812.41.Garnishee liability.

Ch. 812: Garnishment · Last amended 1993 · Last verified July 15, 2026

In one sentenceSection 812.41 lets a creditor sue a garnishee who fails to pay over earnings on time and lets a debtor sue a garnishee who withholds too much, while giving each garnishee a limited defense that can cap what it owes.

Full Text of Section 812.41

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(1) If the garnishee fails to pay over funds to which the creditor is entitled under this subchapter within the time required under s. 812.39, the creditor may, upon notice to all of the parties, move the court for judgment against the garnishee in the amount of the unsatisfied judgment plus interest and costs. The garnishee may assert the affirmative defense that the amount of the debtor’s nonexempt disposable earnings that the creditor should have been paid is less than the amount of the unsatisfied judgment balance. If the garnishee proves that defense, the garnishee’s liability is limited to the amount the creditor should have been paid or $100, whichever is greater.

(2) The debtor may move the court for judgment against the garnishee for the debtor’s actual damages if the garnishee deducts more from the debtor’s earnings than is authorized by this subchapter.

(3) In any proceeding under sub. (2), the garnishee may assert the affirmative defense that the wrongful conduct of the garnishee was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid that error. If the garnishee proves that defense, liability of the garnishee is limited to the return to the debtor of any exempt disposable earnings paid to the creditor.

End

Official Notes

NOTE: 1993 Wis. Act 80 contains Judicial Council notes.

Plain-English Summary

Section 812.41 gives both the creditor and the debtor a remedy against a garnishee who mishandles an earnings garnishment. If the garnishee fails to pay over funds the creditor is entitled to within the time section 812.39 requires, the creditor can, after giving notice to all parties, move the court for judgment against the garnishee for the amount of the unsatisfied judgment plus interest and costs. The garnishee is not without a defense, though: if it can show the debtor’s nonexempt disposable earnings owed to the creditor were less than the unsatisfied judgment balance, its liability is limited to whichever is greater — the amount that should have been paid, or $100.

The debtor’s side of the remedy works differently. If the garnishee deducts more from the debtor’s earnings than the subchapter authorizes, the debtor can move the court for judgment against the garnishee for the debtor’s actual damages. Here too the garnishee has a narrow way to limit its exposure: if it proves the wrongful conduct was unintentional, resulted from a bona fide error, and happened despite procedures reasonably designed to prevent that kind of mistake, its liability is capped at returning to the debtor whatever exempt earnings were wrongly paid to the creditor.

Frequently Asked Questions

What can a creditor do if the garnishee never pays over the earnings it owes?

After notice to all the parties, the creditor can move the court for judgment against the garnishee for the amount of the unsatisfied judgment plus interest and costs.

Can a garnishee limit how much it owes the creditor for a late or missed payment?

Yes. If the garnishee proves the debtor’s nonexempt disposable earnings owed were less than the unsatisfied judgment balance, its liability is limited to the greater of that amount or $100.

What can I do if the garnishee took more out of my paycheck than it was allowed to?

You can move the court for judgment against the garnishee for your actual damages.

Can a garnishee avoid liability for over-withholding by claiming it was a mistake?

Only in a limited way. If it proves the conduct was unintentional, a bona fide error, and happened despite reasonably adapted procedures, its liability is limited to returning the exempt earnings it wrongly paid to the creditor.

Does the creditor have to notify anyone before moving for judgment against the garnishee?

Yes. Section 812.41 requires notice to all of the parties before that motion is made.

Amendment History

History: 1993 a. 80.

Source & verification. Section text and official notes are reproduced verbatim from the Wisconsin Statutes, published by the Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026. · Official source

Also known as: wisconsin garnishee liabilitygarnishee failed to pay creditor wisconsingarnishee over withheld wages wisconsinwisconsin garnishment bona fide error defense