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, section 571.73 is amended to include this new exemption, stating that money in depository accounts totaling $1,000 or less is not subject to attachment by garnishment. The bill also clarifies the duties of garnishees and financial institutions regarding the handling of garnished funds and exemption notices.

The bill establishes an effective date of August 1, 2025, for all amendments, which will apply to causes of action commenced on or after that date. Other sections, such as 571.911 and 571.913, are also updated to reflect the new exemption and the responsibilities of creditors and financial institutions in the garnishment process. Overall, the bill aims to provide greater protection for debtors by increasing the amount of exempt funds in their accounts while ensuring that financial institutions and creditors adhere to the updated legal framework.

Statutes affected:
Introduction: 550.37, 571.73, 571.78, 571.911, 571.913