the garnishee to properly respond to the summons of garnishment and such is reasonably available to the plaintiff, the past addresses of the defendant; and

(C) The social security number or federal tax identification number of the defendant; provided, however, that if such summons is filed with a court, the court filing shall be redacted in accordance with Code Section 9-11-7.1 or 15-10-54, as applicable. The defendant's full social security number or federal tax identification number shall be made known to the garnishee and defendant in accordance with Code Section 9-11-7.1 or 15-10-54, as applicable, to the extent such information is reasonably available to the plaintiff.

(2) The form for a summons of garnishment on a financial institution shall not be used for a continuing garnishment or continuing garnishment for support. A summons of garnishment on a financial institution, or an attachment thereto, shall also state with particularity the defendant's account, identification, or tracking numbers known to the plaintiff used by the garnishee in the identification or administration of the defendant's funds or property; provided, however, that if such summons is filed with a court, the court filing shall be redacted in accordance with Code Section 9-11-7.1 or 15-10-54, as applicable. The defendant's account, identification, or tracking numbers shall be made known to the garnishee and defendant in accordance with Code Section 9-11-7.1 or 15-10-54, as applicable, to the extent such information is known to the plaintiff.

(3) A misspelling of any information required by this subsection, other than the surname of a natural person defendant, shall not invalidate a summons of garnishment, so long as such information is not misleading in a search of the garnishee's records.

(c) The form for a summons of garnishment is set forth in Code Section 18-4-74, and the optional attachment thereto is set forth in Code Section 18-4-75. The form for a summons of garnishment on a financial institution is set forth in Code Section 18-4-76, and the attachment thereto is set forth in Code Section 18-4-77. The form for a summons of garnishment on a financial institution shall not be used for a continuing garnishment or continuing garnishment for support.

(d) When a plaintiff uses the incorrect form for a summons of garnishment of any type, the garnishment shall not be valid and the garnishee shall be relieved of all liability.

§ 18-4-8

(a) The plaintiff shall serve the garnishee, as provided in Code Section 9-11-4, or, when the garnishment is filed in a magistrate court, the plaintiff may serve the garnishee by using the constable of the magistrate court in the manner set forth in Code Section 9-11-4, with a copy of the affidavit of garnishment, summons of garnishment, Notice to Defendant of Right Against Garnishment of Money, Including Wages, and Other Property, and Defendant's Claim Form. The plaintiff shall fill in the style of the case, except for the civil action file number, and the garnishment court information on such notice and claim form. Such notice and claim form are set forth in Code Section 18-4-82.

(b)(1) At any time after filing of an affidavit of garnishment but not more than three business days after service of the summons of garnishment on the garnishee, the plaintiff shall cause a copy of the affidavit of garnishment, a copy of the summons of garnishment, a copy of the Notice to Defendant of Right Against Garnishment of Money, Including Wages, and Other Property, and a copy of the Defendant's Claim Form as described in subsection (a) of this Code section, using one of the following methods:

(A)(i) To be sent to the defendant at the defendant's last known address by:

(I) Regular mail; and

(II) Registered or certified mail or statutory overnight delivery.

(ii) A certificate of service or any other proof of the sending of the above documents to the defendant, which may include but is not limited to copies of the envelope bearing the official notification from the United States Postal Service of the attempted or actual delivery of such registered or certified mail, the envelope bearing the official notification from a commercial firm of the attempted or actual delivery of such statutory overnight delivery, or a written notice from the United States Postal Service or a commercial firm, including but not limited to printings or reproductions from the website of the United States Postal Service or such commercial firm, of the attempted or actual delivery of such registered or certified mail or statutory overnight delivery, shall be filed with the clerk of the court in which the garnishment is pending.

(iii) The defendant's actual timely notice of the garnishment or the defendant's refusal to accept or failure to claim such registered or certified mail or statutory overnight delivery addressed to such defendant shall satisfy all other requirements for service of notice in this Code section;

(B)(i) To be delivered personally to the defendant by:

(I) An individual who is not a party and is not younger than 18 years of age;

(II) An individual who has been appointed by the court to serve process or is a permanent process server;

(III) The sheriff of the county where the action is brought or where the defendant is found or by such sheriff's deputy;

(IV) The marshal or sheriff of the court or by such official's deputy;

(V) The constable of the magistrate court, when the garnishment is filed in a magistrate court, or by the constable's deputy; or

(VI) A certified process server as provided in Code Section 9-11-4.1.

(ii) A certification by the person making the delivery shall be filed with the clerk of the court in which the garnishment is pending; or

(C)(i) When the plaintiff, or plaintiff's attorney, states under oath that the defendant resides out of this state, has departed this state, or after due diligence cannot be found within this state, or has concealed his or her place of residence from the plaintiff, to be sent to the defendant by regular mail at the address at which the defendant:

(I) Accepted service in the action resulting in the judgment;

(II) Identified as his or her residence in any pleading in the action resulting in the judgment; or

(III) Was served as shown on the return of service in the action resulting in the judgment.

(ii) A certificate of such mailing shall be filed with the clerk of the court in which the garnishment is pending by the person mailing such notice.

(2) The methods of notification specified in this subsection shall be cumulative and may be used in any sequence or combination. When it appears that a plaintiff has reasonably, diligently, and in good faith attempted to use one method, another method thereafter may be utilized; for the time during which the attempt was being made, the time limit shall be tolled for the subsequent method.

(3) No money or other property paid or delivered to the court by the garnishee shall be distributed nor shall any judgment be rendered against the garnishee until:

(A) Ten days have elapsed from the date of filing a certificate of compliance with at least one method of notification provided by this subsection; and

(B) If a garnishee answer was filed:

(i) Twenty days have elapsed from the filing of the garnishee's answer without a claim having been filed by any defendant or third party and without a traverse having been filed by the plaintiff; or

(ii) All traverses filed prior to the twenty-first day from the filing of the garnishee's answer have been adjudicated and all claims have been adjudicated.

§ 18-4-9

(a) Summonses of garnishment may issue from time to time until the judgment is paid or the garnishment proceeding is otherwise terminated.

(b) Except in a continuing garnishment or continuing garnishment for support, no new summons of garnishment on the same affidavit of garnishment shall be issued after two years from the date of the original filing of such affidavit. After two years from such original filing date and provided that no unadjudicated claims, traverses, appeals, motions, or other pleadings remain before the court, the garnishment proceeding, other than a continuing garnishment or continuing garnishment for support, based on such affidavit shall automatically stand dismissed unless there are funds remaining in the registry of the court or a new summons of garnishment has been issued in the preceding 30 days. In the event funds remain in the registry at such time and the plaintiff has filed its certificate of compliance pursuant to subparagraph (b)(3)(A) of Code Section 18-4-8 and has made its application for disbursement, all such funds will be deemed abandoned by the defendant and disbursed to the plaintiff, notwithstanding any other provision of this Code section.

§ 18-4-10

(a) The summons of garnishment shall state that if the garnishee fails to file a garnishee's answer to such summons in a timely manner, a judgment by default shall be entered against the garnishee for the amount remaining due on a judgment as shown in the plaintiff's affidavit of garnishment.

(b) The summons of garnishment shall be directed to the garnishee, commanding the garnishee to respond and state what money or other property is subject to garnishment. Except as provided in subsection (c) of this Code section and Articles 2 and 3 of this chapter, the garnishee's answer shall be filed with the court issuing the summons not sooner than 30 days and not later than 45 days after service of the summons, and the money or other property subject to garnishment shall be sent to or delivered to the court concurrently with the sending or filing of such garnishee's answer.

(c) When the garnishee is a financial institution and the garnishment is not a continuing garnishment or continuing garnishment for support, such garnishee's answer shall be filed with the court issuing the summons of garnishment not sooner than five days and not later than 15 days after the date of service of the summons, and the money or other property subject to garnishment shall be paid to or delivered to the court concurrently with such garnishee's answer. If the defendant does not have an active account with and is not the owner of any money or other property in the possession of such financial institution, then the garnishee may immediately file the garnishee's answer; provided, however, that such garnishee's answer shall be filed not later than 15 days after the date of service of the summons.

(d) When the garnishee is a financial institution and the garnishment is pursuant to Article 2 or 3 of this chapter, any accounts of the defendant shall be subject to the process of garnishment only for the garnishment period described in paragraph (2) of subsection (c) of Code Section 18-4-4, and any funds due to be paid to the garnishment court through such garnishment period may be held and delivered with the first garnishee answer pursuant to Code Section 18-4-42.

§ 18-4-11

(a) Within the time prescribed by Code Section 18-4-10, the garnishee shall file a garnishee answer. Concurrently with the garnishee's answer, the garnishee shall send or deliver to the court the money or other property admitted in the garnishee's answer to be subject to garnishment except, when the conditions of subsection (d) of Code Section 18-4-5 have been satisfied, the specified amounts of money in each answer shall, instead, be paid directly to the plaintiff.

