US (United States) Code. Title 28. Chapter 176: Federal Debt Collection Procedure

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Judiciary and judicial procedure

  • Enviado por: El remitente no desea revelar su nombre
  • Idioma: inglés
  • País: Estados Unidos Estados Unidos
  • 71 páginas
publicidad

-CITE-

28 USC CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

-HEAD-

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

-MISC1-

Subchapter Sec.(!1)

A. Definitions and general provisions 3001

B. Prejudgment remedies 3101

C. Postjudgments (!2) remedies 3201

D. Fraudulent transfers (!2) 3301

-FOOTNOTE-

(!1) Editorially supplied.

(!2) So in original. Does not conform to subchapter heading.

-End-

-CITE-

28 USC SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-MISC1-

Sec.

3001. Applicability of chapter.

3002. Definitions.

3003. Rules of construction.

3004. Service of process; enforcement; notice.

3005. Application of chapter to judgments.

3006. Affidavit requirements.

3007. Perishable personal property.

3008. Proceedings before United States magistrate judges.

3009. United States marshals' authority to designate keeper.

3010. Co-owned property.

3011. Assessment of surcharge on a debt.

3012. Joinder of additional defendant.

3013. Modification or protective order; supervision of

enforcement.

3014. Exempt property.

3015. Discovery as to debtor's financial condition.

-CHANGE-

CHANGE OF NAME

"United States magistrate judges" substituted for "United States

magistrates" in item 3008 pursuant to section 321 of Pub. L.

101-650, set out as a note under section 631 of this title.

-End-

-CITE-

28 USC Sec. 3001 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3001. Applicability of chapter

-STATUTE-

(a) In General. - Except as provided in subsection (b), the (!1)

chapter provides the exclusive civil procedures for the United

States -

(1) to recover a judgment on a debt; or

(2) to obtain, before judgment on a claim for a debt, a remedy

in connection with such claim.

(b) Limitation. - To the extent that another Federal law

specifies procedures for recovering on a claim or a judgment for a

debt arising under such law, those procedures shall apply to such

claim or judgment to the extent those procedures are inconsistent

with this chapter.

(c) Amounts Owing Other Than Debts. - This chapter shall not

apply with respect to an amount owing that is not a debt or to a

claim for an amount owing that is not a debt.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4933.)

-MISC1-

EFFECTIVE DATE

Section 3631 of title XXXVI of Pub. L. 101-647 provided that:

"(a) Except as provided in subsection (b), this Act [probably

should be "title", meaning title XXXVI of Pub. L. 101-647, which

enacted this chapter and section 2044 of this title, amended

sections 550, 1962, 1963, and 2410 of this title, section 523 of

Title 11, Bankruptcy, and sections 3142 and 3552 of Title 18,

Crimes and Criminal Procedure, and enacted provisions set out as a

note under section 1 of this title] and the amendments made by this

Act [title] shall take effect 180 days after the date of the

enactment of this Act [Nov. 29, 1990].

"(b)(1) The amendments made by title I of this Act [probably

should be "subtitle A of this title", meaning subtitle A (Secs.

3611, 3302 [3612]) of title XXXVI of Pub. L. 101-647, which enacted

this chapter] shall apply with respect to actions pending on the

effective date of this Act [probably should be title XXXVI of Pub.

L. 101-647] in any court on -

"(A) a claim for a debt; or

"(B) a judgment for a debt.

"(2) All notices, writs, orders, and judgments in effect in such

actions shall continue in effect until superseded or modified in an

action under chapter 176 of title 28 of the United States Code, as

added by title I of this Act [subtitle A of this title].

"(3) For purposes of this subsection -

"(A) the term 'court' means a Federal, State, or local court,

and

"(B) the term 'debt' has the meaning given such term in section

and [sic] 3002(3) of such chapter."

-FOOTNOTE-

(!1) So in original. Probably should be "this".

-End-

-CITE-

28 USC Sec. 3002 01/06/03

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TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3002. Definitions

-STATUTE-

As used in this chapter:

(1) "Counsel for the United States" means -

(A) a United States attorney, an assistant United States

attorney designated to act on behalf of the United States

attorney, or an attorney with the United States Department of

Justice or with a Federal agency who has litigation authority;

and

(B) any private attorney authorized by contract made in

accordance with section 3718 of title 31 to conduct litigation

for collection of debts on behalf of the United States.

(2) "Court" means any court created by the Congress of the

United States, excluding the United States Tax Court.

(3) "Debt" means -

(A) an amount that is owing to the United States on account

of a direct loan, or loan insured or guaranteed, by the United

States; or

(B) an amount that is owing to the United States on account

of a fee, duty, lease, rent, service, sale of real or personal

property, overpayment, fine, assessment, penalty, restitution,

damages, interest, tax, bail bond forfeiture, reimbursement,

recovery of a cost incurred by the United States, or other

source of indebtedness to the United States, but that is not

owing under the terms of a contract originally entered into by

only persons other than the United States;

and includes any amount owing to the United States for the

benefit of an Indian tribe or individual Indian, but excludes any

amount to which the United States is entitled under section

3011(a).

(4) "Debtor" means a person who is liable for a debt or against

whom there is a claim for a debt.

(5) "Disposable earnings" means that part of earnings remaining

after all deductions required by law have been withheld.

(6) "Earnings" means compensation paid or payable for personal

services, whether denominated as wages, salary, commission,

bonus, or otherwise, and includes periodic payments pursuant to a

pension or retirement program.

(7) "Garnishee" means a person (other than the debtor) who has,

or is reasonably thought to have, possession, custody, or control

of any property in which the debtor has a substantial nonexempt

interest, including any obligation due the debtor or to become

due the debtor, and against whom a garnishment under section 3104

or 3205 is issued by a court.

(8) "Judgment" means a judgment, order, or decree entered in

favor of the United States in a court and arising from a civil or

criminal proceeding regarding a debt.

(9) "Nonexempt disposable earnings" means 25 percent of

disposable earnings, subject to section 303 of the Consumer

Credit Protection Act.

(10) "Person" includes a natural person (including an

individual Indian), a corporation, a partnership, an

unincorporated association, a trust, or an estate, or any other

public or private entity, including a State or local government

or an Indian tribe.

(11) "Prejudgment remedy" means the remedy of attachment,

receivership, garnishment, or sequestration authorized by this

chapter to be granted before judgment on the merits of a claim

for a debt.

(12) "Property" includes any present or future interest,

whether legal or equitable, in real, personal (including choses

in action), or mixed property, tangible or intangible, vested or

contingent, wherever located and however held (including

community property and property held in trust (including

spendthrift and pension trusts)), but excludes -

(A) property held in trust by the United States for the

benefit of an Indian tribe or individual Indian; and

(B) Indian lands subject to restrictions against alienation

imposed by the United States.

(13) "Security agreement" means an agreement that creates or

provides for a lien.

(14) "State" means any of the several States, the District of

Columbia, the Commonwealth of Puerto Rico, the Commonwealth of

the Northern Marianas, or any territory or possession of the

United States.

(15) "United States" means -

(A) a Federal corporation;

(B) an agency, department, commission, board, or other entity

of the United States; or

(C) an instrumentality of the United States.

(16) "United States marshal" means a United States marshal, a

deputy marshal, or an official of the United States Marshals

Service designated under section 564.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4933.)

-REFTEXT-

REFERENCES IN TEXT

Section 303 of the Consumer Credit Protection Act, referred to in

par. (9), is classified to section 1673 of Title 15, Commerce and

Trade.

-End-

-CITE-

28 USC Sec. 3003 01/06/03

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TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3003. Rules of construction

-STATUTE-

(a) Terms. - For purposes of this chapter -

(1) the terms "includes" and "including" are not limiting;

(2) the term "or" is not exclusive; and

(3) the singular includes the plural.

(b) Effect on Rights of the United States. - This chapter shall

not be construed to curtail or limit the right of the United States

under any other Federal law or any State law -

(1) to collect taxes or to collect any other amount collectible

in the same manner as a tax;

(2) to collect any fine, penalty, assessment, restitution, or

forfeiture arising in a criminal case;

(3) to appoint or seek the appointment of a receiver; or

(4) to enforce a security agreement.

(c) Effect on Other Laws. - This chapter shall not be construed

to supersede or modify the operation of -

(1) title 11;

(2) admiralty law;

(3) section 3713 of title 31;

(4) section 303 of the Consumer Credit Protection Act (15

U.S.C. 1673);

(5) a statute of limitation applicable to a criminal

proceeding;

(6) the common law or statutory rights to set-off or

recoupment;

(7) any Federal law authorizing, or any inherent authority of a

court to provide, injunctive relief;

(8) the authority of a court -

(A) to impose a sanction under the Federal Rules of Civil

Procedure;

(B) to appoint a receiver to effectuate its order; or

(C) to exercise the power of contempt under any Federal law;

(9) any law authorizing the United States to obtain partition,

or to recover possession, of property in which the United States

holds title; or

(10) any provision of any other chapter of this title, except

to the extent such provision is inconsistent with this chapter.

(d) Preemption. - This chapter shall preempt State law to the

extent such law is inconsistent with a provision of this chapter.

(e) Effect on Rights of the United States Under Foreign and

International Law. - This chapter shall not be construed to curtail

or limit the rights of the United States under foreign law, under a

treaty or an international agreement, or otherwise under

international law.

(f) Applicability of Federal Rules of Civil Procedure. - Except

as provided otherwise in this chapter, the Federal Rules of Civil

Procedure shall apply with respect to actions and proceedings under

this chapter.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4935.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsecs.

(c)(8)(A) and (f), are set out in the Appendix to this title.

-End-

-CITE-

28 USC Sec. 3004 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3004. Service of process; enforcement; notice

-STATUTE-

(a) Manner of Service. - A complaint, notice, writ, or other

process required to be served in an action or proceeding under this

chapter shall be served in accordance with the Federal Rules of

Civil Procedure unless otherwise provided in this chapter.

(b) Nationwide Enforcement. - (1) Except as provided in paragraph

(2) -

(A) any writ, order, judgment, or other process, including a

summons and complaint, filed under this chapter may be served in

any State; and

(B) such writ, order, or judgment may be enforced by the court

issuing the writ, order, or process, regardless of where the

person is served with the writ, order, or process.

(2) If the debtor so requests, within 20 days after receiving the

notice described in section 3101(d) or 3202(b), the action or

proceeding in which the writ, order, or judgment was issued shall

be transferred to the district court for the district in which the

debtor resides.

