Purpose

The bill aims to modify various statutory forms pertaining to garnishment in Minnesota. Garnishment is a legal process through which a court order allows creditors to obtain payment directly from a debtor's wages or bank account.

Main Provisions

• Garnishment Notification: Strengthens the notification requirements to ensure debtors are informed before any levy is placed on their wages. Creditors must notify debtors at least ten days before a writ of execution can be served.

• Exemption Claims: Details the exemptions available for debtors, such as government assistance programs, to ensure certain funds remain protected from garnishment. It requires debtors to submit an exemption claim to protect such funds.

• Disclosure Forms: Revises the forms used by employers (the third party) to disclose information regarding an employee's earnings in garnishment situations. These include specific instructions on how to calculate and report garnished earnings.

• Communication of Rights: Emphasizes debtor rights and the penalties creditors may incur if they disregard valid exemption claims or act in bad faith.

• Standardized Procedures: Outlines standardized procedures for both earnings and non-earnings garnishments, ensuring consistency and clarity in executing garnishments.

Significant Changes

• Expanded List of Exemptions: Updates to the list of funds exempt from garnishment, including various types of government assistance (e.g., Social Security, SNAP, General Assistance).

• Updated Definitions and Calculations: Refines the definitions related to earnings, disposable earnings, and how these are calculated in garnishment scenarios.

• Improved Legal Processes: Provides an updated legal framework for handling objections to garnishments and hearings to challenge exemption claims.

Relevant Terms

• Garnishment
• Writ of Execution
• Earnings Exemption
• Disposable Earnings
• Government Assistance Programs
• Exemption Claim Notice
• Bad Faith
• Disclosure Form