No Lawyer Required: Garnishment Rules in Georgia Change Again in 2012
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Last fall, we reported that the Georgia Supreme Court had issued a decision that required employers to retain counsel for responding to garnishments filed in Georgia state and superior courts. To the dismay of many employers and business owners, the Court's ruling effectively prohibited non-lawyers, such as human resources professionals and payroll employees, from responding to routine garnishments filed in Georgia Courts.
The rules relating to garnishments in Georgia have changed again. On February 7, 2012, Governor Nathan Deal effectively undid the Georgia Supreme Court's ruling by signing into law HB 683, which permits an "authorized officer or employee" of a business to sign and file a garnishment answer. Effective immediately, employers can once again resume signing and filing routine garnishment answers in Georgia without involving a lawyer.
Another important change in the law is that the amount of money an employer responding to a garnishment can deduct for its expenses associated with filing an answer has increased. Under the old law, a garnishee was entitled to deduct either $25.00, or 10 percent of the amount paid into court up to a maximum amount of $50.00 -whichever was greater. Under the new law, a garnishee may deduct either $50.00, or 10 percent of the amount paid into court up to a maximum amount of $100.00 -whichever is greater.
Although it is no longer mandatory for employers to use a licensed attorney to handle routine garnishments, employers will still need to retain counsel for responding to default judgment and traverses.
This Client Alert is from a trusted alliance, of The McCart Group, Drew, Eckl & Farnham, LLP, February 13, 2012. For additional information or if you need assistance with responding to a default judgment or a traverse relating to a garnishment, please contact Joseph C. Chancey at (404) 885-6222 or jchancey@deflaw.com or Megan Mathews Noble at (404) 885-6142 or mnoble@noble.com.
Drew, Eckl & Farnham and The McCart Group will continue to keep an eye on this issue and will keep you informed if there are any additional changes.
While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
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