(c) Notice and Other Process. - At such time as counsel for the

United States considers appropriate, but not later than the time a

prejudgment or postjudgment remedy is put into effect under this

chapter, counsel for the United States shall exercise reasonable

diligence to serve on the debtor and any person who the United

States believes, after exercising due diligence, has possession,

custody, or control of the property, a copy of the application for

such remedy, the order granting such remedy, and the notice

required by section 3101(d) or 3202(b).

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4936.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec. (a),

are set out in the Appendix to this title.

-End-

-CITE-

28 USC Sec. 3005 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3005. Application of chapter to judgments

-STATUTE-

This chapter shall not apply with respect to a judgment on a debt

if such judgment is entered more than 10 years before the effective

date of this chapter.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4936.)

-REFTEXT-

REFERENCES IN TEXT

For effective date of this chapter, referred to in text, see

section 3631 of Pub. L. 101-647, set out as an Effective Date note

under section 3001 of this title.

-End-

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28 USC Sec. 3006 01/06/03

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TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3006. Affidavit requirements

-STATUTE-

Any affidavit required of the United States by this chapter may

be made on information and belief, if reliable and reasonably

necessary, establishing with particularity, to the court's

satisfaction, facts supporting the claim of the United States.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4936.)

-End-

-CITE-

28 USC Sec. 3007 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3007. Perishable personal property

-STATUTE-

(a) Authority To Sell. - If at any time during any action or

proceeding under this chapter the court determines on its own

initiative or upon motion of any party, that any seized or detained

personal property is likely to perish, waste, or be destroyed, or

otherwise substantially depreciate in value during the pendency of

the proceeding, the court shall order a commercially reasonable

sale of such property.

(b) Deposit of Sale Proceeds. - Within 5 days after such sale,

the proceeds shall be deposited with the clerk of the court,

accompanied by a statement in writing and signed by the United

States marshal, to be filed in the action or proceeding, stating

the time and place of sale, the name of the purchaser, the amount

received, and an itemized account of expenses.

(c) Presumption. - For purposes of liability on the part of the

United States, there shall be a presumption that the price paid at

a sale under subsection (a) is the fair market value of the

property or portion.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4937.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3102, 3103 of this title.

-End-

-CITE-

28 USC Sec. 3008 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3008. Proceedings before United States magistrate judges

-STATUTE-

A district court of the United States may assign its duties in

proceedings under this chapter to a United States magistrate judge

to the extent not inconsistent with the Constitution and laws of

the United States.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4937; amended Pub. L. 101-650, title III, Sec. 321, Dec. 1,

1990, 104 Stat. 5117.)

-CHANGE-

CHANGE OF NAME

"United States magistrate judges" substituted for "United States

magistrates" in catchline and "United States magistrate judge"

substituted for "United States magistrate" in text pursuant to

section 321 of Pub. L. 101-650, set out as a note under section 631

of this title.

-End-

-CITE-

28 USC Sec. 3009 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3009. United States marshals' authority to designate keeper

-STATUTE-

Whenever a United States marshal is authorized to seize property

pursuant to this chapter, the United States marshal may designate

another person or Federal agency to hold for safekeeping such

property seized.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4937.)

-End-

-CITE-

28 USC Sec. 3010 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3010. Co-owned property

-STATUTE-

(a) Limitation. - The remedies available to the United States

under this chapter may be enforced against property which is

co-owned by a debtor and any other person only to the extent

allowed by the law of the State where the property is located. This

section shall not be construed to limit any right or interest of a

debtor or co-owner in a retirement system for Federal military or

civilian personnel established by the United States or any agency

thereof or in a qualified retirement arrangement.

(b) Definitions. - For purposes of subsection (a) -

(1) the term "retirement system for Federal military or

civilian personnel" means a pension or annuity system for Federal

military or civilian personnel of more than one agency, or for

some or all of such personnel of a single agency, established by

statute or by regulation pursuant to statutory authority; and

(2) the term "qualified retirement arrangement" means a plan

qualified under section 401(a), 403(a), or 409 of the Internal

Revenue Code of 1986 or a plan that is subject to the

requirements of section 205 of the Employee Retirement Income

Security Act of 1974.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4937.)

-REFTEXT-

REFERENCES IN TEXT

Sections 401(a), 403(a), and 409 of the Internal Revenue Code of

1986, referred to in subsec. (b)(2), are classified to sections

401(a), 403(a), and 409, respectively, of Title 26, Internal

Revenue Code.

Section 205 of the Employee Retirement Income Security Act of

1974, referred to in subsec. (b)(2), is classified to section 1055

of Title 29, Labor.

-End-

-CITE-

28 USC Sec. 3011 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3011. Assessment of surcharge on a debt

-STATUTE-

(a) Surcharge Authorized. - In an action or proceeding under

subchapter B or C, and subject to subsection (b), the United States

is entitled to recover a surcharge of 10 percent of the amount of

the debt in connection with the recovery of the debt, to cover the

cost of processing and handling the litigation and enforcement

under this chapter of the claim for such debt.

(b) Limitation. - Subsection (a) shall not apply if -

(1) the United States receives an attorney's fee in connection

with the enforcement of the claim; or

(2) the law pursuant to which the action on the claim is based

provides any other amount to cover such costs.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4937.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3002 of this title; title

12 section 3768.

-End-

-CITE-

28 USC Sec. 3012 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3012. Joinder of additional defendant

-STATUTE-

The United States or the debtor may join as an additional

defendant in an action or proceeding under this chapter any person

reasonably believed to owe money (including money owed on account

of a requirement to provide goods or services pursuant to a loan or

loan guarantee extended under Federal law) to the debtor arising

out of the transaction or occurrence giving rise to a debt.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4938.)

-End-

-CITE-

28 USC Sec. 3013 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3013. Modification or protective order; supervision of

enforcement

-STATUTE-

The court may at any time on its own initiative or the motion of

any interested person, and after such notice as it may require,

make an order denying, limiting, conditioning, regulating,

extending, or modifying the use of any enforcement procedure under

this chapter.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4938.)

-End-

-CITE-

28 USC Sec. 3014 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3014. Exempt property

-STATUTE-

(a) Election To Exempt Property. - An individual debtor may, in

an action or proceeding under this chapter, elect to exempt

property listed in either paragraph (1) or, in the alternative,

paragraph (2). If such action or proceeding is against debtors who

are husband and wife, one debtor may not elect to exempt property

listed in paragraph (1) and the other debtor elect to exempt

property listed in paragraph (2). If the debtors cannot agree on

the alternative to be elected, they shall be deemed to elect

paragraph (1). Such property is either -

(1) property that is specified in section 522(d) of title 11,

as amended from time to time; or

(2)(A) any property that is exempt under Federal law, other

than paragraph (1), or State or local law that is applicable on

the date of the filing of the application for a remedy under this

chapter at the place in which the debtor's domicile has been

located for the 180 days immediately preceding the date of the

filing of such application, or for a longer portion of such

180-day period than in any other place; and

(B) any interest in property in which the debtor had,

immediately before the filing of such application, an interest as

a tenant by the entirety or joint tenant, or an interest in a

community estate, to the extent that such interest is exempt from

process under applicable nonbankruptcy law.

(b) Effect on Assertion and Manner of Determination. -

(1) Statement. - A court may order the debtor to file a

statement with regard to any claimed exemption. A copy of such

statement shall be served on counsel for the United States. Such

statement shall be under oath and shall describe each item of

property for which exemption is claimed, the value and the basis

for such valuation, and the nature of the debtor's ownership

interest.

(2) Hearing. - The United States or the debtor, by application

to the court in which an action or proceeding under this chapter

is pending, may request a hearing on the applicability of any

exemption claimed by the debtor. The court shall determine the

extent (if any) to which the exemption applies. Unless it is

reasonably evident that the exemption applies, the debtor shall

bear the burden of persuasion.

(3) Stay of Disposition. - Assertion of an exemption shall

prevent the United States from selling or otherwise disposing of

the property for which such exemption is claimed until the court

determines whether the debtor has a substantial nonexempt

interest in such property. The United States may not take

possession of, dispose of, sell, or otherwise interfere with the

debtor's normal use and enjoyment of an interest in property the

United States knows or has reason to know is exempt.

(c) Debtors in Joint Cases. - Subject to the limitation in

subsection (a), this section shall apply separately with respect to

each debtor in a joint case.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4938.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3101, 3202 of this title;

title 18 section 3613.

-End-

-CITE-

28 USC Sec. 3015 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER A - DEFINITIONS AND GENERAL PROVISIONS

-HEAD-

Sec. 3015. Discovery as to debtor's financial condition

-STATUTE-

(a) In General. - Except as provided in subsection (b), in an

action or proceeding under subchapter B or C, the United States may

have discovery regarding the financial condition of the debtor in

the manner in which discovery is authorized by the Federal Rules of

Civil Procedure in an action on a claim for a debt.

(b) Limitation. - Subsection (a) shall not apply with respect to

an action or proceeding under subchapter B unless there is a

reasonable likelihood that the debt involved exceeds $50,000.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4939.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec. (a),

are set out in the Appendix to this title.

-End-

-CITE-

28 USC SUBCHAPTER B - PREJUDGMENT REMEDIES 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

SUBCHAPTER B - PREJUDGMENT REMEDIES

-MISC1-

Sec.

3101. Prejudgment remedies.

3102. Attachment.

3103. Receivership.

3104. Garnishment.

3105. Sequestration.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 3011, 3015 of this

title.

-End-

-CITE-

28 USC Sec. 3101 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

Sec. 3101. Prejudgment remedies

-STATUTE-

(a) Application. - (1) The United States may, in a proceeding in

conjunction with the complaint or at any time after the filing of a

civil action on a claim for a debt, make application under oath to

a court to issue any prejudgment remedy.

(2) Such application shall be filed with the court and shall set

forth the factual and legal basis for each prejudgment remedy

sought.

(3) Such application shall -

(A) state that the debtor against whom the prejudgment remedy

is sought shall be afforded an opportunity for a hearing; and

(B) set forth with particularity that all statutory

requirements under this chapter for the issuance of the

prejudgment remedy sought have been satisfied.

