This bill amends various sections of the Minnesota Statutes related to garnishment procedures, focusing on enhancing clarity and protections for debtors. Key changes include the introduction of clearer language in the earnings exemption notice, which informs judgment debtors about the potential for their earnings to be levied and the exemptions available to them. The bill specifies that garnishment can occur without prior court action and outlines specific government assistance programs that qualify for exemptions. Additionally, it updates the earnings disclosure form and worksheet, providing definitions for "earnings" and "disposable earnings," and clarifying employer responsibilities in the garnishment process. Significant insertions include a more straightforward explanation of the garnishment process and detailed instructions for employers, while outdated language and penalties have been removed to enhance understanding.

Furthermore, the bill establishes specific dollar limits for protected assets during garnishment, such as equity in a home, household goods, and motor vehicles, while expanding the list of protected items to include personal libraries and family pets. It also clarifies the protection of wages based on government assistance and outlines the process for claiming exemptions, including the need for supporting documentation. The amendments aim to streamline the garnishment process, ensuring that debtors are adequately informed of their rights and protections while allowing creditors to effectively pursue legitimate claims. The new provisions will take effect on June 1, 2025, with certain retroactive applications from March 1, 2025.

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