This bill amends various sections of the Minnesota Statutes to modify exemptions related to garnishment and bankruptcy. A significant addition is found in Minnesota Statutes 2024, section 550.37, where a new subdivision 29 is introduced, allowing debtors to exempt up to $1,000 in one or more depository accounts from garnishment, regardless of the source of the funds. This exemption is in addition to other exemptions available to the debtor, but cannot be claimed alongside the exemption under subdivision 28. The bill also updates section 571.73, subdivision 4, to include a provision that money in depository accounts totaling $1,000 or less is not subject to attachment by garnishment, except as specified in the new subdivision 29.

Additionally, the bill outlines the duties of garnishees and financial institutions in relation to the garnishment process. It specifies that financial institutions must retain amounts owed to the debtor up to 110 percent of the creditor's claim, while also ensuring compliance with the new exemption rules. The bill emphasizes the importance of providing exemption notices to debtors and establishes procedures for claiming exemptions. All changes are set to take effect on August 1, 2025, and will apply to causes of action commenced on or after that date.

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