(b) Grounds. - Subject to section 3102, 3103, 3104, or 3105, a

prejudgment remedy may be granted by any court if the United States

shows reasonable cause to believe that -

(1) the debtor -

(A) is about to leave the jurisdiction of the United States

with the effect of hindering, delaying, or defrauding the

United States in its effort to recover a debt;

(B) has or is about to assign, dispose, remove, conceal, ill

treat, waste, or destroy property with the effect of hindering,

delaying, or defrauding the United States;

(C) has or is about to convert the debtor's property into

money, securities, or evidence of debt in a manner prejudicial

to the United States with the effect of hindering, delaying, or

defrauding the United States; or

(D) has evaded service of process by concealing himself or

has temporarily withdrawn from the jurisdiction of the United

States with the effect of hindering, delaying, or defrauding

the United States; or

(2) a prejudgment remedy is required to obtain jurisdiction

within the United States and the prejudgment remedy sought will

result in obtaining such jurisdiction.

(c) Affidavit. - (1) The application under subsection (a) shall

include an affidavit establishing with particularity to the court's

satisfaction facts supporting the probable validity of the claim

for a debt and the right of the United States to recover what is

demanded in the application.

(2) The affidavit shall state -

(A) specifically the amount of the debt claimed by the United

States and any interest or costs attributable to such debt;

(B) one or more of the grounds specified in subsection (b); and

(C) the requirements of section 3102(b), 3103(a), 3104(a), or

3105(b), as the case may be.

(3) No bond is required of the United States.

(d) Notice and Hearing. - (1) On filing an application by the

United States as provided in this section, the counsel for the

United States shall prepare, and the clerk shall issue, a notice

for service on the debtor against whom the prejudgment remedy is

sought and on any other person whom the United States reasonably

believes, after exercising due diligence, has possession, custody,

or control of property affected by such remedy. Three copies of the

notice shall be served on each such person. The form and content of

such notice shall be approved jointly by a majority of the chief

judges of the Federal districts in the State in which the court is

located and shall be in substantially the following form:

"NOTICE

"You are hereby notified that this [property] is being taken by

the United States Government ('the Government'), which says that

[name of debtor] owes it a debt of $ [amount] for [reason for debt]

and has filed a lawsuit to collect this debt. The Government says

it must take this property at this time because [recite the

pertinent ground or grounds from section 3101(b)]. The Government

wants to make sure [name of debtor] will pay if the court

determines that this money is owed.

"In addition, you are hereby notified that there are exemptions

under the law which may protect some of this property from being

taken by the Government if [name of debtor] can show that the

exemptions apply. Below is a summary of the major exemptions which

apply in most situations in the State of [State where property is

located]:

"[A statement summarizing in plain and understandable English

the election available with respect to such State under section

3014 and the types of property that may be exempted under each of

the alternatives specified in paragraphs (1) and (2) of section

3014(a), and a statement that different property may be so

exempted with respect to the State in which the debtor resides.]

"If you are [name of debtor] and you disagree with the reason the

Government gives for taking your property now, or if you think you

do not owe the money to the Government that it says you do, or if

you think the property the Government is taking qualifies under one

of the above exemptions, you have a right to ask the court to

return your property to you.

"If you want a hearing, you must promptly notify the court. You

must make your request in writing, and either mail it or deliver it

in person to the clerk of the court at [address]. If you wish, you

may use this notice to request the hearing by checking the box

below and mailing this notice to the court clerk. You must also

send a copy of your request to the Government at [address], so the

Government will know you want a hearing. The hearing will take

place within 5 days after the clerk receives your request, if you

ask for it to take place that quickly, or as soon after that as

possible.

"At the hearing you may explain to the judge why you think you do

not owe the money to the Government, why you disagree with the

reason the Government says it must take your property at this time,

or why you believe the property the Government has taken is exempt

or belongs to someone else. You may make any or all of these

explanations as you see fit.

"If you think you live outside the Federal judicial district in

which the court is located, you may request, not later than 20 days

after you receive this notice, that this proceeding to take your

property be transferred by the court to the Federal judicial

district in which you reside. You must make your request in

writing, and either mail it or deliver it in person to the clerk of

the court at [address]. You must also send a copy of your request

to the Government at [address], so the Government will know you

want the proceeding to be transferred.

"Be sure to keep a copy of this notice for your own records. If

you have any questions about your rights or about this procedure,

you should contact a lawyer, an office of public legal assistance,

or the clerk of the court. The clerk is not permitted to give legal

advice, but can refer you to other sources of information."

(2) By requesting, at any time before judgment on the claim for a

debt, the court to hold a hearing, the debtor may move to quash the

order granting such remedy. The court shall hold a hearing on such

motion as soon as practicable, or, if requested by the debtor,

within 5 days after receiving the request for a hearing or as soon

thereafter as possible. The issues at such hearing shall be limited

to -

(A) the probable validity of the claim for the debt for which

such remedy was granted and of any defense or claim of exemption

asserted by such person;

(B) compliance with any statutory requirement for the issuance

of the prejudgment remedy granted;

(C) the existence of any ground set forth in subsection (b);

and

(D) the inadequacy of alternative remedies (if any) to protect

the interests of the United States.

(e) Issuance of Writ. - On the court's determination that the

requirements of subsections (a), (b), and (c) have been met, the

court shall issue all process sufficient to put into effect the

prejudgment remedy sought.

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4939.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3004, 3102, 3103, 3104,

3105 of this title.

-End-

-CITE-

28 USC Sec. 3102 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

Sec. 3102. Attachment

-STATUTE-

(a) Property Subject to Attachment. - (1) Any property in the

possession, custody, or control of the debtor and in which the

debtor has a substantial nonexempt interest, except earnings, may

be attached pursuant to a writ of attachment in an action or

proceeding against a debtor on a claim for a debt and may be held

as security to satisfy such judgment, and interest and costs, as

the United States may recover on such claim.

(2) The value of property attached shall not exceed the amount by

which the sum of the amount of the debt claimed by the United

States and the amount of interest and costs reasonably likely to be

assessed against the debtor by the court exceeds the aggregate

value of the nonexempt interest of the debtor in any -

(A) property securing the debt; and

(B) property garnished or in receivership, or income

sequestered, under this subchapter.

(b) Availability of Attachment. - If the requirements of section

3101 are satisfied, a court shall issue a writ authorizing the

United States to attach property in which the debtor has a

substantial nonexempt interest, as security for such judgment (and

interest and costs) as the United States may recover on a claim for

a debt -

(1) in an action on a contract, express or implied, against the

debtor for payment of money, only if the United States shows

reasonable cause to believe that -

(A) the contract is not fully secured by real or personal

property; or

(B) the value of the original security is substantially

diminished, without any act of the United States or the person

to whom the security was given, below the amount of the debt;

(2) in an action against the debtor for damages in tort;

(3) if the debtor resides outside the jurisdiction of the

United States; or

(4) in an action to recover a fine, penalty, or tax.

(c) Issuance of Writ; Contents. - (1) Subject to subsections (a)

and (b), a writ of attachment shall be issued by the court

directing the United States marshal of the district where property

described in subsection (a) is located to attach the property.

(2) Several writs of attachment may be issued at the same time,

or in succession, and sent to different judicial districts until

sufficient property is attached.

(3) The writ of attachment shall contain -

(A) the date of the issuance of the writ;

(B) the identity of the court, the docket number of the action,

and the identity of the cause of action;

(C) the name and last known address of the debtor;

(D) the amount to be secured by the attachment; and

(E) a reasonable description of the property to be attached.

(d) Levy of Attachment. - (1) The United States marshal receiving

the writ shall proceed without delay to levy upon the property

specified for attachment if found within the district. The marshal

may not sell property unless ordered by the court.

(2) In performing the levy, the United States marshal may enter

any property owned, occupied, or controlled by the debtor, except

that the marshal may not enter a residence or other building unless

the writ expressly authorizes the marshal to do so or upon specific

order of the court.

(3) Levy on real property is made by entering the property and

posting the writ and notice of levy in a conspicuous place upon the

property.

(4) Levy on personal property is made by taking possession of it.

Levy on personal property not easily taken into possession or which

cannot be taken into possession without great inconvenience or

expense may be made by affixing a copy of the writ and notice of

levy on it or in a conspicuous place in the vicinity of it

describing in the notice of levy the property by quantity and with

sufficient detail to identify the property levied on.

(5) The United States marshal shall file a copy of the notice of

levy in the same manner as provided for judgments in section

3201(a)(1). The United States marshal shall serve a copy of the

writ and notice of levy on -

(A) the debtor against whom the writ is issued; and

(B) the person who has possession of the property subject to

the writ;

in the same manner that a summons is served in a civil action and

make the return thereof.

(e) Return of Writ; Duties of Marshal; Further Return. - (1) A

United States marshal executing a writ of attachment shall return

the writ with the marshal's action endorsed thereon or attached

thereto and signed by the marshal, to the court from which it was

issued, within 5 days after the date of the levy.

(2) The return shall describe the property attached with

sufficient certainty to identify it and shall state the location

where it was attached, the date and time it was attached, and the

disposition made of the property. If no property was attached, the

return shall so state.

(3) If the property levied on is claimed, replevied under

subsection (j)(2), or sold under section 3007 after the return, the

United States marshal shall immediately make a further return to

the clerk of the court showing the disposition of the property.

(4) If personal property is replevied, the United States marshal

shall deliver the replevin bond to the clerk of the court to be

filed in the action.

(f) Levy of Attachment as Lien on Property; Satisfaction of Lien.

- (1) A levy on property under a writ of attachment under this

section creates a lien in favor of the United States on the

property or, in the case of perishable property sold under section

3007, on the proceeds of the sale.

(2) Such lien shall be ranked ahead of any other security

interests perfected after the later of the time of levy and the

time a copy of the notice of levy is filed under subsection (d)(5).

(3) Such lien shall arise from the time of levy and shall

continue until a judgment in the action is obtained or denied, or

the action is otherwise dismissed. The death of the debtor whose

property is attached does not terminate the attachment lien. Upon

issuance of a judgment in the action and registration under this

chapter, the judgment lien so created relates back to the time of

levy.

(g) Reduction or Dissolution of Attachment. - (1) If an excessive

or unreasonable attachment is made, the debtor may submit a motion

to the court for a reduction of the amount of the attachment or its

dissolution. Notice of such motion shall be served on the United

States.

(2) The court shall order a part of the property to be released,

if after a hearing the court finds that the amount of the

attachment is excessive or unreasonable or if the attachment is for

an amount larger than the sum of the liquidated or ascertainable

amount of the debt and the amount of interest and costs likely to

be taxed.

(3) The court shall dissolve the attachment if the amount of the

debt is unliquidated and unascertainable by calculation.

