This bill amends various sections of the Minnesota Statutes to modify exemptions related to garnishment and bankruptcy. A significant addition is made to section 550.37, which introduces a new subdivision exempting up to $1,000 in a debtor's depository accounts from garnishment, provided that the exemption cannot be claimed alongside another specific exemption. Additionally, section 571.73 is updated to include this new exemption, stating that money in depository accounts totaling $1,000 or less is not attachable by garnishment. The bill also clarifies the duties of garnishees and financial institutions regarding the handling of garnished funds and exemption notices.

The bill specifies that these changes will take effect on August 1, 2025, and will apply to causes of action commenced on or after that date. Other amendments include the requirement for creditors to serve exemption notices with garnishment summons and the stipulation that failure to send these notices renders the garnishment void. Overall, the bill aims to enhance protections for debtors by increasing the amount of exempt funds and clarifying the processes involved in garnishment.

Statutes affected:
Introduction: 550.37, 571.73, 571.78, 571.911, 571.913