(b) If in responding to the summons of garnishment the garnishee shall state that the property of the defendant includes property in a safe-deposit box or similar property, the garnishee shall respond to the court issuing the summons of garnishment as to the existence of such safe-deposit box and shall restrict access to any contents of such safe-deposit box until the earlier of:

(1) Further order of such court regarding the disposition of the contents of such safe-deposit box; or

(2) The elapsing of 120 days from the date of filing of the garnishee answer unless such time has been extended by the court.

(c) If the garnishee has been served with a summons in more than one garnishment case involving the same defendant, the garnishee shall state in each garnishee answer that the money or other property is being paid or delivered to a specifically named court subject to the demands of other cases and shall give the numbers of all such cases in each garnishee answer.

(d) If the garnishee is unable to respond with the specific information required by this Code section, the garnishee's inability shall be stated in the garnishee's answer, together with all the facts plainly, fully, and distinctly set forth, so as to enable the court to give judgment thereon.

(e) The form for a garnishee answer is set forth in Code Section 18-4-84, and the form for a financial institution garnishee answer is set forth in Code Section 18-4-85.

(f) A garnishee may elect to file, and a court shall not reject, a physical answer or answers of garnishment even in courts otherwise subject to electronic filing requirements.

§ 18-4-12

(a) When a garnishment proceeding is filed in a court under any provision of this chapter involving an entity as garnishee, the execution and filing of a garnishee answer may be done by an entity's authorized officer, employee, or any individual or entity engaged by such garnishee for the purpose of processing payrolls or accounts payable and shall not constitute the practice of law. If a claim or traverse is filed to such entity's garnishee answer in a court of record, an attorney shall be required to represent such entity in further garnishment proceedings.

(b) An entity's payment into court of any money or other property of the defendant, or money or other property which is admitted to be subject to garnishment, may be done by an entity's authorized officer, employee, or any individual or entity engaged by such garnishee for the purpose of processing payrolls or accounts payable and shall not constitute the practice of law.

§ 18-4-13

(a) All garnishee answers shall, concurrently with filing, be served by the garnishee upon the plaintiff or the plaintiff's attorney and the defendant or the defendant's attorney.

(b)(1) Service of the garnishee's answer upon the plaintiff shall be shown by the:

(A) Written acknowledgment of the plaintiff or the plaintiff's attorney; or

(B) Certificate of the garnishee or the garnishee's attorney, attached to the garnishee's answer, that a copy of the garnishee's answer was mailed to the plaintiff or the plaintiff's attorney.

(2) No service upon the plaintiff shall be required unless the name and address of the plaintiff or the plaintiff's attorney shall legibly appear on the face of the summons of garnishment.

(3) If the garnishee fails to serve the plaintiff, the plaintiff shall be allowed 20 days from the time the plaintiff receives actual notice of the garnishee's answer to traverse the garnishee's answer.

(c)(1) Service of the garnishee's answer upon the defendant shall be shown by the:

(A) Written acknowledgment of the defendant or the defendant's attorney; or

(B) Certificate of the garnishee or the garnishee's attorney, attached to the garnishee's answer, that a copy of the garnishee's answer was mailed to the:

(i) Defendant's attorney; or

(ii) Defendant at the last address known to the garnishee.

(2) No service upon the defendant shall be required by a financial institution garnishee if the defendant does not have an active account with and is not the owner of any money or other property in the possession of such financial institution.

(d) The garnishee shall provide the defendant, by regular mail at the defendant's last address known to the garnishee, with the Notice to Defendant of Right Against Garnishment of Money, Including Wages, and Other Property and the Defendant's Claim Form that it received from the plaintiff as set forth in subsection (a) of Code Section 18-4-8.

§ 18-4-14

(a) The garnishee shall be entitled to the garnishee's actual reasonable expenses, including attorney's fees, in preparing and filing a garnishee's answer. The amount of expenses incurred shall be taxed in the bill of costs and shall be paid by the party upon whom the cost is cast, as costs are cast in other cases. The garnishee may deduct $50.00 or 10 percent of the amount paid into court, whichever is greater, not to exceed $100.00, as reasonable attorney's fees or expenses.

(b) If the garnishee can show that the garnishee's actual attorney's fees or expenses exceed the amount provided for in subsection (a) of this Code section, the garnishee shall petition the court for a hearing at the time of filing the garnishee's answer without deducting from the amount paid into court. Upon hearing from the parties, the court may enter an order for payment of actual attorney's fees or expenses proven by the garnishee to have been incurred reasonably in preparing and filing the garnishee's answer.

(c) In the event the garnishee makes the deduction permitted in subsection (a) of this Code section but the costs are later cast upon the garnishee, the garnishee shall forthwith refund to the defendant the funds deducted; if the costs are later cast against the plaintiff, the court shall enter judgment in favor of the defendant and against the plaintiff for the amount of the deductions made by the garnishee.

(d) Nothing in this Code section shall limit the reimbursement of costs incurred by a financial institution as provided in Code Section 7-1-237, nor interfere with, exclude, or supplant any contractual arrangement for a garnishee to reimburse itself for costs or fees of legal processing due to a garnishment.

§ 18-4-15

(a) A garnishment proceeding is an action between the plaintiff and garnishee; provided, however, that at any time before a judgment is entered, an order to disburse funds is issued, or money or other property subject to garnishment is distributed by the court, whichever occurs first, the defendant may become a party to the garnishment by filing a claim with the clerk of court and may use the form set forth in Code Section 18-4-82. A defendant's claim shall assert the basis upon which he or she claims that his or her money or other property is exempt from garnishment. Money or other property may be exempt from garnishment for a variety of reasons, including, but not limited to, the limitations on garnishment as provided in Code Sections 18-4-5 and 18-4-53, exemptions as provided in Code Section 18-4-6, the plaintiff not having a judgment against the defendant, the amount claimed due by the plaintiff being erroneous, such money or other property being subject to a claim held by a third party that is superior to the judgment described in the affidavit of garnishment, or other legal or statutory defenses. Even when earnings are held at a financial institution, such money may be exempt from garnishment due to the limitations on garnishment as provided in Code Sections 18-4-5 and 18-4-53, exemptions as provided in Code Section 18-4-6, or other reasons.

(b) The defendant shall serve a copy of his or her claim upon the plaintiff and garnishee. The clerk of court shall transmit a copy of the defendant's claim to the plaintiff and garnishee. If the defendant's claim alleges that money or other property in the possession of the court may be subject to a claim held by a third party that is superior to the judgment described in the affidavit of garnishment, the defendant shall serve a copy of his or her claim upon the third party named in such claim.

(c) The defendant shall become a party to all proceedings by filing a claim pursuant to this Code section.

(d) Except as provided in subsection (h) of this Code section, upon the filing of the defendant's claim, a judge of the court in which the garnishment is pending shall order a hearing to be held not more than ten days from the date the claim is filed. The form for the order for such hearing is set forth in Code Section 18-4-83. Such hearing shall be available to the defendant as a matter of right after filing his or her claim, and no further summons of garnishment shall issue nor shall any money or other property paid or delivered to the court as subject to garnishment be disbursed until the hearing shall be held.

(e) The validity of the judgment upon which a garnishment is based shall only be challenged in accordance with Chapter 11 of Title 9, and no such challenge shall be entertained in the garnishment case. However, when the court finds that the defendant has attacked the validity of the judgment upon which the garnishment is based in an appropriate forum, the judge may order the garnishment be stayed until the validity of the judgment has been determined in such forum.

(f) The filing of a claim by the defendant shall not relieve the garnishee of the duties of filing a garnishee answer, of withholding money or other property subject to garnishment, or of paying or delivering to the court any money or other property subject to garnishment.

(g) A party's failure to include the civil action file number on a defendant's claim shall not affect the validity of such claim.

(h) A court may decline to order a hearing upon, and may issue a denial of, any defendant's claim which is filed after the dismissal of a garnishment action against such defendant. Except in a continuing garnishment or continuing garnishment for support, a court may decline to order a hearing upon, and may issue a denial of, any claim filed by a defendant which comes after a judgment is entered, an order to disburse funds is issued, or money or other property subject to garnishment is distributed by the court. No claim may succeed upon any basis which was already raised and adjudicated, or which was capable of being raised and adjudicated, in any claim previously made in the same garnishment action by the same defendant.

§ 18-4-16

(a) Within 20 days after the plaintiff has been served with the garnishee's answer, the plaintiff may file a traverse stating that the garnishee's answer is untrue or legally insufficient. Such statement places in issue all questions of law and fact concerning the garnishee's answer. The form for a plaintiff's traverse is set forth in Code Section 18-4-87.

