Minnesota Legislature
HF 334
2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:36am
Current Version - 2nd Engrossment
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A bill for an act
relating to creditor remedies; modifying garnishment instructions, forms,
procedures, and exemptions; amending Minnesota Statutes 2008, sections
550.143; 550.37, subdivision 14; 551.05; 571.71; 571.72, by adding subdivisions;
571.911; 571.912; 571.913; 571.914; 571.925.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 550.143, is amended to read:
550.143 LEVY ON FUNDS AT A FINANCIAL INSTITUTION.
Subdivision 1.
Procedure.
When the sheriff is levying upon funds at a financial
institution, this section must be complied with, in addition to the general provisions set
forth in section 550.135.
Subd. 2.
Disclosure form.
Along with the writ of executionnew text begin , the notice, instructions,new text end
and the exemption notice described in subdivision 3, the sheriff shall serve upon the
financial institution an execution disclosure form which must be substantially in the
following form:
| STATE OF MINNESOTA |
DISTRICT COURT |
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COUNTY OF
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JUDICIAL DISTRICT
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(Judgment Creditor)
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| against |
FINANCIAL INSTITUTIONS |
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.
(Judgment Debtor)
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EXECUTION |
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| and |
DISCLOSURE |
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.
(Third Party)
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On the ..... day of ............., ......., the time of service of execution herein, there was
due and owing the judgment debtor from the third party the following:
(1) Money. Enter on the line below any amounts due and owing the judgment debtor,
except earnings, from the third party.
.
(2) Setoff. Enter on the line below the amount of any setoff, defense, lien, or claim
which the third party claims against the amount set forth on line (1). State the facts by
which such setoff, defense, lien, or claim is claimed. (Any indebtedness to a third party
incurred by the judgment debtor within ten days prior to the receipt of the first execution
levy on a debt is void as to the judgment creditor.)
.
(3) Exemption. Enter on the line below any amounts or property claimed by the
judgment debtor to be exempt from execution.
.
(4) Adverse Interest. Enter on the line below any amounts claimed by other persons
by reason of ownership or interest in the judgment debtor's property.
.
(5) Enter on the line below the total of lines (2), (3), and (4).
.
(6) Enter on the line below the difference obtained (never less than zero) when line
(5) is subtracted from the amount on line (1).
.
(7) Enter on the line below 110 percent of the amount of the judgment creditor's
claim which remains unpaid.
.
(8) Enter on the line below the lesser of line (6) and line (7). You are hereby
instructed to remit this amount only if it is $10 or more.
.
AFFIRMATION
I, ....................... (person signing Affirmation), am the third party or I am authorized
by the third party to complete this nonearnings disclosure, and have done so truthfully
and to the best of my knowledge.
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Dated:
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| Signature |
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| Title |
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| Telephone Number |
Subd. 3.
new text begin Notice, instructions, and new text end exemption notice.
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
new text begin a notice, instructions, and new text end two copies of an exemption notice, which must be substantially
in the form set forth below. The sheriff shall serve new text begin the notice, instructions, and new text end both copies
of the exemption notice on the financial institution, along with the writ of execution.
Failure of the sheriff to serve new text begin the notice, instructions, and new text end the exemption notices renders
the levy void, and the financial institution shall take no action. However, if this subdivision
is being used to execute on funds that have previously been garnished in compliance with
section 571.71, 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 executionnew text begin , notice, instructions,new text end and
exemption notices, the financial institution shall retain as much of the amount due under
section 550.04 as the financial institution has on deposit owing to the judgment debtor, but
not more than 110 percent of the amount remaining due on the judgment.
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deleted text begin
STATE OF MINNESOTA deleted text end |
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DISTRICT COURT deleted text end |
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COUNTY OF
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JUDICIAL DISTRICT
deleted text end |
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deleted text begin
.
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(Judgment Creditor) deleted text end |
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.
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(Judgment Debtor) deleted text end |
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TO: Debtor deleted text end |
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EXEMPTION NOTICE deleted text end |
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An order for attachment, garnishment summons, or levy of execution (strike
inapplicable language) has been served on ............. (Bank or other financial institution
where you have an account.)
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Your account balance is $........
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The amount being held is $........
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However, all or a portion of the funds in your account will normally be exempt from
creditors' claims if they are in one of the following categories:
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(1) relief based on need. This includes the Minnesota Family Investment Program
(MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA),
General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance;
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(2) Social Security benefits (Old Age, Survivors, or Disability Insurance);
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(3) unemployment benefits, workers' compensation, or veterans' benefits;
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(4) an accident, disability, or retirement pension or annuity;
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(5) life insurance proceeds;
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(6) the earnings of your minor child and any child support paid to you; or
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(7) money from a claim for damage or destruction of exempt property (such as
household goods, farm tools, business equipment, a mobile home, or a car).
