Collection Defense

Dealing with Gurstel Law Firm in Minnesota: What You Need to Know

Who is Gurstel law firm?

Gurstel Law Firm is a debt-collection law firm headquartered in Golden Valley, Minnesota. Their attorneys regularly appear in Minnesota courts and also handle collection matters in Arizona, California, Iowa, Nebraska, Nevada, Utah, and Wyoming.

They represent major banks, credit-card issuers, and debt buyers, and they’re experienced at moving quickly toward judgment.

If You’re Sued by Gurstel: Your Options

If you’ve been served with a summons and complaint, you typically have three paths:

  1. Defend the case – Serve a written Answer within 21 days and raise any valid defenses (e.g., statute of limitations, identity/authorization issues, assignment proof for debt buyers).

  2. Negotiate a settlement – A timely Answer often improves leverage and may reduce total cost/risk.

  3. File bankruptcy – For some clients, Chapter 7 or 13 stops the lawsuit and addresses other debts.

Start here: Minnesota Debt Collection Lawsuit Guide: Part 1—Summons & Complaint and Part 2—The Answer

Want a roadmap after you answer? Part 3—After the Answer

Heads-up: Gurstel’s lawyers know Minnesota court rules well. Missing the 21-day Answer deadline often leads to a default judgment. This happens without a hearing and no judge reviews the case.

If Gurstel Is Garnishing You: How to Stop It

If your wages or bank account are being garnished, you generally have four ways to stop it:

  1. Claim an exemption (if you qualify)

  2. Negotiate a settlement

  3. Vacate the judgment (in limited circumstances)

  4. File bankruptcy

Learn the pros/cons: Minnesota Garnishment Guide

Why Talk to a Lawyer Early?

  • The 21-day Answer deadline is unforgiving.

  • Good defenses can be waived if not raised.

  • Even if settlement is your goal, a prompt, proper Answer can improve the deal.

  • A judgment opens the door to garnishment and liens.

Gurstel Law FAQs

How long do I have to respond to a Gurstel lawsuit in Minnesota? You must serve a written Answer within 21 days of being served, or the creditor can get a default judgment administratively.

My summons doesn’t have a court file number, is it real or fake? Real. Minnesota allows “pocket filing,” so collectors can serve before filing with the court. You still must Answer.

Do I have defenses against a Gurstel lawsuit? Possibly. Common defenses include statute of limitations, unauthorized use/fraud, payment/settlement, and where applicable, a failure to prove assignment by a debt buyer. The right defenses depend on your facts.

Can you help if Gurstel is already garnishing me? Yes. We’ll assess exemptions, settlement, vacating the judgment, or bankruptcy based on your goals and risk.

Need help dealing with Gurstel Law Firm?
Schedule a consult with debt defense lawyer Todd Murray.

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Since 2009, Todd has helped hundreds of Minnesotans dealing with debt collection by Gurstel Law. His work has saved his clients lots of money and many sleepless nights. Todd’s clients describe him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

schedule a consult with todd

The Minnesota Garnishment Guide: Part 2—How to Stop Garnishment

This is part two of a four-part series about garnishment in Minnesota:

Part 1—Garnishment Basics
Part 3—Claiming Garnishment Exemptions
Part 4—Wrongful Garnishment

How to Stop a Garnishment in Minnesota

There are four ways to stop a garnishment in Minnesota: (1) claim an exemption; (2) negotiate a settlement; (3) vacate the judgment; and (4) file bankruptcy. Here’s an in-depth look at each of these options.

Option #1: If you get need-based assistance, claim an exemption

The first way to stop a garnishment in Minnesota is to claim an exemption. Exemptions are legal reasons why your paycheck or bank account are protected from garnishment. Exemption laws vary by state. In Minnesota, some common exemptions are:

  • Creditors cannot take your social security or other need-based government aid from your bank account.

  • If you received need-based government aid within the last 6 months, your wages cannot be garnished at all.

  • In most other cases, creditors can only take 25% of your paycheck.

Important caveat: if you’re being garnished for child support, alimony, or many types of government debt (including federal student loans) the rules are different. 

WHO IS CLAIMING AN EXEMPTION THE RIGHT OPTION FOR?

Anyone who qualifies for it. If your circumstances allow, you should assert your exemption to stop the garnishment and get your money back. But remember, claiming an exemption doesn’t make the debt go away, it just means that your money is protected from garnishment for the time being.

Option #2: If you can afford it, negotiate a settlement

A second way to stop a garnishment is to negotiate a settlement with the collector. The idea here is to get the creditor to stop the garnishment in exchange for voluntary payment.

WHO IS DEBT SETTLEMENT THE RIGHT OPTION FOR?

Anyone who can afford to pay a reasonable settlement to fully resolve the debt. If you have many debts and can’t realistically afford to settle all of them, this option probably isn’t the best choice for you.

