How Does Wage Garnishment Work in Minnesota?

Posted by Jesse Horoshak on April 10, 2021 at 8:59 AM
Jesse Horoshak

Closeup of a pen on a piece of paper titled WAGE GARNISHMENT that is clipped to a black clipboard, posing the question, How does wage garnishment work in Minnesota?Wage Garnishment is one of the most pressing concerns for a great deal of our potential clients. They want to know if creditors can garnish their wages, and if so, when it can happen and how much can they take.

Unfortunately, the answer to the first question is yes, under Minnesota state law, the creditors have the right to levy on any available non-exempt property, and that includes a portion of your wages.

Failing to Make Payments on the Credit Extended to You

When you apply for a credit card, or any other form of credit, you are entering into a contractual agreement under which you promise to repay the lender for the credit extended. When you fail to make the payments as agreed upon, the lender has the right to pursue you for breach of contract.

Typically, the creditors begin this process by sending letters regarding the past due balance and demanding payment. After that, they may sell the debt to a collection agency that will continue to try to collect the debt. The debt may be sold one or more times before finally landing with a law firm specializing in debt collection.

When a Debt Collection Law Firm Gets Your Debt

Once the debt reaches a law firm, the firm will file a complaint in state court for breach of contract seeking the amount owed plus attorney's fees.

Summons and Complaint

Once the complaint for breach of contract is received by the court, you will receive a Summons and Complaint. You will be given a period of time in which you must respond if you wish to dispute the claim. Normally, there are not any defenses that you can present, so the end result of this process is that the judge enters a default judgment in favor of the creditor.

Notice of Docketing of the Judgment

After the judgment is entered, you should receive a Notice of Docketing of the Judgment, which is a step that must occur before the creditor may begin the garnishment process. Once the creditor is able to garnish an individual’s wages, they will typically send a Request for Disclosure, and a Notice of Intent to Garnish which includes a Garnishment Exemption form.

Request for Disclosure

If you receive a request for disclosure form, you have a duty to fill it out, and failure to do so can lead to further action by the judge—i.e. requesting that you appear to explain why you have not completed the form.

Notice of Intent to Garnish and  Garnishment Exemption Form

The garnishment exemption form, on the other hand, can work to your benefit and can guard against wage garnishment, if applicable, so it is always recommended to complete the form if any of the exemptions apply.

tHE GARNISHMENT SUMMONS & Wage Garnishment in MN

Once the creditor has determined your place of employment, it will send a Garnishment Summons to your employer. The summons will demand that the employer withhold twenty-five percent of your wages from each paycheck. The creditor is only allowed to garnish for a certain amount of time, then must take a break in case there are other creditors waiting in line. If not, the creditor can resume garnishment. This process can repeat until the creditor is paid in full.

CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT

If your wages are currently being garnished, or if you are under threat of imminent garnishment, and need a solution, please do not hesitate to reach out to Minnesota’s nicest bankruptcy law firm at www.kainscott.com for a free consultation to find out how we can help. We look forward to hearing from you and helping you put a stop to the threat of garnishment and get your life back!

 

Topics: Wage Garnishment

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