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The following funds are also exempt:
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(8) all earnings of a person in category (1);
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(9) all earnings of a person who has received relief based on need, or who has been
an inmate of a correctional institution, within the last six months;
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(10) 75 percent of every debtor's after tax earnings; and
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(11) all of a judgment debtor's after tax earnings below 40 times the federal
minimum wage.
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deleted text begin
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
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Categories (10) and (11): 20 days
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Categories (8) and (9): 60 days
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deleted text begin
All others: no time limit, as long as funds are traceable to the exempt source. (In
tracing funds, the first-in, first-out method is used. This means money deposited first
is spent first.) The money being sought by the judgment creditor is being held in your
account to give you a chance to claim an exemption.
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TO CLAIM AN EXEMPTION:
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deleted text begin
Fill out, sign, and mail or deliver one copy of the attached exemption claim form to
the institution which sent you this notice and mail or deliver one copy to the judgment
creditor's attorney. In the event that there is no attorney for the judgment creditor, then
the notice shall be sent directly to the judgment creditor. The address for the judgment
creditor's attorney or the judgment creditor is set forth below. Both copies must be
mailed or delivered on the same day.
deleted text end
deleted text begin
NOTE: You may help resolve your claim faster if you send to the creditor's
attorney written proof or documents that show why your money is exempt. If
you have questions regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written proof and the creditor's
attorney has questions about your exemption claim, the creditor's attorney
may object to your claim which may result in a further delay in releasing your
exempt funds.
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deleted text begin
If the financial institution does not get the exemption claim back from you within 14
days of the date they mailed or gave it to you, they will be free to turn the money over to
the sheriff or the judgment creditor. If you are going to claim an exemption, do so as soon
as possible, because your money may be held until it is decided.
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IF YOU CLAIM AN EXEMPTION:
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(1) nonexempt money can be turned over to the judgment creditor or sheriff;
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(2) the financial institution will keep holding the money claimed to be exempt; and
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deleted text begin
(3) seven days after receiving your exemption claim, the financial institution will
release the money to you unless before then it receives an objection to your exemption
claim.
deleted text end
deleted text begin
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
deleted text end
deleted text begin
the institution will hold the money until a court decides if your exemption claim is
valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting
the exemption WITHIN TEN DAYS after the objection is personally served on you, or
within 13 days from the date the objection is mailed to you. You may wish to consult an
attorney at once if the creditor objects to your exemption claim.
deleted text end
deleted text begin
MOTION TO DETERMINE EXEMPTION:
deleted text end
deleted text begin
At any time after your funds have been held, you may ask for a court decision on the
validity of your exemption claim by filing a request for hearing which may be obtained
at the office of the court administrator of the above court.
deleted text end
deleted text begin
PENALTIES:
deleted text end
deleted text begin
If you claim an exemption in bad faith, or if the judgment creditor wrongly objects
to an exemption in bad faith, the court may order the person who acted in bad faith to pay
costs, actual damages, attorney fees, and an additional amount of up to $100.
deleted text end
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
Name and address of (Attorney for) Judgment Creditor deleted text end |
deleted text begin
EXEMPTION:
deleted text end
deleted text begin
(a) Amount of exemption claim.
deleted text end
deleted text begin
/ / I claim ALL the funds being held are exempt.
deleted text end
deleted text begin
/ / I claim SOME of the funds being held are exempt.
deleted text end
|
deleted text begin
The exempt amount is $
. deleted text end |
deleted text begin
(b) Basis for exemption.
deleted text end
deleted text begin
Of the 11 categories listed above, I am in category number ............ (If more than one
category applies, you may fill in as many as apply.) The source of the exempt funds is
the following:
deleted text end
|
deleted text begin
.
deleted text end |
|
deleted text begin
.
deleted text end |
|
deleted text begin
.
deleted text end |
deleted text begin
(If the source is a type of relief based on need, list the case number and county:
deleted text end
deleted text begin
case number: ...............;
deleted text end
deleted text begin
county: ....................)
deleted text end
deleted text begin
I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above named creditor or its attorney
only whether or not I am or have been a recipient of relief based on need or an inmate of a
correctional institute within the last six months.
deleted text end
deleted text begin
I have mailed or delivered a copy of the exemption notice to the judgment creditor
or judgment creditor's attorney if represented at the address indicated above.
deleted text end
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
DEBTOR deleted text end |
||
|
deleted text begin
DATED:
. deleted text end |
deleted text begin
.