Also, keep in mind that if the creditor is garnishing your wages for, say, $250 a month, they’re not going to agree to a voluntary settlement where you pay $100 a month. Your best bet to settle when a wage garnishment is already in place is to see if the creditor will take a lump sum payment for less than the full balance. Some creditors prefer the certainty of having some money right away rather than waiting months to get paid in full through garnishment.

Option # 3: If you meet the necessary criteria, vacate the judgment.

Another way to stop a garnishment is to vacate (undo) the underlying court judgment. If you take away the judgment, you take away the right to garnish.

To vacate a judgment in Minnesota, you’ll have to convince the judge that you have a really good reason for not responding to the creditor’s lawsuit and that you have a defense to the creditor’s claim. Further, in most cases you have to vacate the judgment within a year of its entry. 


WHO IS VACATING A JUDGMENT THE RIGHT OPTION FOR?

Anyone who didn’t receive the creditor’s lawsuit or who had a really good reason for not responding to it. For a couple of reasons, though, this is a long-shot option for most people.

  • First, you must provide strong evidence that you never received the creditor’s lawsuit or that you had a good reason for not responding. Just telling the judge “I never got it” or “I didn’t know I needed to respond” isn’t going to cut it. 

  • Second, you have to show the court that you have a valid defense to the debt. 

  • Third, while vacating a judgment stops a garnishment in the short term, the debt doesn’t go away--you just go back to the beginning of the case. 

Because of these challenges, the vast majority of people would be better off choosing one of the other three options to stop a garnishment.

Option # 4: If you have other debts, consider filing bankruptcy

The fourth way to stop a garnishment is to file bankruptcy. Bankruptcy stops wage garnishments and bank levies immediately and may allow you to get the garnished money back. Plus, unlike claiming an exemption or vacating the judgment, bankruptcy also wipes out the debt itself in most cases.

Who is bankruptcy the right option for?

Anyone who has multiple debts. While you might be able to settle one or two accounts, chances are you’re not going to be able to settle multiple debts unless you have access to significant amounts of money.

 

What’s Next in This Series

This is Part 1 of our Minnesota Garnishment Guide. Next, we cover:

Part 1—Garnishment Basics
Part 3—Claiming Garnishment Exemptions
Part 4—Wrongful Garnishment

 

Ready to talk to a lawyer about garnishment?
Schedule a consult with debt defense lawyer Todd Murray.

Since 2009, Todd has helped hundreds of Minnesotans defend garnishments. His work has saved his clients millions of dollars (and many sleepless nights) in the process. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

schedule a consult with todd

The Minnesota Garnishment Guide: Part 4—Wrongful Garnishment

This is part four of a four-part series about garnishment in Minnesota:

Part 1—Garnishment Basics
Part 2—How to Stop Garnishment
Part 3—Claiming Garnishment Exemptions

What is Wrongful Garnishment?

The Fair Debt Collection Practices Act prohibits debt collectors from doing anything that is unfair, untrue, harassing, or abusive. It also forbids debt collectors from taking action that they can’t legally take. Here are some typical FDCPA violations related to garnishments:

Making false statements in the garnishment paperwork

This could include things like: (1) claiming that they have a judgment when they don’t; (2) misstating the balance due; (3) incorrectly describing possible exemptions; and (4) instructing your employer to hold money longer than allowed (in Minnesota, 180 days).

continuing to garnish when the collector knows you’re exempt

If you’ve claimed a valid garnishment exemption and given the debt collector complete proof of your exemption, it’s illegal for them to continue with the
garnishment process. This includes making you appear at an exemption hearing when the collector already has proof of your exemption.

Threatening to garnish all of your wages

In Minnesota, a debt collector can only garnish 25% of your wages. So if a collector is lying if they threaten to garnish 100% of your wages.

garnishing for a debt you’ve already paid

If you’ve already paid the debt in full, you can’t be garnished for more money. Similarly, if you’ve negotiated a payment plan to resolve a debt and you’re current on that payment plan, a debt collector can’t garnish you.

GARNISHING MORE THAN YOU OWE

Recently, I’ve seen more instances of collectors garnishing far more than is owed. This is usually done through a loophole in the garnishment statutes that allow garnishment of more than one bank account at the same time.

Say, for example, the consumer owes a judgment of $4,000. The collector sends out two bank garnishments on the same day, one to the consumer’s account at US Bank, the other the an account at Wells Fargo. The US Bank account has $2,000 in it and the Wells Fargo account has $3,000 in it. So $5,000 gets garnished for a $4,000 judgment. If the debt collector immediately releases the extra $1,000 back to the consumer, that’s probably OK. But if it holds the money for longer, that’s probably wrongful.

