This bill amends various sections of Minnesota Statutes to enhance the garnishment process, focusing on the clarity of notices and forms used by creditors and debtors. Key changes include the introduction of a new earnings exemption notice that must be served to the judgment debtor at least ten days before the execution writ is served on their employer, clearly outlining conditions under which earnings may be exempt from garnishment. The bill also introduces a new "Earnings Worksheet" for calculating disposable earnings and modifies the "Non-Earnings Disclosure" form for financial institutions, ensuring that debtors are better informed of their rights and the garnishment process. Additionally, the definitions of "earnings" and "disposable earnings" have been clarified, and the process for employers to report earnings has been streamlined.

Further amendments include the introduction of specific dollar limits for protected assets during garnishment proceedings, such as equity in a home and household goods, while ensuring that 100% of wages are protected for individuals receiving government assistance based on need. The bill emphasizes the importance of providing clear instructions for debtors on claiming exemptions and outlines penalties for bad faith actions by creditors or debtors. Overall, the bill aims to improve transparency, protect debtors' rights, and ensure that the garnishment process is straightforward and equitable.

Statutes affected:
Introduction: 550.136, 550.143, 551.05, 551.06, 571.72, 571.74, 571.75, 571.912, 571.914, 571.925, 571.931, 571.932
1st Engrossment: 550.136, 550.143, 551.05, 551.06, 571.72, 571.74, 571.75, 571.912, 571.914, 571.925, 571.931, 571.932
2nd Engrossment: 550.136, 550.143, 551.05, 551.06, 571.72, 571.74, 571.75, 571.912, 571.914, 571.925, 571.931, 571.932