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MMLU / A creditor instituted a garnishment action against a woman who owed the creditor…

Problem

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question

A creditor instituted a garnishment action against a woman who owed the creditor a back due debt. This was the first action taken, and the creditor did not have a judgment. It served the notice of garnishment on the garnishee, the woman's employer. The employer honored the notice by holding all of the woman's earnings in escrow pending the creditor's lawsuit and entrance of final judgment against the woman. The state where defendant lived and worked had a provision for pre-judgment garnishment, as long as the money was held and not distributed until a judgment was entered. The money would be paid to the woman if a judgment was not entered with the next 120 days. The woman sued the employer and the creditor, demanding release of her earnings. Will the court order the garnishee to release the funds to the woman?

choices

  1. No, because the state procedure for protecting the woman's money until a judgment is entered is a fair one that comports with procedural due process.
  2. No, because the state has an interest in protecting the rights of creditors to collect debts through the garnishment procedure.
  3. Yes, because the only party that has garnishment rights in the United States is the Internal Revenue Service.
  4. Yes, because the interim freezing of wages without a chance to be heard violates procedural due process.

subject

professional_law

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Source and history

task_id
0b8f2cf4-3fb9-5fb3-beeb-e10783475b5d
task_key
all--test--0b8f2cf4-3fb9-5fb3-beeb-e10783475b5d
task_revision_id
1
config / split
all / test

Official source

initial import