(b) The plaintiff may also file a traverse within 30 days after the plaintiff has been served with a garnishee's motion to modify default judgment pursuant to Code Section 18-4-24 or 18-4-43, stating that the motion is untrue or legally insufficient, and by doing so bears the burden of proving that the motion to modify default was not timely, that the costs to accompany such motion were not paid or were paid in an incorrect amount, or that the total of money or property identified in and paid with garnishee's motion to modify as belonging or being owed to the defendant was not correct. The timeliness of the motion to modify, the payment of costs to accompany such motion, and the amount due from garnishee as belonging or being owed to the defendant during the applicable period are the only issues for trial on a traverse pursuant to this subsection. If a garnishee's motion to modify is found to be true and legally sufficient but for payment of costs in an incorrect amount, the court shall allow the garnishee to pay the remaining unpaid cost amount within a time not less than 30 days, shall consider the motion modified accordingly, and upon such payment shall grant the modification sought in said motion.

§ 18-4-17

At any time before judgment is entered on the garnishee's answer or money or other property subject to garnishment is distributed, any person may file a third-party claim in writing under oath stating that he or she has a claim superior to that of the plaintiff to the money or other property in the hands of the garnishee subject to the process of garnishment, and the third-party claimant shall be a party to all further proceedings upon the garnishment. A third-party claimant shall serve his or her claim upon the plaintiff, defendant, and garnishee. The form for a third-party claim is set forth in Code Section 18-4-88.

§ 18-4-18

When money or other property in court is subject to a third-party claim or to more than one garnishment case, the party with the oldest entered judgment shall have priority to such money or other property and any interested party to any one of the garnishment cases may make a motion to the court where such money or other property has been deposited for the distribution of such money or other property. Each party of interest in each case and the clerk of court shall be served with a copy of the motion. Upon hearing the motion, the court shall enter an order directing that the clerk be paid the court cost of each garnishment proceeding first, and all remaining money or other property shall be distributed in accordance with the laws governing the relative priority of claims, judgments, and liens.

§ 18-4-19

(a) After the garnishee's answer is filed, the defendant's claim shall be tried first, the plaintiff's traverse shall be tried second, and third-party claims shall be tried last; provided, however, that the court shall retain the money or other property subject to garnishment until the completion of the trial of all claims and traverses which are filed under this chapter. The court may consolidate or bifurcate such actions for trial in the court's discretion.

(b) If a claim or traverse has been filed, all parties of record may introduce evidence to establish their respective interests in the money or other property in court, and the court shall direct that such money or other property be distributed in accordance with the laws governing the relative priority of claims, judgments, and liens.

(c) When the defendant, garnishee, or third-party claimant prevails upon the trial of his or her claim:

(1) That the plaintiff does not have a judgment against the defendant or that the plaintiff's affidavit of garnishment is untrue or is legally insufficient, the garnishment case shall be dismissed by the court, and any money or other property belonging to the defendant in the possession of the court shall be restored to the defendant unless another claim or traverse thereto has been filed;

(2) That the amount shown to be due on the plaintiff's affidavit of garnishment is incorrect, the court shall allow the summons of garnishment to be amended to the amount proven to be owed, and if such amount is less than the amount shown to be due by the plaintiff, any money or other property belonging to the defendant in the possession of the court in excess of the amount due shall be restored to the defendant unless another claim or traverse thereto has been filed;

(3) That the money or other property belonging to the defendant in the possession of the court is exempt from garnishment, such exempt money or other property shall be restored directly to the defendant. The court shall order such restoration within 48 hours; and

(4) Based on any legal or statutory defense or that money or other property in the possession of the court may be subject to a claim held by a third party that is superior to the judgment described in the affidavit of garnishment, the court shall determine the disposition of the money or other property belonging to the defendant in the possession of the court.

(d) On the trial of the plaintiff's traverse, if the court finds:

(1) The garnishee has failed to respond properly to the summons of garnishment, the court shall disallow any expenses demanded by the garnishee and shall enter a judgment for any money or other property the court finds subject to garnishment which the garnishee has failed to pay or deliver to the court or to the plaintiff; provided, however, that the total amount of such judgment shall not exceed the amount shown to be due by the plaintiff, together with the costs of the garnishment proceeding; or

(2) The plaintiff's traverse lacked reasonable justification, the court shall award the garnishee a judgment against the plaintiff for its attorney's fees incurred in connection with the traverse.

(e) A defendant shall not be allowed to present evidence, make an argument, or prevail on a claim that money or other property in a garnishment may be subject to a claim by a third party. When a claim of exemption or defense to a garnishment proceeding belongs to a defendant, a third-party claimant shall not be allowed to present evidence, make an argument, or prevail on any such claim.

§ 18-4-20

(a) When no claim has been filed and no traverse has been filed within 20 days after the garnishee's answer is filed:

(1) If money is paid or delivered to the court by the garnishee, the clerk of the court shall pay the money to the plaintiff or the plaintiff's attorney upon application, and the garnishee shall be automatically discharged from further liability with respect to the summons of garnishment so answered;

(2) If property is delivered to the court by the garnishee, the sheriff, marshal, constable, or like officer of the court shall sell the property in the manner provided by law for the sale of property levied under an execution, and the garnishee shall be automatically discharged from further liability with respect to the summons of garnishment so answered. The proceeds of such sale shall be paid or delivered to the plaintiff or the plaintiff's attorney upon application; or

(3) If money or other property admitted to be subject to the garnishment is not paid or delivered to the court, judgment shall be entered for the plaintiff and against the garnishee for such money or other property and execution shall issue on the judgment.

(b) The application described under paragraphs (1) and (2) of subsection (a) of this Code section may be made at any time concurrent with, or following the filing of the garnishment action, and need only be made once in any such action regardless of the number of answers filed.

§ 18-4-21

Except as provided in Code Section 18-4-22, when a garnishee fails or refuses to file a garnishee answer by the forty-fifth day after service of the summons of garnishment, such garnishee shall automatically be in default. The default may be opened as a matter of right by the filing of a garnishee answer within 15 days of the day of default and payment of costs. If the case is still in default after the expiration of the period of 15 days, judgment by default may be entered at any time thereafter against such garnishee for the amount remaining due on the judgment obtained against the defendant as shown in the plaintiff's affidavit of garnishment.

§ 18-4-22

When a garnishee is a financial institution and fails or refuses to file a garnishee answer by the fifteenth day after the date of service of the summons of garnishment, such garnishee shall automatically be in default. The default may be opened as a matter of right by the filing of a garnishee answer within 15 days of the day of default and payment of costs. If the case is still in default after the expiration of the period of 15 days, judgment by default may be entered at any time thereafter against such garnishee for the amount remaining due on the judgment obtained against the defendant as shown in the plaintiff's affidavit of garnishment.

§ 18-4-23

(a) A garnishee may be relieved from liability for failure to file a garnishee answer if the plaintiff failed to provide the information required by paragraph (2) of subsection (b) of Code Section 18-4-7 that would reasonably enable the garnishee to respond properly to the summons of garnishment and a good faith effort to locate the requested property was made by the garnishee based on the information provided by the plaintiff. In determining whether a garnishee may be relieved of liability, the court shall consider any information or circumstances, including but not limited to the accuracy and quantity of the information supplied by the plaintiff pursuant to paragraph (2) of subsection (b) of Code Section 18-4-7, the manner in which such garnishee maintains and locates its records, the compliance by such garnishee with its own procedures, and the conformity of the record systems and procedures with reasonable commercial standards prevailing in the area in which such garnishee is located.

(b) A garnishee shall not be subject to liability to any party or nonparty to the garnishment at issue arising from the attachment of a lien or the freezing, payment, or delivery into court of money or other property reasonably believed to be that of the defendant if such attachment, freezing, payment, or delivery is reasonably required by a good faith effort to comply with the summons of garnishment or with a modification of continuing garnishment by use of the form in Code Section 18-4-90. In determining whether such compliance by a garnishee is reasonable, the court shall consider any information or circumstances, including but not limited to the accuracy and quantity of the information supplied by the plaintiff pursuant to paragraph (2) of subsection (b) of Code Section 18-4-7, the manner in which such garnishee maintains and locates its records, the compliance by such garnishee with its own procedures, and the conformity of the record systems and procedures with reasonable commercial standards prevailing in the area in which such garnishee is located.

(c) A plaintiff shall not be subject to liability to any party or nonparty to the garnishment at issue arising from the attachment of a lien or the freezing, payment, or delivery into court of money or other property by a garnishee where the plaintiff's summons of garnishment and any attachments thereto include identifying information reasonably believed to be that of the defendant or defendants in the judgment upon which the garnishment is based.

(d) A garnishee shall not be liable to any party or nonparty to the garnishment at issue arising from the attachment of a lien or the freezing, payment, or delivery into court of money or other property where such liability is based on any allegation disputing, or subsequent determination denying, the validity of such garnishment as described in subsection (d) of Code Section 18-4-7.

