Hold Garnishment Pending Outcome of a Hearing?
Answer by Sam Ott, BOL Guru Guru Bio
Question: What action do we take if we are holding a garnishment during the 10-day period, and we receive notification that a hearing has been scheduled in 15 days? Are we to hold the garnishment pending the outcome of the hearing, or do we process the garnishment as usual?
Answer: You should follow your normal procedures and answer the garnishment within the normal time period. Unless you have received an order from the court which authorizes you to delay your answer, you could be deemed in violation of the garnishment statutes even if the hearing is resolved in your customer's favor. In some instances, the party or attorney who issued the garnishment may indicate that the bank can wait until after the hearing to respond. If that is the case, I suggest you obtain the consent to the delay in writing on the attorney's letterhead. I know some state garnishment statutes provide that a party who knowingly fails to respond to a garnishment summons is liable for the entire amount of the garnishment, rather than the amount that was in the target account at the time the garnishment was received by the bank.
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