(4) If any property claimed to be exempt is levied on, the debtor

may, at any time after such levy, request that the court vacate

such levy. If it appears to the court that the property so levied

upon is exempt, the court shall order the levy vacated and the

property returned to the debtor.

(h) Replevin of Attached Property by Debtor; Bond. - If attached

property is not sold before judgment, the debtor may replevy such

property or any part thereof by giving a bond approved by counsel

for the United States or the court and payable to the United States

in double the reasonable value of the property to be replevied or

double the value of the claim, whichever is less.

(i) Preservation of Personal Property Under Attachment. - If

personal property in custody of the United States marshal under a

writ of attachment is not replevied, claimed, or sold, the court

may make such order for its preservation or use as appears to be in

the interest of the parties.

(j) Judgment and Disposition of Attached Property. -

(1) Judgment for the united states. - On entry of judgment for

the United States, the court shall order the proceeds of personal

property sold pursuant to section 3007 to be applied to the

satisfaction of the judgment, and shall order the sale of any

remaining personal property and any real property levied on to

the extent necessary to satisfy the judgment.

(2) Judgment for the united states when personal property

replevied. - With respect to personal property under attachment

that is replevied, the judgment which may be entered shall be

against the debtor against whom the writ of attachment is issued

and also against the sureties on the debtor's replevin bond for

the value of the property.

(3) Restoration of property and exoneration of replevin bond. -

If the attachment is vacated or if the judgment on the claim for

the debt is for the person against whom the writ attachment is

issued, the court shall order the property, or proceeds of

perishable property sold under section 3007, restored to the

debtor and shall exonerate any replevin bond.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4942.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3101, 3203 of this title.

-End-

-CITE-

28 USC Sec. 3103 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

Sec. 3103. Receivership

-STATUTE-

(a) Appointment of a Receiver. - If the requirements of section

3101 are satisfied, a court may appoint a receiver for property in

which the debtor has a substantial nonexempt interest if the United

States shows reasonable cause to believe that there is a

substantial danger that the property will be removed from the

jurisdiction of the court, lost, concealed, materially injured or

damaged, or mismanaged.

(b) Powers of Receiver. - (1) The appointing court may authorize

a receiver -

(A) to take possession of real and personal property and sue

for, collect, and sell obligations upon such conditions and for

such purposes as the court shall direct; and

(B) to administer, collect, improve, lease, repair or sell

pursuant to section 3007 such real and personal property as the

court shall direct.

A receiver appointed to manage residential or commercial property

shall have demonstrable expertise in the management of these types

of property.

(2) Unless expressly authorized by order of the court, a receiver

shall have no power to employ attorneys, accountants, appraisers,

auctioneers, or other professional persons.

(c) Duration of Receivership. - A receivership shall not continue

past the entry of judgment, or the conclusion of an appeal of such

judgment, unless the court orders it continued under section

3203(e) or unless the court otherwise directs its continuation.

(d) Accounts; Requirement to Report. - A receiver shall keep

written accounts itemizing receipts and expenditures, describing

the property and naming the depository of receivership funds. The

receiver's accounts shall be open to inspection by any person

having an apparent interest in the property. The receiver shall

file reports at regular intervals as directed by the court and

shall serve the debtor and the United States with a copy thereof.

(e) Modification of Powers; Removal. - On motion of the receiver

or on its own initiative, the court which appointed the receiver

may remove the receiver or modify the receiver's powers at any

time.

(f) Priority. - If more than one court appoints a receiver for

particular property, the receiver first qualifying under law shall

be entitled to take possession, control, or custody of the

property.

(g) Compensation of Receivers. - (1) A receiver is entitled to

such commissions, not exceeding 5 percent of the sums received and

disbursed by him, as the court allows unless the court otherwise

directs.

(2) If, at the termination of a receivership, there are no funds

in the hands of a receiver, the court may fix the compensation of

the receiver in accordance with the services rendered and may

direct the party who moved for the appointment of the receiver to

pay such compensation in addition to the necessary expenditures

incurred by the receiver which remain unpaid.

(3) At the termination of a receivership, the receiver shall file

a final accounting of the receipts and disbursements and apply for

compensation setting forth the amount sought and the services

rendered by the receiver.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4944.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3101 of this title.

-End-

-CITE-

28 USC Sec. 3104 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

Sec. 3104. Garnishment

-STATUTE-

(a) In General. - If the requirements of section 3101 are

satisfied, a court may issue a writ of garnishment against property

(excluding earnings) in which the debtor has a substantial

nonexempt interest and which is in the possession, custody, or

control of a person other than the debtor in order to satisfy a

claim for a debt. Co-owned property shall be subject to garnishment

to the same extent as co-owned property is subject to garnishment

under the law of the State in which such property is located. A

court may issue simultaneous separate writs of garnishment to

several garnishees. A writ of garnishment issued under this

subsection shall be continuing and shall terminate only as provided

in section 3205(c)(10).

(b) Writ. - (1) Subsections (b)(2) and (c) of section 3205 shall

apply with respect to garnishment under this section, except that

for purposes of this section -

(A) earnings of the debtor shall not be subject to garnishment;

and

(B) a reference in such subsections to a judgment debtor shall

be deemed to be a reference to a debtor.

(2) The United States shall include in its application for a writ

of garnishment -

(A) the amount of the claim asserted by the United States for a

debt; and

(B) the date the writ is issued.

(c) Limitation. - The value of property garnished shall not

exceed the amount by which the sum of the amount of the debt

claimed by the United States and the amount of interest and costs

reasonably likely to be assessed against the debtor by the court

exceeds the aggregate value of the nonexempt interest of the debtor

in any -

(1) property securing the debt; and

(2) property attached or in receivership, or income

sequestered, under this subchapter.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4945.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3002, 3101 of this title.

-End-

-CITE-

28 USC Sec. 3105 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER B - PREJUDGMENT REMEDIES

-HEAD-

Sec. 3105. Sequestration

-STATUTE-

(a) Property Subject to Sequestration. - (1) Any income from

property in which the debtor has a substantial nonexempt interest

may be sequestered pursuant to a writ of sequestration in an action

or proceeding against a debtor on a claim for a debt and may be

held as security to satisfy such judgment, and interest and costs,

as the United States may recover on such claim.

(2) The amount of income sequestered shall not exceed the amount

by which the sum of the amount of the debt claimed by the United

States and the amount of interest and costs reasonably likely to be

assessed against the debtor by the court exceeds the aggregate

value of the nonexempt interest of the debtor in any -

(A) property securing the debt; and

(B) property attached, garnished, or in receivership under this

subchapter.

(b) Availability of Sequestration. - If the requirements of

section 3101 are satisfied, a court shall issue a writ authorizing

the United States to sequester income from property in which the

debtor has a substantial nonexempt interest, as security for such

judgment (and interest and costs) as the United States may recover

on a claim for a debt -

(1) in an action on a contract, express or implied, against the

debtor for payment of money, only if the United States shows

reasonable cause to believe that -

(A) the contract is not fully secured by real or personal

property; or

(B) the value of the original security is substantially

diminished, without any act of the United States or the person

to whom the security was given, below the amount of the debt;

(2) in an action against the debtor for damages in tort;

(3) if the debtor resides outside the jurisdiction of the

United States; or

(4) in an action to recover a fine, penalty, or tax.

(c) Issuance of Writ; Contents. - (1) Subject to subsections (a)

and (b), a writ of sequestration shall be issued by the court

directing the United States marshal of the district where income

described in subsection (a) is located to sequester the income.

(2) Several writs of sequestration may be issued at the same

time, or in succession, and sent to different judicial districts

until sufficient income is sequestered.

(3) The writ of sequestration shall contain -

(A) the date of the issuance of the writ;

(B) the identity of the court, the docket number of the action,

and the identity of the cause of action;

(C) the name and last known address of the debtor;

(D) the amount to be secured by the sequestration; and

(E) a reasonable description of the income to be sequestered.

(d) Execution of Writ. - (1) The United States marshal receiving

the writ shall proceed without delay to execute the writ.

(2) The United States marshal shall file a copy of the notice of

sequestration in the same manner as provided for judgments in

section 3201(a)(1). The United States marshal shall serve a copy of

the writ and notice of sequestration on -

(A) the debtor against whom the writ is issued; and

(B) the person who has possession of the income subject to the

writ;

in the same manner that a summons is served in a civil action and

make the return thereof.

(e) Deposit of Sequestered Income. - A person who has possession

of the income subject to a writ of sequestration shall deposit such

income with the clerk of the court, accompanied by a statement in

writing stating the person's name, the name of the debtor, the

amount of such income, the property from which such income is

produced, and the period during which such income is produced.

(f) Return of Writ; Duties of Marshal; Further Return. - (1) A

United States marshal executing a writ of sequestration shall

return the writ with the marshal's action endorsed thereon or

attached thereto and signed by the marshal, to the court from which

it was issued, within 5 days after the date of the execution.

(2) The return shall describe the income sequestered with

sufficient certainty to identify it and shall state the location

where it was sequestered, and the date and time it was sequestered.

If no income was sequestered, the return shall so state.

(3) If sequestered income is claimed after the return, the United

States marshal shall immediately make a further return to the clerk

of the court showing the disposition of the income.

(g) Reduction or Dissolution of Sequestration. - (1) If an

excessive or unreasonable sequestration is made, the debtor may

submit a motion to the court for a reduction of the amount of the

sequestration or its dissolution. Notice of such motion shall be

served on the United States.

(2) The court shall order a part of the income to be released, if

after a hearing the court finds that the amount of the

sequestration is excessive or unreasonable or if the sequestration

is for an amount larger than the sum of the liquidated or

ascertainable amount of the debt and the amount of interest and

costs likely to be taxed.

(3) The court shall dissolve the sequestration if the amount of

the debt is unliquidated and unascertainable by calculation.

(h) Preservation of Income Under Sequester. - If personal

property in custody of the United States marshal under a writ of

sequestration is not claimed, the court may make such order for its

preservation or use as appears to be in the interest of the

parties.

(i) Judgment and Disposition of Sequestered Income. -

(1) Judgment for the united states. - On entry of judgment for

the United States, the court shall order the sequestered income

to be applied to the satisfaction of the judgment.

(2) Restoration of income. - If the sequestration is vacated or

if the judgment on the claim for the debt is for the person

against whom the writ of sequestration is issued, the court shall

order the income restored to the debtor.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4946.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3101 of this title.

-End-

-CITE-

28 USC SUBCHAPTER C - POSTJUDGMENT REMEDIES 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-MISC1-

Sec.

