Utah Code 70C-7-103. Definitions — Limitation on garnishment

70C-7-103. Definitions — Limitation on garnishment.

(1)

As used in this part:

Terms Used In Utah Code 70C-7-103

Agreement: means the bargain of the parties in fact as stated in a written contract or otherwise as found in the parties' language or by implication from other circumstances, including:

(a)	course of dealing;

(b)	usage of trade; or

(c)

course of performance. See Utah Code 70C-1-302

Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.

Disposable earnings: means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld. See Utah Code 70C-7-103

Earnings: means compensation paid or payable to an individual or for the individual's account for personal services rendered or to be rendered by the individual whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension, retirement, or disability program. See Utah Code 70C-1-302

Education loan: means a loan subject to this title, or notwithstanding Subsection 70C-1-202(2)(h)(ii)(B)(II), made by a depository institution that:

(i)	is closed end;

(ii)

is a qualified education loan as defined in 26 U. See Utah Code 70C-7-103

Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}

Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor

Garnishment: means a legal or equitable procedure through which the earnings of an individual are required to be withheld for payment of a debt. See Utah Code 70C-7-103

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

(a)

“Disposable earnings” means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld.

(b)

“Education loan” means a loan subject to this title, or notwithstanding Subsection 70C-1-202(2)(h)(ii)(B)(II), made by a depository institution that:

(i)	is closed end;

(ii)	is a qualified education loan as defined in 26 U.S.C. § 221(d);

(iii)

expressly states in the original loan documents that it is a qualified education loan or the proceeds will be used solely for qualified higher education expenses as defined in 26 U.S.C. Sec 221(d); and

(iv)	in a bankruptcy filing, the loan or any indebtedness relating to the loan is subject to the provisions of 11 U.S.C. § 523(a)(8).

(c)	“Garnishment” means a legal or equitable procedure through which the earnings of an individual are required to be withheld for payment of a debt.

(2)

The maximum part of the aggregate disposable earnings of an individual for any pay period that is subjected to garnishment to enforce payment of a judgment arising from a consumer credit agreement may not exceed the lesser of:

(a)	25% of the individual’s disposable earnings for that pay period;

(b)	the amount by which the individual’s disposable earnings for that pay period exceed 30 hours per week multiplied by the federal minimum hourly wage prescribed by Section 6(a)(1) of the Fair Labor Standards Act of 1938, 29 U.S.C. § 206(a)(1), in effect at the time the earnings are payable; or

(c)	15% of the individual’s disposable earnings for that pay period if the judgment relates to an education loan.

(3)	A court may not make, execute, or enforce an order or process in violation of this section.

Amended by Chapter 84, 2014 General Session

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