(e)(1) As used in this subsection, the term:

(A) “Association account” means any account or safe-deposit box or similar property maintained by a corporation, statutory close corporation, limited liability company, partnership, limited partnership, limited liability partnership, foundation, trust, national, state, or local government or quasi-government entity, or other incorporated or unincorporated association.

(B) “Fiduciary account” means any account or safe-deposit box maintained by any party in a fiduciary capacity for any other party other than the defendant in garnishment. Without limiting the foregoing, such term shall include any trust account as defined in Code Section 7-1-810, any account created pursuant to a transfer governed by Code Section 44-5-119, and any agency account or safe-deposit box governed by a power of attorney or other written designation of authority.

(2)(A) A garnishee shall not be liable for failure to pay or deliver to the court money or other property in an association account that may be subject to garnishment by reason of the fact that a defendant is an authorized signer on such association account, unless the summons of garnishment alleges that the association account is being used by the defendant for an improper or unlawful purpose.

(B) A garnishee shall not be liable for failure to pay or deliver to the court money or other property in a fiduciary account that may be subject to garnishment if such fiduciary account specifically is exempted from garnishment as set forth in Code Section 18-4-6.

(C) A garnishee shall not be liable for failure to pay or deliver to the court money or other property in a fiduciary account that may be subject to garnishment by reason of the fact that a defendant is a fiduciary of the fiduciary account, unless the summons of garnishment is against the defendant in the defendant's capacity as a fiduciary of the fiduciary account or the summons of garnishment alleges that the fiduciary account is being used by the defendant for an improper or unlawful purpose.

§ 18-4-24

(a) When a default judgment is rendered against a garnishee under Code Section 18-4-21, 18-4-22, or 18-4-43, the plaintiff shall serve the garnishee, as provided in Code Section 9-11-4, or, when the garnishment is filed in a magistrate court, the plaintiff may serve the garnishee by using the constable of the magistrate court in the manner set forth in Code Section 9-11-4, with a copy of such default judgment. On a motion filed not later than 90 days from the date the garnishee was served with such default judgment, the garnishee may, upon payment of any costs paid by the plaintiff to the clerk of court for the initiation of the action, and service on the garnishee, have such default judgment modified so that the amount of such default judgment shall be reduced to an amount equal to $50.00 plus 100 percent of the amount by which the garnishee was indebted to the defendant, including all money or other property belonging to the defendant which came into the garnishee's hands:

(1) For garnishments pursuant to Article 1 of this chapter, from the time of service of the summons of garnishment through and including the last day of the applicable garnishment period, less any exemption allowed the defendant and any funds paid by the garnishee into the court or to the plaintiff during the time for which an answer was due and not filed; or

(2) For garnishments pursuant to Articles 2 and 3 of this chapter, from the time of service of the summons of garnishment or from the last timely answer, whichever is later, through and including the last day on which a timely garnishee answer could have been filed, less any exemption allowed the defendant and any funds paid by the garnishee into the court or to the plaintiff during the time for which an answer was due and not filed.

(b) On the trial of a motion to modify a default judgment, the burden of proof shall be upon any plaintiff who objects to the timeliness of the motion to establish that such motion was not filed within the time provided for by this Code section.

§ 18-4-25

(a) A release of a summons of garnishment:

(1) Shall relieve the garnishee from any obligation to file a garnishee answer to any summons of garnishment pending on the date of the release and shall authorize the garnishee to pay or deliver to the defendant any money or other property in the garnishee's possession belonging to the defendant; and

(2) Shall not operate as a dismissal of the garnishment proceeding.

(b) It shall be the duty of the clerk of the court in which garnishment proceedings are pending to issue a release of garnishment if:

(1) The plaintiff or the plaintiff's attorney requests a release in writing;

(2) The amount shown to be due on the plaintiff's affidavit of garnishment together with the costs of the garnishment proceeding are paid into court;

(3) A judge enters an order, after a hearing required by this chapter, directing that the garnishment be released; or

(4) The garnishment is dismissed.

(c) The form for a release of garnishment is set forth in Code Section 18-4-89.

§ 18-4-26

(a) Money due officials or employees of a municipal corporation or county of this state or of the state government, or any department or institution thereof, as salary for services performed for or on behalf of the municipal corporation or county of this state or the state, or any department or institution thereof, shall be subject to garnishment, except that in no event shall the officials' or employees' salary for services performed for or on behalf of any municipal corporation or county of this state or the state, or any department or institution thereof, be garnisheed when the judgment serving as a basis for the issuance of the summons of garnishment arises out of the liability incurred in the scope of the officials' or employees' governmental employment while responding to an emergency. In such cases, the summons of garnishment shall be directed to such political entity and served upon the person authorized by law to draw the warrant on the treasury of the government or to issue a check for such salary due, or upon the chief administrative officer of the political subdivision, department, agency, or instrumentality; and such entity shall be required to respond to such summons in accordance with the mandate thereof and as provided by this chapter.

(b) For purposes of this Code section only, the state and its political subdivisions, departments, agencies, and instrumentalities shall be deemed private persons; and jurisdiction for the purpose of issuing a summons of garnishment shall be restricted to a court located in the county in which the warrant is drawn on the treasury of the government or in which the check is issued for the salary due the official or employee of the state or its political subdivisions, departments, agencies, or instrumentalities.

§ 18-4-40

(a) In addition to garnishment proceedings otherwise available under this chapter, in all cases when a money judgment was obtained in a court of this state or a federal court or is being enforced in this state as provided in Article 5 of Chapter 12 of Title 9, the “Uniform Foreign-Country Money Judgments Recognition Act,” or Article 6 of Chapter 12 of Title 9, the “Uniform Enforcement of Foreign Judgments Law,” a plaintiff shall be entitled to the process of continuing garnishment against any garnishee who is an employer of or under periodic obligations for payment to the defendant against whom the judgment has been obtained.

(b) Unless otherwise specifically provided in this article, Article 1 of this chapter shall apply to this article.

§ 18-4-41

(a) In addition to the information required by subsection (a) of Code Section 18-4-3, an affidavit of continuing garnishment shall state that the plaintiff believes that the garnishee is or may be an employer of or under periodic obligations for payment to the defendant and subject to continuing garnishment.

(b) Only one summons of continuing garnishment shall issue on one affidavit of continuing garnishment.

(c) The plaintiff shall serve a summons of continuing garnishment and provide notice of exemptions in the same manner as provided for in Code Section 18-4-8.

(d) The form for an affidavit of continuing garnishment is set forth in Code Section 18-4-72. The form for a summons of continuing garnishment is set forth in Code Section 18-4-78, and the optional attachment thereto is set forth in Code Section 18-4-79.

§ 18-4-42

(a) As used in this Code section, the term “previous garnishee answer date” means the date upon which the immediately preceding garnishee answer was filed.

(b) If the garnishee owes the defendant any sum for wages earned as the garnishee's employee or any sum for goods or services periodically provided to the garnishee, the garnishee answer shall state specifically when the sum was earned by the defendant, whether the sum was earned on a daily, weekly, or monthly basis, any rate of pay and hours worked, and the basis for computation of earnings.

(c) The summons of continuing garnishment shall be directed to the garnishee, commanding and obligating the garnishee:

(1) To file a first garnishee answer with the court issuing such summons not sooner than 30 days and not later than 45 days after service of the summons of continuing garnishment, for the period of time from the date of service through and including the day of the first garnishee answer;

(2) To file subsequent garnishee answers with such court for the remaining period covered by the summons of continuing garnishment; and

(3) To send any money subject to continuing garnishment concurrently with each garnishee answer.

(d) Subsequent garnishee answers shall be filed not later than 45 days after the previous garnishee answer date stating what money of the defendant is subject to continuing garnishment from the previous garnishee answer date through and including the date on which the next garnishee answer is filed.

(e) The summons of continuing garnishment shall state that if the garnishee fails to file a garnishee's answer to such summons in a timely manner, a judgment by default shall be entered against the garnishee for the amount remaining due on a judgment as shown in the plaintiff's affidavit of continuing garnishment.

(f)(1) If the employment relationship or obligation for periodic payment between the garnishee and the defendant does not exist at the time of service of the summons of continuing garnishment, the garnishee shall state in the garnishee answer that such relationship does not exist and may immediately file the garnishee's answer; provided, however, that such garnishee's answer shall be filed not later than 45 days after service of the summons of continuing garnishment.

(2) If the employment relationship or obligation for periodic payment between the garnishee and the defendant terminates on or after service of the summons of continuing garnishment, the garnishee shall state in the garnishee answer that such relationship has been terminated, giving the date of termination, and may immediately file the garnishee's answer; provided, however, that such garnishee's answer shall be filed not later than 45 days after service of the summons of continuing garnishment or 45 days after the previous garnishee answer date, whichever is later.