3201. Judgment liens.

3202. Enforcement of judgments.

3203. Execution.

3204. Installment payment order.

3205. Garnishment.

3206. Discharge.

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 3011, 3015 of this

title.

-End-

-CITE-

28 USC Sec. 3201 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3201. Judgment liens

-STATUTE-

(a) Creation. - A judgment in a civil action shall create a lien

on all real property of a judgment debtor on filing a certified

copy of the abstract of the judgment in the manner in which a

notice of tax lien would be filed under paragraphs (1) and (2) of

section 6323(f) of the Internal Revenue Code of 1986. A lien

created under this paragraph is for the amount necessary to satisfy

the judgment, including costs and interest.

(b) Priority of Lien. - A lien created under subsection (a) shall

have priority over any other lien or encumbrance which is perfected

later in time.

(c) Duration of Lien; Renewal. - (1) Except as provided in

paragraph (2), a lien created under subsection (a) is effective,

unless satisfied, for a period of 20 years.

(2) Such lien may be renewed for one additional period of 20

years upon filing a notice of renewal in the same manner as the

judgment is filed and shall relate back to the date the judgment is

filed if -

(A) the notice of renewal is filed before the expiration of the

20-year period to prevent the expiration of the lien; and

(B) the court approves the renewal of such lien under this

paragraph.

(d) Release of Judgment Lien. - A judgment lien shall be released

on the filing of a satisfaction of judgment or release of lien in

the same manner as the judgment is filed to obtain the lien.

(e) Effect of Lien on Eligibility for Federal Grants, Loans or

Programs. - A debtor who has a judgment lien against the debtor's

property for a debt to the United States shall not be eligible to

receive any grant or loan which is made, insured, guaranteed, or

financed directly or indirectly by the United States or to receive

funds directly from the Federal Government in any program, except

funds to which the debtor is entitled as beneficiary, until the

judgment is paid in full or otherwise satisfied. The agency of the

United States that is responsible for such grants and loans may

promulgate regulations to allow for waiver of this restriction on

eligibility for such grants, loans, and funds.

(f) Sale of Property Subject to Judgment Lien. - (1) On proper

application to a court, the court may order the United States to

sell, in accordance with sections 2001 and 2002, any real property

subject to a judgment lien in effect under this section.

(2) This subsection shall not preclude the United States from

using an execution sale pursuant to section 3203(g) to sell real

property subject to a judgment lien.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4948.)

-REFTEXT-

REFERENCES IN TEXT

Section 6323(f) of the Internal Revenue Code of 1986, referred to

in subsec. (a), is classified to section 6323(f) of Title 26,

Internal Revenue Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3102, 3105 of this title;

title 8 section 1183a; title 12 section 3758; title 18 section

3613.

-End-

-CITE-

28 USC Sec. 3202 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3202. Enforcement of judgments

-STATUTE-

(a) Enforcement Remedies. - A judgment may be enforced by any of

the remedies set forth in this subchapter. A court may issue other

writs pursuant to section 1651 of title 28, United States Code, as

necessary to support such remedies, subject to rule 81(b) of the

Federal Rules of Civil Procedure.

(b) Notice. - On the commencement by the United States of an

action or proceeding under this subchapter to obtain a remedy, the

counsel for the United States shall prepare, and clerk of the court

shall issue, a notice in substantially the following form:

"NOTICE

"You are hereby notified that this [property] is being taken by

the United States Government, which has a court judgment in [case

docket number and jurisdiction of court] of $[amount] for [reason

of debt].

"In addition, you are hereby notified that there are exemptions

under the law which may protect some of this property from being

taken by the United States Government if [name of judgment debtor]

can show that the exemptions apply. Below is a summary of the major

exemptions which apply in most situations in the State of [State

where property is located]:

"[A statement summarizing in plain and understandable English

the election available with respect to such State under section

3014 and the types of property that may be exempted under each of

the alternatives specified in paragraphs (1) and (2) of section

3014(a) and a statement that different property may be so

exempted with respect to the State in which the debtor resides.]

"If you are [name of judgment debtor], you have a right to ask

the court to return your property to you if you think the property

the Government is taking qualifies under one of the above

exemptions [For a default judgment:] or if you think you do not owe

the money to the United States Government that it says you do.

"If you want a hearing, you must notify the court within 20 days

after you receive this notice. You must make your request in

writing, and either mail it or deliver it in person to the clerk of

the court at [address]. If you wish, you may use this notice to

request the hearing by checking the box below and mailing this

notice to the court clerk. You must also send a copy of your

request to the Government at [address], so the Government will know

you want a hearing. The hearing will take place within 5 days after

the clerk receives your request, if you ask for it to take place

that quickly, or as soon after that as possible.

"At the hearing you may explain to the judge why you believe the

property the Government has taken is exempt [For a default

judgment:] or why you think you do not owe the money to the

Government. [For a writ of execution:] If you do not request a

hearing within 20 days of receiving this notice, your [property]

may be sold at public auction and the payment used toward the money

you owe the Government.

"If you think you live outside the Federal judicial district in

which the court is located, you may request, not later than 20 days

after your (!1) receive this notice, that this proceeding to take

your property be transferred by the court to the Federal judicial

district in which you reside. You must make your request in

writing, and either mail it or deliver it in person to the clerk of

the court at [address]. You must also send a copy of your request

to the Government at [address], so the Government will know you

want the proceeding to be transferred.

"Be sure to keep a copy of this notice for your own records. If

you have any questions about your rights or about this procedure,

you should contact a lawyer, an office of public legal assistance,

or the clerk of the court. The clerk is not permitted to give legal

advice, but can refer you to other sources of information."

(c) Service. - A copy of the notice and a copy of the application

for granting a remedy under this subchapter shall be served by

counsel for the United States on the judgment debtor against whom

such remedy is sought and on each person whom the United States,

after diligent inquiry, has reasonable cause to believe has an

interest in property to which the remedy is directed.

(d) Hearing. - By requesting, within 20 days after receiving the

notice described in section 3202(b), the court to hold a hearing,

the judgment debtor may move to quash the order granting such

remedy. The court that issued such order shall hold a hearing on

such motion as soon as practicable, or, if so requested by the

judgment debtor, within 5 days after receiving the request or as

soon thereafter as possible. The issues at such hearing shall be

limited -

(1) to the probable validity of any claim of exemption by the

judgment debtor;

(2) to compliance with any statutory requirement for the

issuance of the postjudgment remedy granted; and

(3) if the judgment is by default and only to the extent that

the Constitution or another law of the United States provides a

right to a hearing on the issue, to -

(A) the probable validity of the claim for the debt which is

merged in the judgment; and

(B) the existence of good cause for setting aside such

judgment.

This subparagraph shall not be construed to afford the judgment

debtor the right to more than one such hearing except to the

extent that the Constitution or another law of the United States

provides a right to more than one such hearing.

(e) Sale of Property. - The property of a judgment debtor which

is subject to sale to satisfy the judgment may be sold by judicial

sale, pursuant to sections 2001, 2002, and 2004 or by execution

sale pursuant to section 3203(g). If a hearing is requested

pursuant to subsection (d), property with respect to which the

request relates shall not be sold before such hearing.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4949.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec. (a),

are set out in the Appendix to this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3004 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "you".

-End-

-CITE-

28 USC Sec. 3203 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3203. Execution

-STATUTE-

(a) Property Subject to Execution. - All property in which the

judgment debtor has a substantial nonexempt interest shall be

subject to levy pursuant to a writ of execution. The debtor's

earnings shall not be subject to execution while in the possession,

custody, or control of the debtor's employer. Co-owned property

shall be subject to execution to the extent such property is

subject to execution under the law of the State in which it is

located.

(b) Creation of Execution Lien. - A lien shall be created in

favor of the United States on all property levied on under a writ

of execution and shall date from the time of the levy. Such lien

shall have priority over all subsequent liens and shall be for the

aggregate amount of the judgment, costs, and interest. The

execution lien on any real property as to which the United States

has a judgment lien shall relate back to the judgment lien date.

(c) Writ of Execution. -

(1) Issuance. - On written application of counsel for the

United States, the court may issue a writ of execution. Multiple

writs may issue simultaneously, and successive writs may issue

before the return date of a writ previously issued.

(2) Form of writ. -

(A) General contents. - A writ of execution shall specify the

date that the judgment is entered, the court in which it is

entered, the amount of the judgment if for money, the amount of

the costs, the amount of interest due, the sum due as of the

date the writ is issued, the rate of postjudgment interest, the

name of the judgment debtor, and the judgment debtor's last

known address.

(B) Additional contents. - (i) Except as provided in clauses

(ii) and (iii), the writ shall direct the United States marshal

to satisfy the judgment by levying on and selling property in

which the judgment debtor has a substantial nonexempt interest,

but not to exceed property reasonably equivalent in value to

the aggregate amount of the judgment, costs, and interest.

(ii) A writ of execution issued on a judgment for the

delivery to the United States of the possession of personal

property, or for the delivery of the possession of real

property, shall particularly describe the property, and shall

require the marshal to deliver the possession of the property

to the United States.

(iii) A writ of execution on a judgment for the recovery of

personal property or its value shall direct the marshal, in

case a delivery of the specific property cannot be had, to levy

and collect such value out of any property in which the

judgment debtor has a substantial nonexempt interest.

(d) Levy of Execution. -

(1) In general. - Levy on property pursuant to a writ of

execution issued under this section shall be made in the same

manner as levy on property is made pursuant to a writ of

attachment issued under section 3102(d).

(2) Death of judgment debtor. - The death of the judgment

debtor after a writ of execution is issued stays the execution

proceedings, but any lien acquired by levy of the writ shall be

recognized and enforced by the court for the district in which

the estate of the deceased is located. The execution lien may be

enforced -

(A) against the executor, administrator, or personal

representative of the estate of the deceased; or

(B) if there be none, against the deceased's property coming

to the heirs or devisees or at their option against cash in

their possession, but only to the extent of the value of the

property coming to them.

(3) Records of united states marshal. - (A) A United States

marshal receiving a writ of execution shall endorse thereon the

exact hour and date of receipt.

(B) The United States marshal shall make a written record of

every levy, specify the property on which levy is made, the date

on which levy is made, and the marshal's costs, expenses, and

fees.

(C) The United States marshal shall make a written return to

the court on each writ of execution stating concisely what is

done pursuant to the writ and shall deliver a copy to counsel for

the United States who requests the writ. The writ shall be

returned not more than -

(i) 90 days after the date of issuance if levy is not made;

or

(ii) 10 days after the date of sale of property on which levy

is made.

