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, 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, the bill updates section 571.73 to clarify that money in depository accounts totaling $1,000 or less is not subject to attachment by garnishment, reinforcing the new exemption established in section 550.37.

The bill also outlines the responsibilities of garnishees and financial institutions regarding the handling of garnished funds. 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. Furthermore, the bill mandates that creditors provide exemption notices to debtors, and it establishes procedures for debtors to claim 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