AB 233, as amended, Wieckowski. Wage garnishment: restrictions: student loans.
The Wage Garnishment Law prescribes the procedure for withholding an employee’s earnings for purposes of paying a debt. The law requires that a levy of execution upon the earnings of an employee be made by service of an earnings withholding order upon the employer. An earnings withholding order is issued by a levying officer upon receiving an application submitted by a judgment creditor, as specified. An employer is required, except as otherwise provided by statute, to withhold the amounts required by an earnings withholding order from all earnings of the employee payable for any pay period of the employee which ends during the withholding period.
This bill would provide that an earnings withholding order shall not be used for purposes of enforcing a judgment for the collection of debt that is from a student loan that is not made, insured, or guaranteed by the United State Government pursuant to the Federal Family Education Loan Program or the William D. Ford Federal Direct Loan Program. The bill would require a court to terminate an earnings withholding orderbegin insert end insertbegin insert issued on or after January 1, 2014,end insert upon proof by a judgment debtor that it was issued in violation of these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 706.053 is added to the Code of Civil
2Procedure, immediately after Section 706.052, to read:
An earnings withholding order shall not be used for
4purposes of enforcing a judgment for the collection of debt that
5the judgment debtor proves is from a student loan that is not made,
6insured, or guaranteed by the United States Government pursuant
7to the Federal Family Education Loan Program (20 U.S.C. Sec.
81071 et seq.) or the William D. Ford Federal Direct Loan Program
9(34 C.F.R. 685.100). A court shall terminate an earnings
10withholding orderbegin insert issued on or after January 1, 2014,end insert upon proof
11by the judgment debtor that the earnings withholding order enforces
12a judgment in violation of this section.
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