(e) Appointment of Receiver. - Pending the levy of execution, the

court may appoint a receiver to manage property described in such

writ if there is a substantial danger that the property will be

removed from the jurisdiction of the court, lost, materially

injured or damaged, or mismanaged.

(f) Replevy; Redemption. -

(1) Before execution sale. - (A) Before execution sale, the

United States marshal may return property (!1) to the judgment

debtor any personal property taken in execution, on -

(i) satisfaction of the judgment, interest, and costs, and

any costs incurred in connection with scheduling the sale; or

(ii) receipt from the judgment debtor of a bond -

(I) payable to the United States, with 2 or more good and

sufficient sureties to be approved by the marshal,

conditioned on the delivery of the property to the marshal at

the time and place named in the bond to be sold under

subsection (g); or

(II) for the payment to the marshal of a fair value thereof

which shall be stated in the bond.

(B) A judgment debtor who sells or disposes of property

replevied under subparagraph (A) shall pay the United States

marshal the stipulated value of such property.

(C) If the judgment debtor fails to deliver such property to

the United States marshal pursuant to the terms of the delivery

described in subparagraph (A)(ii)(I) and fails to pay the United

States marshal the stipulated value of such property, the United

States marshal shall endorse the bond "forfeited" and return it

to the court from which the writ of execution issued. If the

judgment is not fully satisfied, the court shall issue a writ of

execution against the judgment debtor and the sureties on the

bond for the amount due, not exceeding the stipulated value of

the property, on which execution no delivery bond shall be taken,

which instruction shall be endorsed on the writ.

(2) After execution sale. - The judgment debtor shall not be

entitled to redeem the property after the execution sale.

(g) Execution Sale. -

(1) General procedures. - An execution sale under this section

shall be conducted in a commercially reasonable manner -

(A) Sale of real property. -

(i) In general. - (I) Except as provided in clause (ii),

real property, or any interest therein, shall be sold, after

the expiration of the 90-day period beginning on the date of

levy under subsection (d), for cash at public auction at the

courthouse of the county, parish, or city in which the

greater part of the property is located or on the premises or

some parcel thereof.

(II) The court may order the sale of any real property

after the expiration of the 30-day period beginning on the

date of levy under subsection (d) if the court determines

that such property is likely to perish, waste, be destroyed,

or otherwise substantially depreciate in value during the

90-day period beginning on the date of levy.

(III) The time and place of sale of real property, or any

interest therein, under execution shall be advertised by the

United States marshal, by publication of notice, once a week

for at least 3 weeks prior to the sale, in at least one

newspaper of general circulation in the county or parish

where the property is located. The first publication shall

appear not less than 25 days preceding the day of sale. The

notice shall contain a statement of the authority by which

the sale is to be made, the time of levy, the time and place

of sale, and a brief description of the property to be sold,

sufficient to identify the property (such as a street address

for urban property and the survey identification and location

for rural property), but it shall not be necessary for the

notice to contain field notes. Such property shall be open

for inspection and appraisal, subject to the judgment

debtor's reasonable objections, for a reasonable period

before the day of sale.

(IV) The United States marshal shall serve written notice

of public sale by personal delivery, or certified or

registered mail, to each person whom the marshal has

reasonable cause to believe, after a title search is

conducted by the United States, has an interest in property

under execution, including lienholders, co-owners, and

tenants, at least 25 days before the day of sale, to the last

known address of each such person.

(ii) Sale of city lots. - If the real property consists of

several lots, tracts, or parcels in a city or town, each lot,

tract, or parcel shall be offered for sale separately, unless

not susceptible to separate sale because of the character of

improvements.

(iii) Sale of rural property. - If the real property is not

located in a city or town, the judgment debtor may -

(I) divide the property into lots of not less than 50

acres or in such greater or lesser amounts as ordered by

the court;

(II) furnish a survey of such prepared by a registered

surveyor; and

(III) designate the order in which those lots shall be

sold.

When a sufficient number of lots are sold to satisfy the

amount of the execution and costs of sale, the marshal shall

stop the sale.

(B) Sale of personal property. - (i) Personal property levied

on shall be offered for sale on the premises where it is

located at the time of levy, at the courthouse of the county,

parish or city wherein it is located, or at another location if

ordered by the court. Personal property susceptible of being

exhibited shall not be sold unless it is present and subject to

the view of those attending the sale unless -

(I) the property consists of shares of stock in

corporations;

(II) by reason of the nature of the property, it is

impractical to exhibit it; or

(III) the debtor's interest in the property does not

include the right to the exclusive possession.

(ii)(I) Except as provided in subclause (II), personal

property, or any interest therein, shall be sold after the

expiration of the 30-day period beginning on the date of levy

under subsection (d).

(II) The court may order the sale of any personal property

before the expiration of such 30-day period if the court

determines that such property is likely to perish, waste, be

destroyed, or otherwise substantially depreciate in value

during such 30-day period.

(iii) Notice of the time and place of the sale of personal

property shall be given by the United States marshal by posting

notice thereof for not less than 10 days successively

immediately before the day of sale at the courthouse of any

county, parish, or city, and at the place where the sale is to

be made.

(iv) The United States marshal shall serve written notice of

public sale by personal delivery, or registered or certified

mail at their last known addresses, on the judgment debtor and

other persons who the marshal has reasonable cause to believe,

after diligent inquiry, have a substantial interest in the

property.

(2) Postponement of sale. - The United States marshal may

postpone an execution sale from time to time by continuing the

required posting or publication of notice until the date to which

the sale is postponed, and appending, at the foot of each such

notice of a current copy of the following:

"The above sale is postponed until the day of ,

19 , at o'clock .M., , United States Marshal for

the District of , by , Deputy, dated

."

(3) Sale procedures. -

(A) Bidding requirements. - A bidder at an execution sale of

property, may be required by the United States marshal to make

a cash deposit of as much as 20 percent of the sale price

proposed before the bid is accepted.

(B) Resale of property. - If the terms of the sale are not

complied with by the successful bidder, the United States

marshal shall proceed to sell the property again on the same

day if there is sufficient time. If there is insufficient time,

the marshal shall schedule and notice a subsequent sale of the

property as provided in paragraphs (1) and (2).

(4) Rights and liabilities of purchasers. -

(A) Transfer of title after sale. -

(i) If property is sold under this subsection and the

successful bidder complies with the terms of the sale, the

United States marshal shall execute and deliver all documents

necessary to transfer to the successful bidder, without

warranty, all the rights, titles, interests, and claims of

the judgment debtor in the property.

(ii) If the successful bidder dies before execution and

delivery of the documents needed to transfer ownership, the

United States marshal shall execute and deliver them to the

successful bidder's estate. Such delivery to the estate shall

have the same effect as if accomplished during the lifetime

of the purchaser.

(B) Purchaser considered innocent purchaser without notice. -

The purchaser of property sold under execution shall be deemed

to be an innocent purchaser without notice if the purchaser

would have been considered an innocent purchaser without notice

had the sale been made voluntarily and in person by the

judgment debtor.

(C) Liability of successful bidder who fails to comply. - A

successful bidder at an execution sale who fails to comply with

the terms of the sale shall forfeit to the United States the

cash deposit or, at the election of the United States, shall be

liable to the United States, on a subsequent sale of the

property, for all net losses incurred by the United States as a

result of such failure.

(h) Disposition of Proceeds; Further Levy. -

(1) Distribution of sale proceeds. - (A) The United States

marshal shall first deliver to the judgment debtor such amounts

to which the judgment debtor is entitled from the sale of

partially exempt property.

(B) The United States marshal shall next deduct from the

proceeds of an execution sale of property an amount equal to the

reasonable expenses incurred in making the levy of execution and

in keeping and maintaining the property.

(C) Except as provided in subparagraph (D), the United States

marshal shall deliver the balance of the proceeds to the counsel

for the United States as soon as practicable.

(D) If more proceeds are received from the execution sale than

is necessary to satisfy the executions held by the United States

marshal, the marshal shall pay the surplus to the judgment

debtor.

(2) Further levy if execution not satisfied. - If the proceeds

of the execution sale of the property levied on are insufficient

to satisfy the execution, the United States marshal shall proceed

on the same writ of execution to levy other property of the

judgment debtor.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4950.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3103, 3201, 3202 of this

title; title 8 section 1183a.

-FOOTNOTE-

(!1) So in original. The word "property" probably should not appear.

-End-

-CITE-

28 USC Sec. 3204 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3204. Installment payment order

-STATUTE-

(a) Authority To Issue Order. - Subject to subsection (c), if it

is shown that the judgment debtor -

(1) is receiving or will receive substantial nonexempt

disposable earnings from self employment that are not subject to

garnishment; or

(2) is diverting or concealing substantial earnings from any

source, or property received in lieu of earnings;

then upon motion of the United States and notice to the judgment

debtor, the court may, if appropriate, order that the judgment

debtor make specified installment payments to the United States.

Notice of the motion shall be served on the judgment debtor in the

same manner as a summons or by registered or certified mail, return

receipt requested. In fixing the amount of the payments, the court

shall take into consideration after a hearing, the income,

resources, and reasonable requirements of the judgment debtor and

the judgment debtor's dependents, any other payments to be made in

satisfaction of judgments against the judgment debtor, and the

amount due on the judgment in favor of the United States.

(b) Modification of Order. - On motion of the United States or

the judgment debtor, and upon a showing that the judgment debtor's

financial circumstances have changed or that assets not previously

disclosed by the judgment debtor have been discovered, the court

may modify the amount of payments, alter their frequency, or

require full payment.

(c) Limitation. - (1) An order may not be issued under subsection

(a), and if so issued shall have no force or effect, against a

judgment debtor with respect to whom there is in effect a writ of

garnishment of earnings issued under this chapter and based on the

same debt.

(2) An order may not be issued under subsection (a) with respect

to any earnings of the debtor except nonexempt disposable earnings.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4955.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 8 section 1183a.

-End-

-CITE-

28 USC Sec. 3205 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3205. Garnishment

-STATUTE-

(a) In General. - A court may issue a writ of garnishment against

property (including nonexempt disposable earnings) in which the

debtor has a substantial nonexempt interest and which is in the

possession, custody, or control of a person other than the debtor,

in order to satisfy the judgment against the debtor. Co-owned

property shall be subject to garnishment to the same extent as

co-owned property is subject to garnishment under the law of the

State in which such property is located. A court may issue

simultaneous separate writs of garnishment to several garnishees. A

writ of garnishment issued under this subsection shall be

continuing and shall terminate only as provided in subsection

(c)(10).

