The bill amends various sections of Minnesota Statutes to enhance the garnishment process, focusing on notice requirements, exemption forms, and the responsibilities of employers and creditors. A significant change is the introduction of a new earnings exemption notice that must be served to the judgment debtor at least ten days before a writ of execution is issued, providing clearer information about potential levies on earnings and available exemptions. The bill also modifies the execution earnings disclosure form and worksheet, clarifying definitions of "earnings" and "disposable earnings," and outlining employer responsibilities in reporting debtor earnings. These amendments aim to simplify the garnishment process, protect debtor rights, and ensure compliance from creditors and employers.

Additionally, the bill updates the legal language regarding exemptions from garnishment, specifying protections for various forms of income and assets, particularly for individuals receiving government assistance. It introduces detailed lists of protected government benefits and specifies that 100% of wages are protected for those in need. The bill also revises the garnishment summons and notice to ensure clarity, emphasizing the importance of timely disclosures from third parties and outlining the penalties for bad faith claims. Overall, these changes aim to enhance transparency, protect vulnerable individuals, and ensure that all parties involved in the garnishment process are adequately informed of their rights and obligations.

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