Garnishment in Minnesota

 

Protecting Your Paycheck and Bank Account

Wage or bank garnishment is one of the most stressful financial situations you can face. Your paycheck shrinks. Your bank account is frozen. And your bills don’t pause just because a creditor has garnished you.

Minnesota law limits what can be taken and provides ways to stop or reduce garnishment. But those protections usually require action. Doing nothing rarely improves the situation.

This page explains how garnishment works in Minnesota, what can and can’t be taken, how to stop it, and when a creditor’s actions cross the line.

What Is Garnishment?

Garnishment allows a creditor with a judgment to collect money directly from your wages or your bank account.

In Minnesota, wage garnishment generally allows a creditor to take up to 25 percent of your disposable earnings, depending on your income level. And bank garnishment is often more disruptive. A levy can freeze funds without any warning, sometimes triggering overdraft fees or missed payments before you even understand what happened.

Garnishment must follow specific statutory procedures. When collectors fail to follow these procedures, legal claims for wrongful garnishment may arise.

How Garnishment Starts

Once a creditor obtains a court judgment, it may serve a garnishment summons on your employer or your bank. Although Minnesota law allows for pre-judgment garnishment in limited cases, in my experience, virtually all consumer debt garnishments come after judgment.

For a wage garnishment, the creditor must give you at least 10 days notice before taking money from your paycheck. For bank garnishments, however, no notice is required. They creditor can freeze your bank account without warning and you won’t get notice until after the money is held.

Can Garnishment Be Stopped?

Sometimes.

Depending on the circumstances, you may be able to reduce or stop garnishment by claiming legal protection for the money in your bank account or paycheck. In Minnesota, these are called “exemptions.”

You may also be able to stop the garnishment by negotiating a settlement, challenging the underlying judgment, or filing bankruptcy. Bankruptcy, if appropriate, can immediately halt garnishment through the automatic stay.

The right approach depends on the larger financial picture. In some situations, addressing the single judgment makes sense. In others, especially where multiple debts are involved, a broader solution is more practical.

Claiming Exemptions in Minnesota

Not all money can be garnished.

Minnesota law protects certain categories of income and assets. Most need-based public assistance is completely exempt. A portion of your wages is also protected. The protected amount depends on your income, but is usually at least 75%.

Exemptions are not automatic. You must assert them and provide documentation within specific deadlines. Waiting can complicate the process and increase the financial disruption that garnishment inherently causes.

When Garnishment Becomes Wrongful

In my experience, creditors and debt collectors don’t always follow the proper garnishment procedures.

Over the years, I’ve seen wrongful garnishment cases where the collector garnished more than they legally could, garnished even after the judgment was fully-satisfied, or even garnished the wrong person. In these situations, my focus shifts to holding the offending creditor liable for its illegal garnishment, typically by using the Fair Debt Collection Practices Act or other consumer protection laws.

Garnishment and Bankruptcy

Sometimes garnishment is a symptom of a larger problem. If multiple debts are in default, stopping one garnishment may not restore your financial stability.

Bankruptcy can immediately stop wage and bank garnishments and discharges all qualifying debts. Bankruptcy is not right for everyone, but in the right circumstances it can be the most efficient way to get out from under a garnishment.

In Minnesota and ready to talk to a lawyer about a garnishment?
Schedule a consult with debt defense lawyer Todd Murray.

Since 2009, Todd has helped hundreds of Minnesotans get out of debt. 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