Arizona Laws 12-1595. Garnishment of bank account in names of two or more persons; bond of judgment creditor
A. A bank deposit made in the names of two or more persons shall be subject to garnishment.
Terms Used In Arizona Laws 12-1595
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Judgment creditor: means a person or entity that has a money judgment or an order for support of a person that is due and unpaid or an order pursuant to chapter 14 of this title allowing him to garnish monies, personal property or shares of stock before final judgment on the underlying action. See Arizona Laws 12-1570
- Judgment debtor: means a person or entity against which a money judgment has been awarded or against which an order for support of a person is due and unpaid or against which an order pursuant to chapter 14 of this title has been entered. See Arizona Laws 12-1570
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Registered mail: includes certified mail. See Arizona Laws 1-215
- Writ: A formal written command, issued from the court, requiring the performance of a specific act.
- Writ: means an order or precept in writing issued in the name of the state or by a court or judicial officer. See Arizona Laws 1-215
B. The answering garnishee shall, upon service of the writ, impound all funds then present in the bank account, and shall promptly notify each person who appears from the business records of the garnishee to have an interest in such bank account in addition to the judgment debtor that such account has been impounded, the name of the judgment creditor and judgment debtor and the court in which the action is pending as stated on the writ. The notice may be made personally or by registered mail, postage prepaid, addressed to each such person at his last known address as reflected by the business records of the garnishee.
C. The answer of the garnishee, in such case, shall state under oath the names of all persons who appear from the business records of the garnishee to have an interest in the bank account in addition to the judgment debtor. Upon the filing of the answer the court shall join all persons who appear to have an interest in the bank account in addition to the judgment debtor, as reflected by the answer of garnishee, and shall proceed to a determination of the interest of the judgment debtor therein.
D. Upon entry of an order based upon such proceeding all impounded funds, except those of the judgment debtor, shall be released by the garnishee. The matter shall otherwise proceed as in any other garnishment action.
E. All persons whose funds are impounded under the provisions of this section shall, together with the judgment debtor, be considered to be joint and several obligees of the bond provided for by section 12-1573, but the liability of the sureties on such bond shall be limited to the amount of the penal sum named in the bond.