(3) If, on or after service of the summons of continuing garnishment, the most recent two preceding garnishee answers filed at least 30 days apart advise that no payments are owed the defendant, the garnishee may elect to file a final garnishee answer, identified as such; provided, however, that such garnishee's answer shall be filed not later than 45 days after service of the summons of continuing garnishment or 45 days after the previous garnishee answer date, whichever is later.

(g) When a garnishee answer is made pursuant to subsection (f) of this Code section, no claim has been filed, and no traverse has been filed within 20 days after such garnishee answer is served on the plaintiff, the garnishee shall be discharged from further liability and obligation in the same manner as set forth under Code Section 18-4-20 for that summons with respect to the period of continuing garnishment remaining after the employment or periodic payment relationship is terminated, or a final garnishee answer is filed.

(h) The form for a garnishee's answer to a continuing garnishment is set forth in Code Section 18-4-86.

§ 18-4-43

(a) When a garnishee fails or refuses to file a garnishee answer at least once every 45 days, such garnishee shall automatically be in default. The default may be opened as provided in Code Section 18-4-21. If the case is still in default after the expiration of the period of 15 days, judgment by default may be entered at any time thereafter against such garnishee for the amount remaining due on the judgment obtained against the defendant as shown in the plaintiff's affidavit of continuing garnishment.

(b) A garnishee may obtain relief from a default judgment upon the same conditions as provided in Code Section 18-4-24.

§ 18-4-50

As used in this article, the term:

(1) “Earnings” shall have the same meaning as set forth in Code Section 18-4-1 and shall include disability or retirement benefits that are received from the Social Security Administration pursuant to Title II of the federal Social Security Act, disability benefits that are received pursuant to the federal Veterans' Benefits Act of 2010, 38 U.S.C. Section 101, et seq., workers' compensation benefits, whether temporary or permanent, and unemployment insurance benefits.

(2) “Judgment” means an order for periodic support obtained:

(A) In a court of this state;

(B) In a court of another state which has been registered pursuant to Code Section 19-11-77 under the “Uniform Reciprocal Enforcement of Support Act” or as provided in Article 3 of Chapter 11 of Title 19, the “Uniform Interstate Family Support Act,” or Article 6 of Chapter 12 of Title 9, the “Uniform Enforcement of Foreign Judgments Law”;

(C) By a final administrative order for support issued by the Department of Human Services; or

(D) By a final administrative order issued by a governmental agency of another state.

(3) “Periodic support” means money required to be paid regularly on a daily, weekly, monthly, or other similar specified frequency for the support of a minor child of the defendant or a spouse or former spouse of the defendant.

§ 18-4-51

(a) In addition to garnishment proceedings otherwise available under this chapter, in all cases when a judgment was obtained or is being enforced, a plaintiff shall be entitled to the process of continuing garnishment for support against any garnishee who is an employer of the defendant against whom the judgment has been obtained.

(b) Unless otherwise specifically provided in this article, Articles 1 and 2 of this chapter shall apply to this article.

§ 18-4-52

(a) In addition to the information required by subsection (a) of Code Sections 18-4-3 and 18-4-41, the plaintiff shall attach a certified copy of the judgment to be enforced to the affidavit of continuing garnishment for support and shall state the following in such affidavit:

(1) That the defendant is in arrears on the obligation of support in an amount equal to or in excess of one month's obligation as decreed in such judgment;

(2) The amount of arrearage which exists under such judgment as of the date of the execution of the affidavit;

(3) The amount of support due under the judgment for each obligee named therein, taking into account the possible attainment of majority or emancipation or death of any minor child named in such judgment; and

(4) The date of the termination of the obligation of support of each obligee named in the judgment, based upon the terms of such judgment, or, as to any obligee who is a minor child, the date each such obligee shall attain the age of 18 years.

(b) Such affidavit may be amended from time to time by subsequent affidavits of any party showing a modification or other amendment to the original judgment being enforced. Such amended or subsequent affidavits shall include a certified copy of any such modification or amendment and shall contain the information required by paragraphs (1) through (4) of subsection (a) of this Code section.

(c) The plaintiff shall serve the summons of continuing garnishment for support and provide notice of exemptions in the same manner as provided for in Code Section 18-4-8.

(d) The form for an affidavit of continuing garnishment for support is set forth in Code Section 18-4-73.

§ 18-4-53

(a) A summons of continuing garnishment for support shall contain a notice to the garnishee that such garnishment is based on a judgment governed by this article. The form for a summons of continuing garnishment for support is set forth in Code Section 18-4-80, and the optional attachment thereto is set forth in Code Section 18-4-81.

(b) Subject to the limitations set forth in Code Section 18-4-6, the maximum part of disposable earnings for any work week which shall be subject to continuing garnishment for support shall not exceed 50 percent of the defendant's disposable earnings for that week.

(c) Funds or benefits from an individual retirement account or from a pension or retirement program shall not be exempt from the process of continuing garnishment for support except as provided in subsection (b) of this Code section for other disposable earnings, unless a greater exemption is otherwise provided by law.

§ 18-4-54

(a) The money paid into court with the initial garnishee answer, after deduction for costs, shall be first applied to the support payment required to be paid on a periodic basis that has accrued on a daily basis, by converting the periodic amount to an annual amount and dividing by 365, from the date of the plaintiff's affidavit of continuing garnishment for support to the date of the initial garnishee answer. All sums in excess of such payment shall be applied to the original arrearage. As used in this subsection, the term “original arrearage” means the sum of arrears existing as of the date of the making of the plaintiff's affidavit of continuing garnishment for support, plus any amounts includable pursuant to subsection (c) of this Code section.

(b) If the amount claimed as original arrearage as of the date of the making of the plaintiff's affidavit of continuing garnishment for support is not satisfied by the money payable into court under the initial garnishee answer, after application of the funds as set forth in subsection (a) of this Code section, the garnishee shall file further garnishee answers no later than 45 days after the previous garnishee answer date, stating the earnings accrued and the basis of their accrual and tendering such money accruing in such period. The amounts paid into court pursuant to subsequent garnishee answers, over and above the periodic payment accruing within such period, shall be applied to the original arrearage until the same is retired.

(c) If the money paid into court pursuant to any garnishee answer is less than the sums due under the support requirement accruing over the same period of time, after allowance for any costs deductible from same, the resulting difference shall be added to the amount due as original arrearage until the same is retired by subsequent payments.

(d) The garnishee shall file additional garnishee answers until the original arrearage is retired and all support payments are current.

(e) Upon the termination of employment of or periodic obligations for payment to the defendant by the garnishee, the garnishee shall be required to file a final garnishee answer stating the date of the defendant's termination. After any two preceding, timely garnishee answers filed at least 30 days apart advise that no payments are owed the defendant, the garnishee may elect to file a final garnishee answer, identified as such; provided, however, that such garnishee's answer shall be filed not later than 45 days after service of the summons of continuing garnishment or 45 days after the previous garnishee answer date, whichever is later.

§ 18-4-55

The continuing garnishment for support described in this article shall attach for so long as the defendant is employed by or owed periodic payments from the garnishee or a final garnishee answer is served on the plaintiff and not traversed within 20 days and shall not terminate until the original arrearage is retired and all support payments are current. The garnishee may rely upon the information as to the termination date of the duty of support of any individual claimed in the affidavit of continuing garnishment for support, the amount of the duty of support to be paid, any sums paid by the defendant between the date of the filing of such affidavit and the date of the initial garnishee answer, and the amount of the original arrearage existing as of the date of such affidavit, unless the defendant files a claim against such affidavit or the garnishee's answer and the court enters any finding otherwise.

§ 18-4-70

(a) For the purpose of this chapter, the forms contained in this article shall be required to be used; provided, however, that a party may use its own format so long as it contains all of the information in the form. A defendant may use the form provided in Code Section 18-4-82 to file a claim or may use the defendant's own pleading. When a case involves more than one plaintiff, defendant, or garnishee, or necessitates the inclusion of additional information, the form may be expanded to allow for the information pertaining to all parties and such additional information to be displayed. Each summons of garnishment issued in an action shall display in the caption the name of the garnishee on whom that summons is to be served.

(b) The certificates of service provided within the forms in this article are included as examples. A party may modify a certificate of service in accordance with the circumstances of the case, including, but not limited to, transmission by email as provided in subsection (b) of Code Section 9-11-5 or by court rule.

(c) A court may combine multiple forms.

§ 18-4-71

AFFIDAVIT OF GARNISHMENT

☐ Check this box if the Garnishee is a financial institution.

☐ O.C.G.A. § 18-4-50, et seq.

Sworn to and subscribed before me this ________________ day

of _______________________________, 20.

---

Notary Public or Deputy Clerk of Court”

§ 18-4-72

AFFIDAVIT OF CONTINUING GARNISHMENT

DO NOT USE THIS FORM FOR A CONTINUING

GARNISHMENT

FOR CHILD SUPPORT OR ALIMONY.

