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HF2543 (Legislative Session 94 (2025-2026))

Various statutory forms pertaining to garnishment modified.

Related bill: SF2847

AI Generated Summary

Purpose of the Bill

This bill aims to update and modify various legal forms and procedures related to garnishment in the state of Minnesota. It seeks to establish clearer guidelines and processes for the garnishment of wages and other property, ensuring that debtors are adequately informed about their rights and exemptions.

Main Provisions

  • Earnings Exemption Notice: Before garnishing a debtor's wages, creditors must give a 10-day notice informing the debtor of possible garnishment and their right to claim exemptions.
  • Exemption Guidelines: Detailed exemptions based on government assistance or recent imprisonment are outlined, protecting certain income and assets from garnishment.
  • Disclosure Form Changes: Updated forms for creditors and garnishees to use, ensuring they accurately disclose the debtor's exempt income and any applicable claims.
  • Instructions for Debtors: Provides a structured process for debtors to claim exemptions, including supplying relevant documentation and deadlines to challenge garnishment.
  • Penalties for Bad Faith: Establishes penalties for both creditors and debtors if they act in bad faith regarding garnishment exemptions, including fines and legal fees.
  • Additional Protected Income: Lists specific types of government assistance and other income types that are protected from garnishment, such as Social Security benefits and unemployment compensation.

Significant Changes to Existing Law

  • Updated Garnishment Process: The bill refines the process and forms for garnishment, including a variety of notices, worksheets, and legal documents, aiming to enhance clarity and compliance.
  • Expanded Exemption Categories: Clarifies what types of income and assets are exempt from garnishment, including new categories that reflect modern assistance programs and income sources.
  • Detailed Forms and Worksheets: Introduces standardized forms that employers and creditors must use, detailing earnings calculations and how much can be garnished, which helps protect both debtors and garnishees.
  • Notice Requirements: Strengthens the requirement for creditors to provide advance notice to debtors about their rights, ensuring that debtors are aware of their ability to claim exemptions.

Relevant Terms

  • Garnishment
  • Creditors
  • Debtors
  • Exemption Notice
  • Earnings Disclosure
  • Disposable Earnings
  • Government Assistance
  • Bad Faith Penalties
  • Prejudgment Garnishment
  • Social Security Benefits

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toJudiciary Finance and Civil Law
March 26, 2025HouseFloorActionCommittee report, to adopt as amended and re-refer toCommerce Finance and Policy
April 01, 2025HouseFloorActionCommittee report, to adopt
April 01, 2025HouseFloorActionSecond reading
April 22, 2025HouseFloorActionReferred to Chief Clerk for comparison with
April 22, 2025HouseFloorActionReferred to Chief Clerk for comparison with
April 23, 2025HouseFloorActionBills not identical, SF substituted on General Register
April 23, 2025HouseFloorActionBills not identical, SF substituted on General Register
HouseFloorActionSee Senate file in House
April 23, 2025HouseFloorActionHF indefinitely postponed
April 23, 2025HouseFloorActionHF indefinitely postponed
HouseFloorActionSee Senate file in House

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section involves the procedure for earnings exemption notice before the first levy on earnings under Chapter 550.",
      "modified": []
    },
    "citation": "550.136",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This refers to the execution disclosure form that must accompany the writ of execution served upon financial institutions.",
      "modified": []
    },
    "citation": "550.143",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This law provides the format and requirement for an earnings exemption notice prior to the execution of wages levy.",
      "modified": []
    },
    "citation": "551.06",
    "subdivision": "subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section outlines the requirement of a garnishment exemption notice to be provided to the debtor.",
      "modified": []
    },
    "citation": "571.72",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This statute stipulates the form required for garnishment summons and notice to debtors.",
      "modified": []
    },
    "citation": "571.74",
    "subdivision": ""
  }
]

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