(b) Writ. -

(1) General requirements. - The United States shall include in

its application for a writ of garnishment -

(A) the judgment debtor's name, social security number (if

known), and last known address;

(B) the nature and amount of the debt owed and the facts that

not less than 30 days has elapsed since demand on the debtor

for payment of the debt was made and the judgment debtor has

not paid the amount due; and

(C) that the garnishee is believed to have possession of

property (including nonexempt disposable earnings) in which the

debtor has a substantial nonexempt interest.

(2) Proper garnishee for particular property. -

(A) If the property consists of a right to or share in the

stock of an association or corporation, or interests or profits

therein, for which a certificate of stock or other negotiable

instrument is not outstanding, the corporation, or the

president or treasurer of the association shall be the

garnishee.

(B) If the property consists of an interest in a partnership

interest, any partner other than the debtor shall be the

garnishee on behalf of the partnership.

(C) If the property or a debt is evidenced by a negotiable

instrument for the payment of money, a negotiable document of

title or a certificate of stock of an association or

corporation, the instrument, document, or certificate shall be

treated as property capable of delivery and the person holding

it shall be the garnishee, except that -

(i) subject to clause (ii), in the case of a security which

is transferable in the manner set forth in State law, the

entity that carries on its books an account in the name of

the debtor in which is reflected such security shall be the

garnishee; and

(ii) notwithstanding clause (i), the pledgee shall be the

garnishee if such security is pledged.

(c) Procedures Applicable to Writ. -

(1) Court determination. - If the court determines that the

requirements of this section are satisfied, the court shall issue

an appropriate writ of garnishment.

(2) Form of writ. - The writ shall state -

(A) The nature and amount of the debt, and any cost and

interest owed with respect to the debt.

(B) The name and address of the garnishee.

(C) The name and address of counsel for the United States.

(D) The last known address of the judgment debtor.

(E) That the garnishee shall answer the writ within 10 days

of service of the writ.

(F) That the garnishee shall withhold and retain any property

in which the debtor has a substantial nonexempt interest and

for which the garnishee is or may become indebted to the

judgment debtor pending further order of the court.

(3) Service of writ. - The United States shall serve the

garnishee and the judgment debtor with a copy of the writ of

garnishment and shall certify to the court that this service was

made. The writ shall be accompanied by -

(A) an instruction explaining the requirement that the

garnishee submit a written answer to the writ; and

(B) instructions to the judgment debtor for objecting to the

answer of the garnishee and for obtaining a hearing on the

objections.

(4) Answer of the garnishee. - In its written answer to the

writ of garnishment, the garnishee shall state under oath -

(A) whether the garnishee has custody, control or possession

of such property;

(B) a description of such property and the value of such

interest;

(C) a description of any previous garnishments to which such

property is subject and the extent to which any remaining

property is not exempt; and

(D) the amount of the debt the garnishee anticipates owing to

the judgment debtor in the future and whether the period for

payment will be weekly or another specified period.

The garnishee shall file the original answer with the court

issuing the writ and serve a copy on the debtor and counsel for

the United States.

(5) Objections to answer. - Within 20 days after receipt of the

answer, the judgment debtor or the United States may file a

written objection to the answer and request a hearing. The party

objecting shall state the grounds for the objection and bear the

burden of proving such grounds. A copy of the objection and

request for a hearing shall be served on the garnishee and all

other parties. The court shall hold a hearing within 10 days

after the date the request is received by the court, or as soon

thereafter as is practicable, and give notice of the hearing date

to all the parties.

(6) Garnishee's failure to answer or pay. - If a garnishee

fails to answer the writ of garnishment or to withhold property

in accordance with the writ, the United States may petition the

court for an order requiring the garnishee to appear before the

court to answer the writ and to so withhold property before the

appearance date. If the garnishee fails to appear, or appears and

fails to show good cause why the garnishee failed to comply with

the writ, the court shall enter judgment against the garnishee

for the value of the judgment debtor's nonexempt interest in such

property (including nonexempt disposable earnings). The court may

award a reasonable attorney's fee to the United States and

against the garnishee if the writ is not answered within the time

specified therein and a petition requiring the garnishee to

appear is filed as provided in this section.

(7) Disposition order. - After the garnishee files an answer

and if no hearing is requested within the required time period,

the court shall promptly enter an order directing the garnishee

as to the disposition of the judgment debtor's nonexempt interest

in such property. If a hearing is timely requested, the order

shall be entered within 5 days after the hearing, or as soon

thereafter as is practicable.

(8) Priorities. - Judicial orders and garnishments for the

support of a person shall have priority over a writ of

garnishment issued under this section. As to any other writ of

garnishment or levy, a garnishment issued under this section

shall have priority over writs which are issued later in time.

(9) Accounting. - (A) While a writ of garnishment is in effect

under this section, the United States shall give an annual

accounting on the garnishment to the judgment debtor and the

garnishee.

(B) Within 10 days after the garnishment terminates, the United

States shall give a cumulative written accounting to the judgment

debtor and garnishee of all property it receives under a writ of

garnishment. Within 10 days after such accounting is received,

the judgment debtor or garnishee may file a written objection to

the accounting and a request for hearing. The party objecting

shall state grounds for the objection. The court shall hold a

hearing on the objection within 10 days after the court receives

the request for a hearing, or as soon thereafter as is

practicable.

(10) Termination of garnishment. - A garnishment under this

chapter is terminated only by -

(A) a court order quashing the writ of garnishment;

(B) exhaustion of property in the possesion,(!1) custody, or

control of the garnishee in which the debtor has a substantial

nonexempt interest (including nonexempt disposable earnings),

unless the garnishee reinstates or reemploys the judgment

debtor within 90 days after the judgment debtor's dismissal or

resignation; or

(C) satisfaction of the debt with respect to which the writ

is issued.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4956.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3002, 3104 of this title;

title 8 section 1183a.

-FOOTNOTE-

(!1) So in original. Probably should be "possession,".

-End-

-CITE-

28 USC Sec. 3206 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER C - POSTJUDGMENT REMEDIES

-HEAD-

Sec. 3206. Discharge

-STATUTE-

A person who pursuant to an execution or order issued under this

chapter by a court pays or delivers to the United States, a United

States marshal, or a receiver, money or other personal property in

which a judgment debtor has or will have an interest, or so pays a

debt such person owes the judgment debtor, is discharged from such

debt to the judgment debtor to the extent of the payment or

delivery.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4959.)

-End-

-CITE-

28 USC SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING

DEBTS 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-MISC1-

Sec.

3301. Definitions.

3302. Insolvency.

3303. Value for a transfer or obligation.(!1)

3304. Transfer fraudulent as to a debt to the United States.

3305. When transfer is made or obligation is incurred.

3306. Remedies of the United States.

3307. Defenses, liability and protection of transferee.(!1)

3308. Supplementary provision.

-FOOTNOTE-

(!1) So in original. Does not conform to section catchline.

-End-

-CITE-

28 USC Sec. 3301 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3301. Definitions

-STATUTE-

As used in this subchapter:

(1) "Affiliate" means -

(A) a person who directly or indirectly owns, controls, or

holds with power to vote, 20 percent or more of the outstanding

voting securities of the debtor, other than a person who holds

the securities -

(i) as a fiduciary or agent without sole discretionary

power to vote the securities; or

(ii) solely to secure a debt, if the person has not

exercised the power to vote;

(B) a corporation 20 percent or more of whose outstanding

voting securities are directly or indirectly owned, controlled,

or held with power to vote, by the debtor or a person who

directly or indirectly owns, controls, or holds with power to

vote, 20 percent or more of the outstanding voting securities

of the debtor, other than the person who holds securities -

(i) as a fiduciary or agent without sole power to vote the

securities; or

(ii) solely to secure a debt, if the person has not in fact

exercised the power to vote;

(C) a person whose business is operated by the debtor under a

lease or other agreement, or a person substantially all of

whose assets are controlled by the debtor; or

(D) a person who operates the debtor's business under a lease

or other agreement or controls substantially all of the

debtor's assets.

(2) "Asset" means property of a debtor, but does not include -

(A) property to the extent it is encumbered by a valid lien;

(B) property to the extent it is generally exempt under

nonbankruptcy law; or

(C) an interest in real property held in tenancy by the

entirety, or as part of a community estate, to extent such

interest is not subject to process by the United States holding

a claim against only one tenant or co-owner.

(3) "Claim" means a right to payment, whether or not the right

is reduced to judgment, liquidated, unliquidated, fixed,

contingent, matured, unmatured, disputed, undisputed, legal,

equitable, secured, or unsecured.

(4) "Creditor" means a person who has a claim.

(5) "Insider" includes -

(A) if the debtor is an individual -

(i) a relative of the debtor or of a general partner of the

debtor;

(ii) a partnership in which the debtor is a general

partner;

(iii) a general partner in a partnership described in

clause (ii); or

(iv) a corporation of which the debtor is a director,

officer, or person in control;

(B) if the debtor is a corporation -

(i) a director of the debtor;

(ii) an officer of the debtor;

(iii) a person in control of the debtor;

(iv) a partnership in which the debtor is a general

partner;

(v) a general partner in a partnership described in clause

(iv); or

(vi) a relative of a general partner, director, officer, or

person in control of the debtor;

(C) if the debtor is a partnership -

(i) a general partner in the debtor;

(ii) a relative of a general partner in, a general partner

of, or a person in control of the debtor;

(iii) another partnership in which the debtor is a general

partner;

(iv) a general partner in a partnership described in clause

(iii); or

(v) a person in control of the debtor.(!1)

(D) an affiliate, or an insider of an affiliate as if the

affiliate were the debtor; and

(E) a managing agent of the debtor.

(4) (!2) "Lien" means a charge against or an interest in

property to secure payment of a debt and includes a security

interest created by agreement, a judicial lien obtained by legal

or equitable process or proceedings, a common law lien, or a

statutory lien.

(5) (!3) "Relative" means an individual related, by

consanguinity or adoption, within the third degree as determined

by the common law, a spouse, or an individual so related to a

spouse within the third degree as so determined.

(6) (!4) "Transfer" means every mode, direct or indirect,

absolute or conditional, voluntary or involuntary, of disposing

of or parting with an asset or an interest in an asset, and

includes payment of money, release, lease, and creation of a lien

or other encumbrance.