O.C.G.A. § 18-4-73

1. I am the (Plaintiff) (Attorney at Law for Plaintiff) (Agent for Plaintiff). [Circle one]

3. $________________ is the balance due, which consists of the sum of $__________ Principal, $____________ Postjudgment interest, and $____________ Other (e.g., prejudgment interest, attorney's fees, costs [exclusive of the cost of this action]).

4. Upon the Affiant's personal knowledge or belief, the sum stated herein is unpaid.

5. The Affiant believes that the Garnishee is an employer of or under periodic obligations for payment of funds to the Defendant.

This __________ day of ________________, 20.

---

Affiant

---

Print name of Affiant

Sworn to and subscribed before me this _________

of___________________________________, 20____.

---

Notary Public or Deputy Clerk of Court”

§ 18-4-73

AFFIDAVIT OF CONTINUING GARNISHMENT FOR SUPPORT

1. I am the (Plaintiff) (Attorney at Law for Plaintiff) (Agent for Plaintiff). [Circle one]

3. The Affiant states that the Defendant is in arrears on the obligation for support in an amount equal to or in excess of one month's obligation as decreed in the judgment for support and provides the following information:

$__________ is the amount of arrearage which exists under the judgment as of the execution of this affidavit.

Check one of the boxes below and complete the requested information:

A. ☐ Periodic support is owed for one obligee, or the judgment sets forth a total amount of periodic support for multiple obligees as follows:

B. ☐ Periodic support is owed for multiple obligees, and the judgment sets forth a different amount of periodic support for each obligee as follows:

4. ☐ Check this box and attach a certified copy of the judgment for support hereto.

5. Upon the Affiant's personal knowledge or belief, the sum stated herein is unpaid.

6. The Affiant believes that the Garnishee is an employer of or under periodic obligations for payment of funds to the Defendant.

This __________ day of ________________, 20.

---

Affiant

---

Print name of Affiant

Sworn to and subscribed before me this _________

day of___________________________________, 20____.

---

Notary Public or Deputy Clerk of Court”

§ 18-4-74

SUMMONS OF GARNISHMENT

☐ O.C.G.A. § 18-4-80

COURT OF JUDGMENT

JUDGMENT CASE NO.

YOU ARE HEREBY COMMANDED to immediately hold all money, including wages, and other property, except what is known to be exempt, including property in safe-deposit boxes or similar property that you hold, belonging to the Defendant or obligations owed to the Defendant named above beginning on the day of service of this summons and including the next 29 days. You are FURTHER COMMANDED to file your answer, in writing, not sooner than 30 days and not later than 45 days from the date you were served with this summons, with the Clerk of this Court and serve a copy of your answer upon the Plaintiff or Plaintiff's Attorney named above and the Defendant named above, or the Defendant's Attorney, if known, at the time of making such answer. Your answer shall state what money, including wages, or other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant you hold beginning on the day of service of this summons and including the next 29 days. Money, including wages, or other property admitted in an answer to be subject to garnishment must be sent or delivered to the Court concurrently with your answer.

If, in answering this summons, you state that the property of the Defendant includes property in a safe-deposit box or similar property, you shall answer to the Court issuing this summons as to the existence of such safe-deposit box or similar property and shall restrict access to any contents of such safe-deposit box or similar property until further order of such Court regarding the disposition of such contents or 120 days from the date of filing your answer to this summons unless such time has been extended by the Court, whichever is sooner.

Should you fail to file a Garnishee Answer as required by this summons, a judgment by default will be rendered against you for the amount remaining due on a judgment as shown in the Plaintiff's Affidavit of Garnishment.

WITNESS , the Honorable ________________________, Judge of said Court.

This ____ day of __________________________, 20.

________________________, Clerk of Court

By: _________________________________

Deputy Clerk, ____________________ Court”

§ 18-4-75

ATTACHMENT FOR SUMMONS OF GARNISHMENT

Other known names of the Defendant:

Current and past addresses of the Defendant:

Social security number or federal tax identification number of the Defendant:

THIS PLEADING SHALL NOT BE FILED WITH THE COURT”

§ 18-4-76

SUMMONS OF GARNISHMENT ON A FINANCIAL

INSTITUTION

DO NOT USE THIS FORM IF THIS IS A CONTINUING

GARNISHMENT

(SEE O.C.G.A. §§ 18-4-72 and 18-4-78) OR CONTINUING

GARNISHMENT FOR CHILD SUPPORT OR

ALIMONY (SEE O.C.G.A. §§ 18-4-73 and 18-4-80).

☐ O.C.G.A. § 18-4-23

☐ Check this box if this is a garnishment for child support or alimony.

COURT OF JUDGMENT

JUDGMENT CASE NO.

YOU ARE HEREBY COMMANDED to immediately hold all money, including wages, and other property, except what is known to be exempt, including property in safe-deposit boxes or similar property that you hold, belonging to the Defendant named above beginning on the day of service of this summons and including the next five days. You are FURTHER COMMANDED to file your answer, in writing, not sooner than five days and not later than 15 days after the date you were served with this summons, with the Clerk of this Court and serve a copy of your answer upon the Plaintiff or Plaintiff's Attorney named above and the Defendant named above, or the Defendant's Attorney, if known, at the time of making such answer. Your answer shall state what money, including wages, or other property, except what is known to be exempt, belonging to the Defendant you hold beginning on the day of service of this summons and including the next five days. Money, including wages, or other property admitted in an answer to be subject to garnishment must be sent or delivered to the Court concurrently with your answer.

If, in answering this summons, you state that the property of the Defendant includes property in a safe-deposit box or similar property, you shall answer to the Court issuing this summons as to the existence of such safe-deposit box or similar property and shall restrict access to any contents of such safe-deposit box or similar property until further order of such Court regarding the disposition of such contents or 120 days from the date of filing your answer to this summons unless such time has been extended by the Court, whichever is sooner.

Should you fail to file a Garnishee Answer as required by this summons, a judgment by default will be rendered against you for the amount remaining due on the judgment as shown in the Plaintiff's Affidavit of Garnishment.

WITNESS , the Honorable ________________________, Judge of said Court.

This ____ day of __________________________, 20.

________________________, Clerk of Court

By: _________________________________

Deputy Clerk, ____________________ Court”

§ 18-4-77

ATTACHMENT FOR SUMMONS OF GARNISHMENT ON A FINANCIAL INSTITUTION

Other known names of the Defendant:

Current and past addresses of the Defendant:

Social security number or federal tax identification number of the Defendant:

Account or identification numbers of accounts of the Defendant used by the Garnishee:

Other allegations pursuant to O.C.G.A. § 18-4-23:

THIS PLEADING SHALL NOT BE FILED WITH THE COURT”

§ 18-4-78

SUMMONS OF CONTINUING GARNISHMENT

COURT OF JUDGMENT

JUDGMENT CASE NO.

YOU ARE HEREBY COMMANDED to immediately hold all money, including wages, and other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant named above beginning on the day of service of this summons and including the next 1,095 days. You are FURTHER COMMANDED to file your answer, in writing, not later than 45 days from the date you were served with this summons, with the Clerk of this Court and serve a copy of your answer upon the Plaintiff or Plaintiff's Attorney named above and the Defendant named above, or the Defendant's Attorney, if known, at the time of making such answer. Your answer shall state what money, including wages, or other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant you hold or owe beginning on the day of service of this summons and between the time of such service and the time of making your first answer. Thereafter, you are required to file further answers no later than 45 days after your last answer. Every further answer shall state what money, including wages, and other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant you hold or owe at and from the time of the last answer to the time of the current answer. YOU MUST FILE ADDITIONAL ANSWERS UNTIL THE SOONER OF: THE PAYMENT OF THE BALANCE SHOWN ON THE SUMMONS OF GARNISHMENT, THE EXPIRATION OF 1,095 DAYS, OR THE TERMINATION OF ANY RELATIONSHIP BETWEEN GARNISHEE AND DEFENDANT WHICH INCLUDES PERIODIC PAYMENT OBLIGATIONS FROM GARNISHEE TO DEFENDANT. Money, including wages, or other property admitted in an answer to be subject to continuing garnishment must be sent or delivered to the Court concurrently with each answer.

Should you fail to file Garnishee Answers as required by this summons, a judgment by default will be rendered against you for the amount remaining due on a judgment as shown in the Plaintiff's Affidavit of Continuing Garnishment.

WITNESS , the Honorable ________________________, Judge of said Court.

This ____ day of __________________________, 20.

________________________, Clerk of Court

By: _________________________________

Deputy Clerk, ____________________ Court”

§ 18-4-79

ATTACHMENT FOR SUMMONS OF CONTINUING GARNISHMENT

Other known names of the Defendant:

Current and past addresses of the Defendant:

Social security number or federal tax identification number of the Defendant:

THIS PLEADING SHALL NOT BE FILED WITH THE COURT”

§ 18-4-80

SUMMONS OF CONTINUING GARNISHMENT FOR SUPPORT

GOVERNED BY ARTICLE 3 OF CHAPTER 4 OF TITLE 18

COURT OF JUDGMENT

JUDGMENT CASE NO.

