PRINTER'S NO. 1452
No. 1111 Session of 2007
INTRODUCED BY WAUGH, OCTOBER 15, 2007
REFERRED TO JUDICIARY, OCTOBER 15, 2007
AN ACT 1 Amending Title 42 (Judiciary and Judicial Procedure) of the 2 Pennsylvania Consolidated Statutes, further providing for the 3 attachment of wages by judgment creditors. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 8127(a) of Title 42 of the Pennsylvania 7 Consolidated Statutes is amended by adding a paragraph to read: 8 § 8127. Personal earnings exempt from process. 9 (a) General rule and exceptions.--The wages, salaries and 10 commissions of individuals shall while in the hands of the 11 employer be exempt from any attachment, execution or other 12 process except upon an action or proceeding: 13 * * * 14 (6) For debts owed to a judgment creditor, which debts 15 shall include unpaid obligations arising from the judgment 16 creditor's extension of credit, unpaid obligations arising 17 from the settlement of claims by parties to litigation and 18 final judgments determined by decision of the court.
1 (i) Attachments levied against the wages of a 2 judgment debtor under this paragraph shall constitute a 3 lien upon all attachable wages that are payable at the 4 time the attachment is served or which become payable 5 thereafter until the judgment, interest and costs, as set 6 forth in the attachment, are satisfied. The judgment 7 creditor shall cause notice of the attachment to be 8 delivered to the employer owing wages to the judgment 9 debtor by delivery of an order of execution, certified 10 copy of judgment or order of attachment for collection, 11 and the lien established hereunder shall attach upon 12 delivery of such notice. 13 (ii) The amount subject to attachment shall be 14 calculated per pay period. The sums attached under this 15 paragraph shall be no more than 25% of the judgment 16 debtor's net wages due for the pay period used for 17 calculation. 18 (iii) For the purposes of this paragraph, "net 19 wages" shall mean all wages paid less only the following 20 items: 21 (A) Federal, State and local income taxes. 22 (B) FICA payments and nonvoluntary retirement 23 payments. 24 (C) Union dues. 25 (D) Health insurance premiums. 26 (iv) While the attachment under this paragraph 27 remains a lien, the employer who is subject to a 28 garnishment shall withhold the attachable wages payable 29 to a judgment debtor and shall remit the amount withheld 30 to the judgment creditor or his legal representative 20070S1111B1452 - 2 -
1 within 15 days from the close of the last pay period in 2 each month. The employer shall be entitled to deduct from 3 the moneys collected from each employee the costs 4 incurred from the extra bookkeeping necessary to record 5 such transactions, not exceeding 2% of the amount of 6 money so collected, and shall be entitled to a receipt 7 therefor from the judgment creditor or his 8 representative. 9 (v) The judgment creditor attaching wages under this 10 paragraph shall, within seven business days after the 11 satisfaction of the total monetary amount of the 12 judgment, including interest and costs, notify the 13 employer in writing of the satisfaction. The judgment 14 creditor shall, within 30 days of satisfaction of the 15 monetary amount of the debt, take the necessary legal 16 steps to notify the clerk of the court of the judgment's 17 satisfaction. 18 (vi) All payments received by a judgment creditor 19 under this paragraph shall be credited first against the 20 record costs of the judgment and attachment order; second 21 against the accrued interest on the unpaid balance of the 22 judgment, if any; third against the principal amount of 23 the judgment; and fourth against those attorney fees and 24 costs actually assessed in the case. 25 * * * 26 Section 2. This act shall take effect in 30 days. I7L42JS/20070S1111B1452 - 3 -