South Carolina General Assembly
117th Session, 2007-2008

Download This Version in Microsoft Word format

Bill 4368


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 155 TO TITLE 59 SO AS TO ENACT THE "SOUTH CAROLINA OUTSTANDING EDUCATIONAL BENEFITS GARNISHMENT ACT" TO PROVIDE THAT A PERSON WHO HAS RECOVERED JUDGMENT IN A COURT AGAINST ANOTHER PERSON TO COLLECT OUTSTANDING EDUCATIONAL BENEFITS HAS A RIGHT TO A WRIT OF GARNISHMENT TO SATISFY THE JUDGMENT HE HAS OBTAINED BY SUBJECTING TO GARNISHMENT SALARY OR WAGES OF THE JUDGMENT DEBTOR, TO PROVIDE THE JURISDICTION AND PROCEDURE FOR GARNISHMENT, AND TO DEFINE CERTAIN TERMS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Title 59 of the 1976 Code is amended by adding:

"CHAPTER 155

South Carolina Outstanding Educational Benefits Garnishment Act

Section 59-155-10.    This chapter may be cited as the 'South Carolina Outstanding Educational Benefits Garnishment Act'.

Section 59-155-20.    A person who has recovered judgment in a court against another person to collect outstanding educational benefits has a right to a writ of garnishment, as provided in this chapter, to satisfy the judgment he has obtained by subjecting to garnishment salary or wages of the judgment debtor. No other types of personal property of the debtor are subject to garnishment. As used in this chapter, 'property' of the debtor or any other similar term, when used in regard to garnishment, must be construed in the manner provided in this section.

Section 59-155-30.    Third-party collection organizations must obtain a judgment in order to garnish wages. If the amount of judgment is seven thousand five hundred dollars or less, jurisdiction over the garnishment action must be in the magistrates court. Otherwise, jurisdiction over the garnishment action is in the circuit court.

Section 59-155-40.    After judgment has been obtained against a defendant, the judgment creditor shall serve notice of intent to apply for a writ of garnishment. Before the writ of garnishment is issued, the judgment creditor also shall file with the notice a declaration stating the amount of the judgment and that the plaintiff does not believe that the defendant has in his possession property on which a levy may be made sufficient to satisfy the judgment. The declaration may be filed and the writ issued either before or after the return of execution. The notice must give the judgment debtor thirty days to respond. The response must be in writing and served upon the judgment creditor.

Section 59-155-50.    (A)    Thirty days after service of the notice, the judgment creditor may file with the appropriate court the original notice, declaration, affidavit of service, any response, and a motion for writ of garnishment together with a filing fee of twenty-five dollars. If the judgment debtor serves an answer to the notice, the court shall set the motion for hearing and notify all parties of the hearing.

(B)    If the judgment debtor fails to answer as required, the judgment creditor shall file with the appropriate court the original notice, declaration, affidavit of service, affidavit of default, and a motion for writ of garnishment. If the judgment debtor fails to answer, the court shall issue a writ of garnishment against the judgment debtor for the amount of the judgment.

(C)    Upon receipt of the writ of garnishment, the judgment creditor shall forward a copy to the employer of the judgment debtor. The writ must provide for the periodic payments of a stated portion of the salary or wages of the judgment debtor as provided in Section 59-155-60.

(D)    Until the judgment is satisfied or until otherwise provided by court order, the court shall allow the judgment debtor's employer to collect up to twenty-five dollars as a set up fee and up to five dollars per pay period against the salary or wages of the judgment debtor to reimburse the employer for administrative costs for deductions from the judgment debtor's salary or wages. In addition, an employer may withhold up to twenty-five dollars to finish the garnishment process.

(E)    The employer shall remit the funds withheld to the judgment creditor within thirty days after withholding.

(F)    The employer shall assume the position of hold harmless to all legal proceedings and has thirty days to remit payment to the judgment creditor.

Section 59-155-60.    As used in this chapter 'educational benefits' mean those debts for which a public institution of higher learning may garnish, and all increases, interest, fees, and penalties on the debt from the time it is due and payable, which have not been paid and for which all rights of administrative or judicial appeal have been exhausted or all time limits for those appeals have expired."

SECTION    2.    This act takes effect upon approval by the Governor.

----XX----

This web page was last updated on Monday, June 22, 2009 at 2:52 P.M.