YOU ARE HEREBY COMMANDED to immediately hold all money, including wages, and other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant named above beginning on the day of service of this summons until the original arrearage is retired and all periodic support payments are current or until the termination of the garnishment. You are FURTHER COMMANDED to file your answer, in writing, not later than 45 days from the date you were served with this summons, with the Clerk of this Court and serve a copy of your answer upon the Plaintiff or Plaintiff's Attorney named above and the Defendant named above, or the Defendant's Attorney, if known, at the time of making such answer. Your answer shall state what money, including wages, or other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant you hold or owe beginning on the day of service of this summons and between the time of such service and the time of making your first answer. Thereafter, you are required to file further answers no later than 45 days after your last answer. Every further answer shall state what money, including wages, and other property, except what is known to be exempt, belonging to the Defendant or obligations owed to the Defendant you hold or owe at and from the time of the last answer to the time of the current answer. YOU MUST FILE ADDITIONAL ANSWERS UNTIL THE ORIGINAL ARREARAGE IS RETIRED AND ALL PERIODIC SUPPORT PAYMENTS ARE CURRENT. Money, including wages, or other property admitted in an answer to be subject to continuing garnishment must be sent or delivered to the Court concurrently with each answer. The Plaintiff and the Defendant are required by law to serve you with a copy of any amendment or modification to the original judgment.

Should you fail to file Garnishee Answers as required by this summons, a judgment by default will be rendered against you for the amount remaining due on a judgment as shown in the Plaintiff's Affidavit of Continuing Garnishment.

WITNESS , the Honorable ________________________, Judge of said Court.

This ____ day of __________________________, 20.

________________________, Clerk of Court

By: _________________________________

Deputy Clerk, ____________________ Court”

§ 18-4-81

ATTACHMENT FOR SUMMONS OF CONTINUING GARNISHMENT FOR SUPPORT

Other known names of the Defendant:

Current and past addresses of the Defendant:

Social security number or federal tax identification number of the Defendant:

THIS PLEADING SHALL NOT BE FILED WITH THE COURT”

§ 18-4-82

NOTICE TO DEFENDANT OF RIGHT AGAINST

GARNISHMENT OF MONEY, INCLUDING WAGES, AND

OTHER PROPERTY

You received this notice because money, including wages, and other property belonging to you have been garnished to pay a court judgment against you. HOWEVER, YOU MAY BE ABLE TO KEEP YOUR MONEY, INCLUDING WAGES, OR OTHER PROPERTY.

READ THIS NOTICE CAREFULLY.

State and federal law protects some money, including wages, from garnishment even if it is in a bank. Some common exemptions are benefits from social security, supplemental security income, unemployment, workers' compensation, the Veterans' Administration, state pension, retirement funds, and disability income. This list of exemptions does not include all possible exemptions. A more detailed list of exemptions is available at the Clerk of Court's office located at ________________________ (Name of Court), _________________________ (Address), _________________________ (City), Georgia ____ (ZIP Code), and on the website for the Attorney General (www.law.ga.gov).

Garnishment of your earnings from your employment is limited to the lesser of 25 percent of your disposable earnings for a week or the amount by which your disposable earnings for a week exceed $217.50. More than 25 percent of your disposable earnings may be taken from your earnings for the payment of child support or alimony or if a Chapter 13 bankruptcy allows a higher amount.

TO PROTECT YOUR MONEY, INCLUDING WAGES, AND OTHER PROPERTY FROM BEING GARNISHED, YOU MUST:

1. Complete the Defendant's Claim Form as set forth below; and

2. File this completed claim form with the Clerk of Court's office located at _____________________ (Name of Court), ____________________ (Address), ________________________ (City), Georgia _________ (ZIP Code).

FILE YOUR COMPLETED CLAIM FORM AS SOON AS POSSIBLE. You may lose your right to claim an exemption if you do not file your claim form within 20 days after the Garnishee's Answer is filed or if you do not mail or deliver a copy of your completed claim form to the Plaintiff and the Garnishee at the addresses listed on this notice.

The Court will schedule a hearing within ten days from when it receives your claim form. The Court will mail you the time and date of the hearing at the address that you provide on your claim form. You may go to the hearing with or without an attorney. You will need to give the Court documents or other proof that your money is exempt.

The Clerk of Court cannot give you legal advice. IF YOU NEED LEGAL ASSISTANCE, YOU SHOULD SEE AN ATTORNEY. If you cannot afford a private attorney, legal services may be available.

DEFENDANT'S CLAIM FORM

I CLAIM EXEMPTION from garnishment. Some of my money or property held by the garnishee is exempt because it is: (check all that apply)

☐ 1. Social security benefits.

☐ 2. Supplemental security income benefits.

☐ 3. Unemployment benefits.

☐ 4. Workers' compensation.

☐ 5. Veterans' benefits.

☐ 6. State pension benefits.

☐ 7. Disability income benefits.

☐ 8. Money that belongs to a joint account holder.

☐ 9. Child support or alimony.

☐ 10. Exempt wages, retirement, or pension benefits.

☐ 11. Exemptions for taxes due on income or earnings not subject to employer withholding.

☐ 12. Other exemptions as provided by law.

Explain:

I further state: (check all that apply)

☐ 1. The Plaintiff does not have a judgment against me.

☐ 2. The amount shown due on the Plaintiff's Affidavit of Garnishment is incorrect.

☐ 3. The Plaintiff's Affidavit of Garnishment is untrue or legally insufficient.

Send the notice of the hearing on my claim to me at:

Address:

Phone Number:

Email Address:

The statements made in this claim form are true to the best of my knowledge and belief.

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney and the Garnishee in the foregoing matter with a copy of this pleading by depositing it in the United States mail in a properly addressed envelope with adequate postage thereon.

This ______________ day of ______________, 20.

---

Defendant or Defendant's Attorney”

§ 18-4-83

ORDER FOR HEARING ON DEFENDANT'S CLAIM

It is hereby ordered that a hearing be held upon the Defendant's claim before this court on the __________ day of__________, 20___, at : _. M., and that the Clerk of Court shall transmit a copy of the Defendant's Claim Form and this order to the Plaintiff, the Defendant, and the Garnishee.

This day of, 20___.

---

Judge,

______________ Court of ____________ County

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney, the Defendant, and the Garnishee in the foregoing matter with a copy of this pleading by depositing it in the United States Mail in a properly addressed envelope with adequate postage thereon.

This day of, 20___.

---

Deputy Clerk of Court”

§ 18-4-84

GARNISHEE ANSWER OF (GARNISHEE)

1. At the time of service or from the time of service to the time of this Garnishee Answer, the Garnishee had in its possession the following described property of the Defendant:

2. At the time of service or from the time of service to the time of this Garnishee Answer, all obligations accruing from the Garnishee to the Defendant are in the amount of $ ___________.

3. $ ________ is the amount herewith paid into court.

4. The Garnishee further states: ___________________________________________.

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney and the Defendant or Defendant's Attorney in the foregoing matter with a copy of this pleading by depositing it in the United States mail in a properly addressed envelope with adequate postage thereon.

This ______________ day of ______________, 20.

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee”

§ 18-4-85

FINANCIAL INSTITUTION GARNISHEE ANSWER OF

(GARNISHEE)

1. At the time of service of the Summons of Garnishment on a Financial Institution and including the next five days, the Garnishee had in its possession the following described money and property of the Defendant:

2. $ ________ is the amount herewith paid into court.

3. ☐ Check this box if the Defendant is not presently an account holder of the Garnishee.

4. The Garnishee further states: ___________________________________________.

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney and the Defendant or Defendant's Attorney in the foregoing matter with a copy of this pleading by depositing it in the United States mail in a properly addressed envelope with adequate postage thereon.

This ______________ day of ______________, 20.

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee”

§ 18-4-86

GARNISHEE ANSWER OF (GARNISHEE) TO CONTINUING

GARNISHMENT

1. From the time of service of the Summons of Continuing Garnishment, if this is the first Garnishee Answer to such summons, otherwise from the time of the last Garnishee Answer to the Summons of Continuing Garnishment until the time of this Garnishee Answer, the Garnishee had in the Garnishee's possession the following described property of the Defendant:

2. From the time of service of the Summons of Continuing Garnishment, if this is the first Garnishee Answer to such summons, otherwise from the time of the last Garnishee Answer to the Summons of Continuing Garnishment until the time of this Garnishee Answer, all obligations accruing from the Garnishee to the Defendant are in the amount of $ __________.

$ ________ Gross earnings

$ ________ Total social security and withholding tax and other mandatory deductions required by law

$ ________ Total disposable earnings

$ ________ Amount of wages subject to garnishment.

