The Missouri legislature passed a new version of Missouri Revised Statute 525.040, which sets out the effect of a notice of garnishment, including wage garnishments. The new version will go into effect on January 15, 2015.
Under the statute’s revised language, a judgment creditor may now request a continuous wage garnishment until the judgment is paid in full or until the debtor’s employment is terminated, whichever occurs first. Previously, wage garnishments expired after a certain number of days, and a judgment creditor had to reissue the garnishment order if it wanted to continue collecting wages after expiration. The revised statute also provides that the priority of garnishment writs will be determined according to the date of service on the garnishee. Additionally, the statute requires employers to inform the judgment creditor of a later-served garnishment of the existence and case number of all senior garnishments if the employee’s wages have more than one writ attached.
This new law allows judgment creditors to gain a higher priority over other, possibly pre-existing judgment creditors, depending on the date of service of the garnishment.