Minnesota Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Minnesota's Statutes Of Limitations. Minnesota phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Minnesota Fair Debt Collection Consumer Practices Guide summarizes Minnesota's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Minnesota Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Minnesota’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Minnesota Debt Exemption Law!
Minnesota Statutes
The State of Minnesota has not opted out of federal bankruptcy exemptions.
Wages: Minnesota Statutes Annotated §§ 550.37(13), (14), (25), 550.136, and
571.922.
Homestead: Minnesota Statutes Annotated §§ 510.01, .02, .06, .07, and
550.37(12).
Tangible personal property: Minnesota Statutes Annotated § 550.37.
Benefits, retirement plans, insurance, judgments, and other intangibles:
Minnesota Statutes Annotated § 550.37.
Minnesota Debt Statutes of Limitation
Your debt may have expired under Minnesota’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Minnesota Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Minnesota Debt Statutes of Limitation
Breach of contract for sale under the UCC: 4 years, (MSA 336.2.).
NOTE: Except where the Uniform Commercial Code otherwise prescribes, actions based on a contract or other obligation, express or implied, must be brought within 6 years after the cause of action occurred (Chapter 541).
Tolling: New written acknowledgement or payment tolls the statute of limitations for the debt.
Judgments: 10 years.
Minnesota Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Minnesota’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Minnesota law.
Minnesota Wage Garnishment Procedural Requirements
If a judgment has been docketed in district court for at least 30 days, and the judgment is not satisfied, the district court in the county in which the judgment originated shall, upon the request of the judgment creditor, order the judgment debtor to mail by certified mail to the judgment creditor information as to the nature, amount, identity, and locations of all of the debtor's assets, liabilities, and personal earnings. Minn. Statute. Ann. _ 550.011.
In aid of the judgment or execution, the judgment creditor may obtain discovery from any person, including the judgment debtor, in the manner provided by these rules. Minn. R. Civil. P. 69. After the issuing or return of an execution against property of the judgment debtor, upon proof, by affidavit or otherwise, to the satisfaction of the judge, that any person has property of the judgment debtor, or is indebted to the judgment debtor in an amount exceeding $10, the judge may require such person, or any officer thereof if a corporation, upon such to any party as may seem proper, to appear and answer concerning the same. Minn. Statute. Ann. _ 575.07. When a judgment requires the payment of money, it may be enforced by execution. Minn. Statute. Ann. _ 550.02.
The sheriff may levy upon money or other indebtedness owed by a third party to the judgment debtor. The sheriff may serve a copy of the writ of execution through a registered or certified letter or by personal service to the third party. If the levy is upon funds at a financial institution, the third party shall be paid a $15 fee at the time of the service of the writ of execution. The $15 shall not be paid where the funds being levied on are being retained pursuant to a garnishment previously served in compliance with chapter 571. This fee may be recovered by the judgment creditor as an allowable cost. The judgment creditor shall provide the $15 fee to the sheriff to be paid to the third party. If a third party is required to appear and submit to oral examination, the third party shall be tendered, in advance of the examination, fees and mileage for attendance at the rate allowed by law to a witness. These fees may be recovered by the judgment creditor as an allowable disbursement. In extraordinary cases, the third party may be allowed additional sums the court considers reasonable for attorney fees and other necessary expenses. The court shall then determine which party bears the burden of this expense. Minn. Statute. Ann. _ 550.135.
When the sheriff is levying upon funds at a financial institution, along with the writ of execution and the exemption notice, the sheriff shall serve upon the financial institution an execution disclosure form. If the levy is on funds of a judgment debtor who is a natural person and if the funds to be levied are held on deposit at any financial institution, the judgment creditor or its attorney shall provide the sheriff with two copies of an exemption notice. The sheriff shall serve both copies of the exemption notice on the financial institution, along with the writ of execution. However, if the execution is on funds that have previously been garnished, the judgment creditor is not required to serve additional exemption notices. In that event, the execution levy shall only be effective as to the funds that were subject to the prior garnishment. Upon receipt of the writ of execution and exemption notices, the financial institution shall retain as much of the amount due under the writ of execution as the financial institution has on deposit owing the judgment debtor, but not more than 110 percent of the amount remaining due on the judgment. Minn. Statute. Ann. _ 550.143.
An attorney for a judgment creditor may also execute on a money judgment by levying on an indebtedness owed to the judgment debtor by a third party. The attorney for the judgment creditor must obtain a writ of execution before the attorney can execute. No more than $5,000 may be recovered by a single execution levy. Minn. Statute. Ann. _ 551.01. An attorney levying on funds at a financial institution must follow the same procedures as a sheriff as outlined above. See Minn. Statute. Ann. __ 551.04, .05.
However, when an attorney is levying on the funds, the financial institution is not required to retain more than 100 percent of the amount remaining due on the judgment, or $5,000, whichever is less. In addition to the above procedures, a creditor may institute garnishment proceedings under chapter 571 (Minn. Statute. Ann. _ 571.71, et seq.). at any time after entry of a money judgment in a civil action.
Interest Rate at which Judgments Accrue When a judgment or award is for the recovery of money, interest from the time of the verdict, award, or report until judgment is finally entered shall be computed as simple interest per annum. The rate of interest shall be based on the secondary market yield of one year United Statutees treasury bills, calculated on a bank discount basis. During each calendar year, interest shall accrue on the unpaid balance of the judgment or award from the time that it is entered or made until paid, at the annual rate discussed above. Minn. Statute. Ann. _ 549.09.
Note: Special rules apply to pre-verdict, pre-award, or pre-report interest on pecuniary damages. See Minn. Statute. Ann. _ 549.09(1)(b). Applicable Forms Sheriff's Exemption Notice, Minn. Statute. Ann. _ 550.143(3) Execution Disclosure Form, Minn. Statute. Ann. _ 550.143(2). Notice of Third Party Levy and Disclosure Form, Minn. Statute. Ann. _ 551.04(4). Attorney's Exemption Notice, Minn. Statute. Ann. _ 551.05(1a).
Minnesota (Debt Collector) Call Recording Law
Under Minnesota State and Federal Call Recording Laws, you could record the actual recorded conversation with a debt collector in your efforts to stop debt collectors from calling! Minnesota is a one party consent state, meaning only the permission of one person on the call is necessary to record. YOU ALONE can be considered the one party to give consent, thus you do not need a debt collectors permission to record the phone conversation in the state of Minnesota.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.
