Eliminating the 13-week limit on the garnishment of earnings of certain debtors.
Impact
The removal of the 13-week limit is expected to have a substantial impact on debtors, particularly those with unstable or limited income sources. Proponents of the bill argue that it will provide creditors with a more effective means of collecting debts, potentially leading to higher recovery rates. However, this has raised concerns among consumer advocacy groups who worry about the ability of debtors, especially low-income workers, to manage their finances under the pressure of continuous garnishment. Opponents contend that indefinite garnishment can lead to further financial instability for those already struggling with debt.
Summary
Senate Bill 327 seeks to amend the existing laws regarding the garnishment of earnings in Wisconsin by eliminating the 13-week limit currently imposed on such garnishments. Under the current law, creditors can garnish a debtor's earnings for no longer than 13 weeks, which is intended to provide some form of relief for debtors. This bill proposes to remove that limitation, allowing creditors to garnish earnings indefinitely until a debt is satisfied, thereby significantly increasing the potential for total garnishment over time.
Contention
One notable point of contention surrounding SB327 is the balance between creditor's rights to recover debts and the protections necessary for debtors. Supporters believe that the bill will enhance the legal tools available to creditors, making it easier for them to collect on unpaid debts. In contrast, critics express concerns that it could lead to abuses of the garnishment process, whereby individuals may face extreme hardship due to their earnings being deducted without an end point. This debate hinges on the need to protect vulnerable populations from becoming trapped in cycles of debt while ensuring that creditors can pursue valid claims effectively.
Debt collection, garnishment, medical debt, and consumer finance various governing provisions modified; debtor protections provided; statutory forms modified; and statutory form review required.