4. $ __________ is the amount herewith paid into court.

5. ☐ Check this box if the Defendant is not presently employed by or owed periodic payments by the Garnishee.

7. ☐ Check this box if this is the last Garnishee Answer this Garnishee is required to file to the presently pending Summons of Garnishment in the above-styled case.

8. The Garnishee further states: __________________________________________

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney and the Defendant or Defendant's Attorney in the foregoing matter with a copy of this pleading by depositing it in the United States mail in a properly addressed envelope with adequate postage thereon.

This ______________ day of ______________, 20.

---

Garnishee,

Garnishee's Attorney, or

officer or employee of an entity Garnishee”

§ 18-4-87

PLAINTIFF'S TRAVERSE

Now comes the Plaintiff in the above-styled case and traverses the Garnishee Answer or Motion to Modify Default Judgment by saying the same is untrue or legally insufficient. The Plaintiff further states:

.

---

Plaintiff or Plaintiff's Attorney

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Defendant and the Garnishee in the foregoing matter with a copy of this pleading by depositing it in the United States mail in a properly addressed envelope with adequate postage thereon.

This ______________ day of ______________, 20.

---

Plaintiff or Plaintiff's Attorney”

§ 18-4-88

THIRD-PARTY CLAIM

Sworn to and subscribed before me this _________ day

of _______________________________, 20.

---

Notary Public or Deputy Clerk of Court

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney, the Defendant, and the Garnishee in the foregoing matter with a copy of this pleading by depositing it in the United States Mail in a properly addressed envelope with adequate postage thereon.

This __________day of _______, 20.

---

Third-party Claimant or Third-party Claimant's Attorney”

§ 18-4-89

RELEASE OF GARNISHMENT

To: __________

Garnishee

This is to notify you that you have been released from filing a Garnishee Answer to any and all Summons of Garnishment or Summons of Continuing Garnishment pending as of this date in the above-styled case.

This release authorizes you to pay or deliver to the Defendant in garnishment any money or other property in your possession belonging to the Defendant.

This release does not terminate the garnishment proceedings, nor does this release relieve you of any obligation placed on you by the service of a Summons of Garnishment subsequent to this date.

This __________ day of _______, 20.

---

Clerk,

__________ Court of __________ County

CERTIFICATE OF SERVICE

This is to certify that I have this day served the Plaintiff or Plaintiff's Attorney, the Defendant, and the Garnishee in the foregoing matter with a copy of this pleading by depositing it in the United States Mail in a properly addressed envelope with adequate postage thereon.

This __________ day of _______, 20.

---

Deputy Clerk of Court”

§ 18-4-90

MODIFICATION OF CONTINUING GARNISHMENT

To: ________

Garnishee

This is to notify you that the undersigned Plaintiff and Defendant have agreed to a modification of the above-styled garnishment action. Upon receipt of service of a legible copy of this document, stamped by the garnishment court, with the signatures of both Plaintiff and Defendant affixed and fully notarized, the Summons of Garnishment served upon you in this action is superseded as follows: you are commanded instead to make the following deduction from all obligations owed to the Defendant during the remaining garnishment period of the above-styled garnishment action:

1. The sum of $ __________ per week/two weeks/month/paycheck (circle one);

2. ________ % of the disposable income of Defendant; or

3. ________ % of the gross amount due the Defendant for ________ (state payment basis, e.g., invoice, monthly draw, all goods and services, etc.).

You are authorized and instructed to deliver such amount(s) to Plaintiff directly, by any electronic or other mechanism provided to you by Plaintiff if acceptable to you, or payable and addressed to:

______________________________(Plaintiff or attorney/firm name)

______________________________(Plaintiff or attorney street address)

______________________________(Plaintiff or attorney city, state, ZIP Code)

This Modification does not terminate the garnishment action, nor does it relieve you of the obligation to file answers of garnishment with the garnishment court and to serve such answers on the Plaintiff and Defendant within the times and in the manner prescribed by law.

This Modification is effective only upon service on you of a file-stamped copy of same.

Agreed to by:

Chapter 5 Debt Adjustment

§ 18-5-1

As used in this chapter, the term:

(1) “Debt adjusting” means doing business in debt adjustments, budget counseling, debt management, or debt pooling service or holding oneself out, by words of similar import, as providing services to debtors in the management of their debts and contracting with a debtor for a fee to:

(A) Effect the adjustment, compromise, or discharge of any account, note, or other indebtedness of the debtor; or

(B) Receive from the debtor and disburse to his or her creditors any money or other thing of value.

(2) “Person” means an individual, corporation, partnership, trust, association, or other legal entity.

(3) “Resides” means to live in a particular place, whether on a temporary or permanent basis.

§ 18-5-2

In the course of engaging in debt adjusting, it shall be unlawful for any person to accept from a debtor who resides in this state, either directly or indirectly, any charge, fee, contribution, or combination thereof in an amount in excess of 7.5 percent of the amount paid monthly by such debtor to such person for distribution to creditors of such debtor; provided, however, no provision of this chapter shall prohibit any person, in the course of engaging in debt adjusting, from imposing upon a debtor who resides in this state a reasonable and separate charge or fee for insufficient funds transactions.

§ 18-5-3

Nothing in this chapter shall apply to those situations involving debt adjusting incurred in the practice of law in this state. Nothing in this chapter shall apply to those persons or entities who incidentally engage in debt adjustment to adjust the indebtedness owed to said person or entity. Nothing in this chapter shall apply to the following entities or their subsidiaries: the Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; a bank, bank holding company, trust company, savings and loan association, credit union, credit card bank, or savings bank that is regulated and supervised by the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, or the Georgia Department of Banking and Finance; or persons as defined in Code Section 7-3-3 operating under Chapter 3 of Title 7, the “Georgia Installment Loan Act.”

§ 18-5-3.1

(a) Any person engaged in debt adjusting for debtors residing in this state shall meet the following annual requirements:

(1) Obtain from an independent third party certified public accountant an annual audit of all accounts of such person in which the funds of debtors are deposited and from which payments are made to creditors on behalf of debtors. A copy of the summary results of such annual audit shall be made available upon written request to any party so requesting a copy for a charge not to exceed the cost of the reproduction of the annual audit; and

(2) Obtain and maintain at all times insurance coverage for employee dishonesty, depositor's forgery, and computer fraud in an amount not less than the greater of $100,000.00 or 10 percent of the monthly average for the immediately preceding six months of the aggregate amount of all deposits made with such person by all debtors. The deductible on such coverage shall not exceed 10 percent of the face amount of the policy coverage. Such policy shall be issued by a company rated at least “A-” or its equivalent by a nationally recognized rating organization and such policy shall provide for 30 days' advance written notice of termination of the policy to be provided to the Attorney General's office.

(b) A copy of the annual audits and insurance policies required by this Code section shall be filed annually with the Attorney General's office.

(c) The Attorney General's office shall act as a repository for the audits, insurance, and termination notices furnished to such office pursuant to this Code section. No oversight responsibility shall be imposed upon such office by virtue of its receipt of such documents.

§ 18-5-3.2

(a) Any person engaged in debt adjusting shall disburse to the appropriate creditors all funds received from a debtor, less any fees authorized by this chapter, within 30 days of receipt of such funds.

(b) Any person engaged in debt adjusting shall maintain a separate trust account for the receipt of any and all funds from debtors and the disbursement of such funds on behalf of debtors.

§ 18-5-4

(a) Any person who engages in debt adjusting in violation of this chapter shall be guilty of a misdemeanor.

(b) Without limiting the applicability of subsection (a) of this Code section:

(1) Any person who engages in debt adjusting in violation of the provisions of Code Section 18-5-3.1 or subsection (b) of Code Section 18-5-3.2 shall further be liable for a civil fine of not less than $50,000.00; and

(2) Any person who engages in debt adjusting in violation of the provisions of Code Section 18-5-2 or subsection (a) of Code Section 18-5-3.2 shall further be liable to the debtor in an amount equal to the total of all fees, charges, or contributions paid by the debtor plus $5,000.00. Such debtor shall have the right to bring a cause of action directly against such person for violation of the provisions of this chapter.

(c) The Attorney General and prosecuting attorneys shall have the authority to conduct the criminal prosecution of all cases arising under this chapter and to conduct civil prosecution of cases arising under this chapter.

(d) A violation of Code Section 18-5-2, 18-5-3.1, or 18-5-3.2 shall additionally be a violation of Part 2 of Article 15 of Chapter 1 of Title 10, the “Fair Business Practices Act of 1975.”

§ 18-5-5

The Attorney General shall have the authority to promulgate rules and regulations and establish procedures necessary to carry into effect, implement, and enforce the provisions of this chapter. The authority granted to the Attorney General pursuant to this Code section shall be exercised at all times in conformity with Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.”