SF 33

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/09/2013 08:31am

A bill for an act
relating to judgments; providing a limitation period for actions arising out of
consumer debt; prohibiting imprisonment for contempt in consumer debt cases;
regulating assigned consumer debt default judgments; amending Minnesota
Statutes 2012, sections 491A.02, subdivision 9; 550.011; proposing coding for
new law in Minnesota Statutes, chapters 541; 548.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 491A.02, subdivision 9, is amended to read:

Subd. 9.

Judgment debtor disclosure.

Notwithstanding any contrary provision in
rule 518 of the Conciliation Court Rules, unless the parties have otherwise agreed, if a
conciliation court judgment or a judgment of district court on removal from conciliation
court has been docketed in district court, the judgment creditor's attorney as an officer of
the court may or the district court in the county in which the judgment originated shall,
upon request of the judgment creditor, order the judgment debtor to mail to the judgment
creditor information as to the nature, amount, identity, and locations of all the debtor's
assets, liabilities, and personal earning. The information must be provided on a form
prescribed by the Supreme Court, and the information shall be sufficiently detailed to
enable the judgment creditor to obtain satisfaction of the judgment by way of execution
on nonexempt assets and earnings of the judgment debtor. The order must contain a
notice that failure to complete the form and mail it to the judgment creditor within ten
days after service of the order may result in a citation for civil contempt of court. deleted text begin Cash
bail posted as a result of being cited for civil contempt of court order under this section
may be ordered payable to the creditor to satisfy the judgment, either partially or fully
deleted text end new text begin Notwithstanding section 588.02, civil contempt under this subdivision is punishable only
by fine and not imprisonment new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 2.

new text begin [541.053] LIMITATION OF ACTIONS BASED ON CONSUMER DEBT.
new text end

new text begin Notwithstanding section 541.05, subdivision 1, clause (1), actions upon an obligation
arising out of a consumer debt primarily for personal, family, or household purposes
must be commenced within six years. After its expiration, the statute of limitations is
not revived by the collection of a payment on an account, a discharge in a bankruptcy
proceeding, or an oral or written reaffirmation of the debt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end

Sec. 3.

new text begin [548.101] ASSIGNED CONSUMER DEBT DEFAULT JUDGMENTS.
new text end

new text begin A party entitled to a judgment by default in an action upon an assigned obligation
arising out of any consumer debt that is primarily for personal, family, or household
purposes and in default at the time of assignment shall apply to the court and submit, in
addition to the application for judgment:
new text end

new text begin (1) a copy of the written contract between the debtor and original creditor or, if there
was no written contract, other admissible evidence establishing the terms of the contract
between the debtor and the original creditor, including the moving party's entitlement to
the amounts described in clause (3);
new text end

new text begin (2) admissible evidence establishing that the defendant owes the debt;
new text end

new text begin (3) admissible evidence establishing that the amount claimed to be owed is accurate,
including an itemization of the balance owed at the time the debt was first assigned to
another party by the original creditor and a breakdown of post-assignment fees, interest,
and interest rates;
new text end

new text begin (4) documentation establishing a valid and complete chain of assignment of the debt
from the original creditor to the moving party, including documentation or a bill of sale
evidencing the assignment with proof that the particular debt at issue was included in the
assignment referenced in the documentation or bill of sale;
new text end

new text begin (5) proof that a summons and complaint were properly served on the debtor and that
the debtor did not serve a timely answer; and
new text end

new text begin (6) proof that the debtor was provided notice of the default judgment motion and
hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
motions for default judgment filed on or after August 1, 2013.
new text end

Sec. 4.

Minnesota Statutes 2012, section 550.011, is amended to read:

550.011 JUDGMENT DEBTOR DISCLOSURE.

Unless the parties have otherwise agreed, if a judgment has been docketed in district
court for at least 30 days, and the judgment is not satisfied, the judgment creditor's attorney
as an officer of the court may or the district court in the county in which the judgment
originated shall, upon 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 the debtor's assets, liabilities, and personal earnings. The information
must be provided on a form prescribed by the Supreme Court, and the information shall be
sufficiently detailed to enable the judgment creditor to obtain satisfaction of the judgment
by way of execution on nonexempt assets and earnings of the judgment debtor. The order
must contain a notice that failure to complete the form and mail it to the judgment creditor
within ten days after service of the order may result in a citation for civil contempt of
court. deleted text begin Cash bail posted as a result of being cited for civil contempt of court order under
this section may be ordered payable to the creditor to satisfy the judgment, either partially
or fully deleted text end new text begin Notwithstanding section 588.02, civil contempt under this section is punishable
only by fine and not imprisonment new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013.
new text end