Minnesota Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: 75% of earnings or amount equal to 40 times the federal minimum hourly wage, whichever is greater
MAXIMUM INTEREST RATE: Legal: 6% Judgment: About 5% (changes annually)
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit card): 6 years
Written Contract: 6 years
Domestic Judgment: 10 years
Foreign Judgment: 10 years
BAD CHECK LAW DAMAGES: $100 or amount of check, whichever is greater, plus interest, and attorney fees if check is over $1250
MINNESOTA BANKRUPTCY PROPERTY EXEMPTIONS (Minnesota Statutes Annotated):
NOTE: Minnesota updates amounts every two years; check statutes for updates.
The State of Minnesota has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real Property: Real property or mobile home to $200,000 for non-farm land, $500,000 if used in farming, up to 1/2 acre in city or 160 acres elsewhere [510.01, 510.02, 550.37(12)]
Personal Property: Burial place and church pew [550.37(3)]; motor vehicle to $2,000 ($20,000 if modified for disabled person) [550.37(12)(a)]; appliances, furniture, radio, phonographs and TV to $4,500 [550.37(4)(b)]; bible, books and musical instruments, unlimited amount [550.37(2)]; clothing, watch, food and utensils, unlimited amount [550.37(4)(a); teaching materials of public school teacher, unlimited amount [550.37(8)]; farm machines, implements, livestock, farm produce and crops up to $13,000 total [550.37(5)]; personal injury and wrongful death recoveries, unlimited amount [550.37(22)]; proceeds for damaged exempt property up to exemption amount [550.37(9) and (16)]; tools, implements, machines, business furniture, stock in trade and library used in business up to $5,000 total [550.37(6)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Police, fire, or beneficiary association benefits, unlimited amount [550.37(11)]; accident or disability insurance proceeds, unlimited amount [550.39]; life insurance proceeds if beneficiary is spouse or child of insured up to $20,000 plus $5,000 per dependent [550.37(10)]; fraternal society benefits, unlimited amount [648.18]; unmatured life insurance contract dividends, interest or loan value up to $4,000 if insured is debtor or dependent [550.37(23)]
Pensions / Retirement Plans: Retirement benefits and IRAs up to $30,000 (present value) [550.37(24)]; unpaid private retirement benefits [181B.16]; public employees, unlimited amount [353.15]; state employees, unlimited amount [352.96]; state troopers, unlimited amount [352B.071]
Public Benefits / Entitlements: Veterans' benefits; workers' compensation; AFDC; general or supplemental assistance; supplemental security income; crime victims' compensation; unemployment compensation
Wages: 75% of earned but unpaid wages [571.922]; earned but unpaid wages, unlimited amount if paid within six months of returning to work and if debtor has ever received welfare [550.37(13)]; wages deposited in bank accounts for 20 days [550.37-13]; wages of released inmates paid within six months of release, unlimited amount [550.37(14)]; earnings of a minor child, unlimited amount [550.37(15)]
Miscellaneous: Property of a business partnership, unlimited amount [323.24]