(7) (!5) "Valid lien" means a lien that is effective against

the holder of a judicial lien subsequently obtained in legal or

equitable proceeding.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4959.)

-FOOTNOTE-

(!1) So in original. The period probably should be a semicolon.

(!2) So in original. Probably should be "(6)".

(!3) So in original. Probably should be "(7)".

(!4) So in original. Probably should be "(8)".

(!5) So in original. Probably should be "(9)".

-End-

-CITE-

28 USC Sec. 3302 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3302. Insolvency

-STATUTE-

(a) In General. - Except as provided in subsection (c), a debtor

is insolvent if the sum of the debtor's debts is greater than all

of the debtor's assets at a fair valuation.

(b) Presumption. - A debtor who is generally not paying debts as

they become due is presumed to be insolvent.

(c) Calculation. - A partnership is insolvent under subsection

(a) if the sum of the partnership's debts is greater than the

aggregate, at a fair valuation, of -

(1) all of the partnership's assets; and

(2) the sum of the excess of the value of each general

partner's non-partnership assets over the partner's

non-partnership debts.

(d) Assets. - For purposes of this section, assets do not include

property that is transferred, concealed, or removed with intent to

hinder, delay, or defraud creditors or that has been transferred in

a manner making the transfer voidable under this subchapter.

(e) Debts. - For purposes of this section, debts do not include

an obligation to the extent such obligation is secured by a valid

lien on property of the debtor not included as an asset.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4961.)

-End-

-CITE-

28 USC Sec. 3303 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3303. Value for transfer or obligation

-STATUTE-

(a) Transaction. - Value is given for a transfer or an obligation

if, in exchange for the transfer or obligation, property is

transferred or an antecedent debt is secured or satisfied, but

value does not include an unperformed promise made otherwise than

in the ordinary course of the promisor's business to furnish

support to the debtor or another person.

(b) Reasonably Equivalent Value. - For the purposes of sections

3304 and 3307, a person gives a reasonably equivalent value if the

person acquires an interest of the debtor in an asset pursuant to a

regularly conducted, noncollusive foreclosure sale or execution of

a power of sale for the acquisition or disposition of such interest

upon default under a mortgage, deed of trust, or security

agreement.

(c) Present Value. - A transfer is made for present value if the

exchange between the debtor and the transferee is intended by them

to be contemporaneous and is in fact substantially contemporaneous.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4961.)

-End-

-CITE-

28 USC Sec. 3304 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3304. Transfer fraudulent as to a debt to the United States

-STATUTE-

(a) Debt Arising Before Transfer. - Except as provided in section

3307, a transfer made or obligation incurred by a debtor is

fraudulent as to a debt to the United States which arises before

the transfer is made or the obligation is incurred if -

(1)(A) the debtor makes the transfer or incurs the obligation

without receiving a reasonably equivalent value in exchange for

the transfer or obligation; and

(B) the debtor is insolvent at that time or the debtor becomes

insolvent as a result of the transfer or obligation; or

(2)(A) the transfer was made to an insider for an antecedent

debt, the debtor was insolvent at the time; and

(B) the insider had reasonable cause to believe that the debtor

was insolvent.

(b) Transfers Without Regard to Date of Judgment. - (1) Except as

provided in section 3307, a transfer made or obligation incurred by

a debtor is fraudulent as to a debt to the United States, whether

such debt arises before or after the transfer is made or the

obligation is incurred, if the debtor makes the transfer or incurs

the obligation -

(A) with actual intent to hinder, delay, or defraud a creditor;

or

(B) without receiving a reasonably equivalent value in exchange

for the transfer or obligation if the debtor -

(i) was engaged or was about to engage in a business or a

transaction for which the remaining assets of the debtor were

unreasonably small in relation to the business or transaction;

or

(ii) intended to incur, or believed or reasonably should have

believed that he would incur, debts beyond his ability to pay

as they became due.

(2) In determining actual intent under paragraph (1),

consideration may be given, among other factors, to whether -

(A) the transfer or obligation was to an insider;

(B) the debtor retained possession or control of the property

transferred after the transfer;

(C) the transfer or obligation was disclosed or concealed;

(D) before the transfer was made or obligation was incurred,

the debtor had been sued or threatened with suit;

(E) the transfer was of substantially all the debtor's assets;

(F) the debtor absconded;

(G) the debtor removed or concealed assets;

(H) the value of the consideration received by the debtor was

reasonably equivalent to the value of the asset transferred or

the amount of the obligation incurred;

(I) the debtor was insolvent or became insolvent shortly after

the transfer was made or the obligation was incurred;

(J) the transfer occurred shortly before or shortly after a

substantial debt was incurred; and

(K) the debtor transferred the essential assets of the business

to a lienor who transferred the assets to an insider of the

debtor.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4961.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3303, 3306, 3307 of this

title.

-End-

-CITE-

28 USC Sec. 3305 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3305. When transfer is made or obligation is incurred

-STATUTE-

For the purposes of this subchapter:

(1) A transfer is made -

(A) with respect to an asset that is real property (other

than a fixture, but including the interest of a seller or

purchaser under a contract for the sale of the asset), when the

transfer is so far perfected that a good-faith purchaser of the

asset from the debtor against whom applicable law permits the

transfer to be perfected cannot acquire an interest in the

asset that is superior to the interest of the transferee; and

(B) with respect to an asset that is not real property or

that is a fixture, when the transfer is so far perfected that a

creditor on a simple contract cannot acquire, otherwise than

under this subchapter, a judicial lien that is superior to the

interest of the transferee.

(2) If applicable law permits the transfer to be perfected as

approved in paragraph (1) and the transfer is not so perfected

before the commencement of an action or proceeding for relief

under this subchapter, the transfer is deemed made immediately

before the commencement of the action or proceeding.

(3) If applicable law does not permit the transfer to be

perfected as provided in paragraph (1), the transfer is made when

it becomes effective between the debtor and the transferee.

(4) A transfer is not made until the debtor has acquired rights

in the asset transferred.

(5) An obligation is incurred -

(A) if oral, when it becomes effective between the parties;

or

(B) if evidenced by a writing executed by the obligor, when

such writing is delivered to or for the benefit of the obligee.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4962.)

-End-

-CITE-

28 USC Sec. 3306 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3306. Remedies of the United States

-STATUTE-

(a) In General. - In an action or proceeding under this

subchapter for relief against a transfer or obligation, the United

States, subject to section 3307 and to applicable principles of

equity and in accordance with the Federal Rules of Civil Procedure,

may obtain -

(1) avoidance of the transfer or obligation to the extent

necessary to satisfy the debt to the United States;

(2) a remedy under this chapter against the asset transferred

or other property of the transferee; or

(3) any other relief the circumstances may require.

(b) Limitation. - A claim for relief with respect to a fraudulent

transfer or obligation under this subchapter is extinguished unless

action is brought -

(1) under section 3304(b)(1)(A) within 6 years after the

transfer was made or the obligation was incurred or, if later,

within 2 years after the transfer or obligation was or could

reasonably have been discovered by the claimant;

(2) under subsection (a)(1) or (b)(1)(B) of section 3304 within

6 years after the transfer was made or the obligation was

incurred; or

(3) under section 3304(a)(2) within 2 years after the transfer

was made or the obligation was incurred.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4963.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Rules of Civil Procedure, referred to in subsec. (a),

are set out in the Appendix to this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3307 of this title.

-End-

-CITE-

28 USC Sec. 3307 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3307. Defenses, liability, and protection of transferee

-STATUTE-

(a) Good Faith Transfer. - A transfer or obligation is not

voidable under section 3304(b) with respect to a person who took in

good faith and for a reasonably equivalent value or against any

transferee or obligee subsequent to such person.

(b) Limitation. - Except as provided in subsection (d), to the

extent a transfer is voidable in an action or proceeding by the

United States under section 3306(a)(1), the United States may

recover judgment for the value of the asset transferred, but not to

exceed the judgment on a debt. The judgment may be entered against

-

(1) the first transferee of the asset or the person for whose

benefit the transfer was made; or

(2) any subsequent transferee, other than a good faith

transferee who took for value or any subsequent transferee of

such good-faith transferee.

(c) Value of Asset. - For purposes of subsection (b), the value

of the asset is the value of the asset at the time of the transfer,

subject to adjustment as the equities may require.

(d) Rights of Good Faith Transferees and Obligees. -

Notwithstanding voidability of a transfer or an obligation under

this subchapter, a good-faith transferee or obligee is entitled, to

the extent of the value given the debtor for the transfer or

obligation, to -

(1) a lien on or a right to retain any interest in the asset

transferred;

(2) enforcement of any obligation incurred; or

(3) a reduction in the amount of the liability on the judgment.

(e) Exceptions. - A transfer is not voidable under section

3304(a) or section 3304(b)(2) if the transfer results from -

(1) termination of a lease upon default by the debtor when the

termination is pursuant to the lease and applicable law; or

(2) enforcement of a security interest in compliance with

article 9 of the Uniform Commercial Code or its equivalent in

effect in the State where the property is located.

(f) Limitation of Voidability. - A transfer is not voidable under

section 3304(a)(2) -

(1) to the extent the insider gives new value to or for the

benefit of the debtor after the transfer is made unless the new

value is secured by a valid lien;

(2) if made in the ordinary course of business or financial

affairs of the debtor and the insider; or

(3) if made pursuant to a good-faith effort to rehabilitate the

debtor and the transfer secured both present value given for that

purpose and an antecedent debt of the debtor.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4963.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3303, 3304, 3306 of this

title.

-End-

-CITE-

28 USC Sec. 3308 01/06/03

-EXPCITE-

TITLE 28 - JUDICIARY AND JUDICIAL PROCEDURE

PART VI - PARTICULAR PROCEEDINGS

CHAPTER 176 - FEDERAL DEBT COLLECTION PROCEDURE

SUBCHAPTER D - FRAUDULENT TRANSFERS INVOLVING DEBTS

-HEAD-

Sec. 3308. Supplementary provision

-STATUTE-

Except as provided in this subchapter, the principles of law and

equity, including the law merchant and the law relating to

principal and agent, estoppel, laches, fraud, misrepresentation,

duress, coercion, mistake, insolvency, or other validating or

invalidating cause shall apply to actions and proceedings under

this subchapter.

-SOURCE-

(Added Pub. L. 101-647, title XXXVI, Sec. 3611, Nov. 29, 1990, 104

Stat. 4964.)

-End-