Court judgment was vacated or satisfied

Most garnishments happen after a court judgment has been entered. What if the court judgment is vacated or satisfied, though? If the collection judgment is wiped out, then the collector's power to conduct a garnishment is wiped out.

Improper pre-judgment garnishment

Although most Minnesota garnishments happen after a judgment has been entered, the law does allow pre-judgment garnishments in limited circumstances. The way to tell if it’s a prejudgment garnishment is to look at the case caption. If there’s a judgment, it will list the court file number and date of the judgment. If there isn’t a judgment, it will say something like “subject to Minnesota Statutes 571.71, subd. 2.”

Debt collectors occasionally mess up this process. I've seen cases where they do a pre-judgment garnishment even though the defendant has answered the lawsuit. I've also seen cases where they garnish without sending the Notice of Intent to Garnish.

You Can Sue for Wrongful Garnishment

If a debt collector violates the FDCPA through a wrongful garnishment, you can sue them and hold them accountable for their illegal conduct. You can sue even if you owe the debt. If you win the case, you get: (1) $1,000 in statutory damages; (2) any provable actual damages--such as out-of-pocket loss or emotional distress; (3) the collector has to pay your attorney fees; and (4) the collector has to pay your court costs. Most consumer rights attorneys take FDCPA cases on contingent fee arrangements, which means you don’t have to pay any attorney fees up front.

What’s Next in This Series

This is Part 4 of our Minnesota Garnishment Guide. Next, we cover:

Part 1—Garnishment Basics
Part 2—How to Stop Garnishment
Part 3—Claiming Garnishment Exemptions

 

Ready to talk to a lawyer about garnishment?
Schedule a consult with debt defense lawyer Todd Murray.

2017_11_03 Pic.png

Since 2009, Todd has helped hundreds of Minnesotans defend garnishments. His work has saved his clients millions of dollars (and many sleepless nights) in the process. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

schedule a consult with todd

The Minnesota Debt Collection Lawsuit Guide: Part 1—Summons & Complaint

This is part one of a three-part series about debt collection lawsuits in Minnesota:

Part 2—The Answer
Part 3—After the Answer

What is a Debt Collection Summons?

A debt collection summons is a notice that you’re being sued to collect a debt. The summons is accompanied by the complaint, which details the allegations the creditor is making against you. We refer to a summons and complaint, collectively, as a “lawsuit.”

What Does it Mean to Be “Served” With a Summons?

“Served” is just a fancy word for “notified.” Under the court rules, the defendant must get notice of the summons and complaint. This is typically done through personal service—where the summons is given directly to the defendant. A summons and complaint can also be served by leaving it with a person of “suitable age and discretion” at the defendant’s residence. In rare circumstances, a summons and complaint can be served by mail or even by publication in a newspaper.

Why Doesn’t the Summons Have a Court File Number on It?

In most states, debt collectors must file a case with the court before they can serve the summons and complaint on the defendant.

In Minnesota, however, the rules are different. Here, the summons and complaint can be served on the defendant without being filed with the court. This is called “pocket filing.” Because the case isn’t filed with the court at the time of service, it won’t have a court file number on it. And if you were to call the court and ask about the case, they would have no idea what you’re talking about.

Don’t be fooled by this. Just because the summons doesn’t have a court file number on it doesn’t mean that it isn’t valid. You still have to properly respond to the summons and complaint or you will lose the case by default.

So, What Do I Do With the Summons?

If you’re like many people, you’re tempted to do nothing and wait until you get a court date. Unfortunately, this common thinking is a huge mistake.

In Minnesota, you must answer a summons and complaint within 21 days of the date you are served. If you don’t, the creditor will apply for a default judgment. In a default case, the court considers all of the allegations in the complaint as true and gives the creditor whatever they’re asking for. In other words, the debt collector wins automatically—not because they have a better case, but because you didn't participate. In debt collection cases, a default judgment is entered administratively by a court clerk without a court hearing. In fact, in a default, a judge will never even see the case.

A default judgment is a court ruling that you owe the creditor money. And once a creditor has a judgment, they have the power to garnish your bank account and your paycheck.  Although default judgments can occasionally be overturned, for the most part they are final.

This is why it’s so important to answer a debt collection lawsuit within the 21 days. If you don't, you no longer can raise any defenses and will probably have to either negotiate a settlement or consider bankruptcy.

What’s Next in This Series

This is Part 1 of our Minnesota Debt Collection Lawsuit Guide. We also cover:

Part 2—The Answer
Part 3—After the Answer

 

Ready to talk to a lawyer about your collection lawsuit?
Schedule a consult with debt defense lawyer Todd Murray.

2017_11_03 Pic.png

Since 2009, Todd has helped hundreds of Minnesotans defend debt collection lawsuits. His work has saved his clients millions of dollars (and many sleepless nights). Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

schedule a consult with todd