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 adjustments to the responsibilities of financial institutions in relation to exemption notices and the retention of funds during garnishment proceedings. Overall, the bill aims to provide greater protection for debtors by increasing the amount of exempt funds in their accounts and clarifying the processes involved in garnishment.

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