The bill amends various sections of the Minnesota Statutes related to garnishment procedures, focusing on enhancing clarity and accessibility for both debtors and creditors. Key changes include the introduction of a new "Earnings Worksheet" that outlines how to calculate disposable earnings and the percentage to be withheld, as well as the revision of the "Non-Earnings Disclosure" form to provide clearer instructions for third parties holding property belonging to a debtor. The bill also updates the garnishment exemption notice, ensuring debtors are informed of their rights and the protections available to them, including specific dollar limits for protected items such as home equity and household goods.

Additionally, the bill clarifies the responsibilities of employers and garnishees in the garnishment process, specifying timelines for responses and the completion of required forms. It introduces new definitions for terms like "earnings" and "disposable earnings," and emphasizes the importance of submitting exemption forms and supporting documents to protect funds from levies. The amendments aim to streamline the garnishment process, enhance transparency, and protect the rights of judgment debtors while ensuring that creditors are aware of their obligations and potential penalties for bad faith actions. The new provisions will take effect retroactively from March 1, 2025, with certain sections effective starting June 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