deleted text end |
|
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
DEBTOR ADDRESS deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
DEBTOR TELEPHONE NUMBER deleted text end |
new text begin Subd. 3a. new text end
new text begin Form of notice. new text end
new text begin
The notice required by subdivision 3 must be provided as
a separate form and must be substantially in the following form:
new text end
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
new text end
new text begin
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
IMPORTANT NOTICE
new text end
new text begin
YOUR FUNDS HAVE BEEN LEVIED
new text end
new text begin
The Creditor has frozen money in your account at your financial institution.
new text end
new text begin
Your account balance is $.......
new text end
new text begin
The amount being held is $.......
new text end
new text begin
The amount being held will be frozen for 14 days from the date of this notice.
new text end
new text begin
Some of your money in your account may be protected (the legal word is
exempt). You may be able to get it sooner than 14 days if you act quickly and follow
the instructions on the next page.
new text end
new text begin
The attached exemption form lists some different sources of money in your account
that may be protected. If your money is from one or more of these sources, place a
check on the line on the form next to the sources of your money. If it is from one of
these sources, the Creditor cannot take it.
new text end
new text begin
BUT, you must follow the instructions and return the exemption form and
copies of your bank statements from the last 60 days to have the bank unfreeze your
money. If you do not follow the instructions, your financial institution will give the money
to the Sheriff. If that happens and it is protected, you can still get it back from the Creditor
later, but that is not as easy to do as filling in the form now.
new text end
new text begin
See next pages for instructions and the exemption form.
new text end
new text begin Subd. 3b. new text end
new text begin Form of instructions. new text end
new text begin
The instructions required by this section must be
in a separate form and must be substantially in the following form:
new text end
new text begin
INSTRUCTIONS
new text end
new text begin
Note: The creditor is who you owe the money to. You are the debtor.
new text end
new text begin
1. Fill out both of the attached exemption forms in this packet.
new text end
new text begin
If you check one of the lines, you should also give proof that shows that some
or all of the money in your account is from one or more of the protected sources.
Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
new text end
new text begin
Case numbers should be added to the form. Copies of documents should be
sent with the form.
new text end
new text begin
NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
statements in case there are questions about your claim. If you do not send to the
creditor's attorney (or to the creditor, if no attorney) bank statements with your
exemption claim, the financial institution may release your money to the sheriff.
new text end
new text begin
2. Sign the exemption forms. Make one copy to keep for yourself.
new text end
new text begin
3. Mail or deliver the other copies of the form by (insert date).
new text end
new text begin
BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
new text end
new text begin
One copy of the form and the copies of your bank statements go to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
One copy goes to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of bank) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of bank) new text end |
new text begin
HOW THE PROCESS WORKS
new text end
new text begin
If You Do Not Send in the Exemption Form and Bank Statements:
new text end
new text begin
14 days after the date of this letter some or all of your money may be turned over
to the creditor or to the sheriff.
new text end
new text begin
If You Send in the Exemption Form and Bank Statements:
new text end
new text begin
Any money that is NOT protected can be turned over to the sheriff.
new text end
new text begin
If the Creditor Does Not Object:
new text end
new text begin
The financial institution will unfreeze your money six business days after the
institution gets your completed form.
new text end
new text begin
If the Creditor Objects:
new text end
new text begin
The money you have said is protected on the form will be held by the bank. The
creditor has six business days to object (disagree) and ask the court to hold a hearing. You
will receive a Notice of Objection and a Notice of Hearing.
new text end
new text begin
The financial institution will hold the money until a court decides whether your
money is protected or not. Some reasons a creditor may object are because you did not
send copies of your bank statements or other proof of the benefits you received. Be sure to
include these when you send your exemption form.
new text end
new text begin
You may want to talk to a lawyer for advice about this process. If you are low
income you can call Legal Aid.
new text end
new text begin
PENALTIES:
new text end
new text begin
If you claim that your money is protected and a court decides you made that claim
in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
additional amount of up to $100. For example, it may be bad faith if you claim you receive
government benefits that you do not receive.
new text end
new text begin
If the creditor made a bad faith objection to your claim that your money is protected,
the court can order them to pay costs, actual damages, attorney fees, and an additional
amount of up to $100.
new text end
new text begin Subd. 3c. new text end
new text begin Form of exemption form. new text end
new text begin
The exemption form required by this
subdivision must be sent as a separate form and must be in substantially the following
form:
new text end
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
EXEMPTION FORM
new text end
|
new text begin
A. new text end |
new text begin
HOW MUCH MONEY IS PROTECTED new text end |
|
|
new text begin
.
new text end |
new text begin
I claim ALL of the money being frozen by the bank is protected. new text end |
|
|
new text begin
.
new text end |
new text begin
I claim SOME of the money is protected. The amount I claim is protected is $....... new text end |
|
|
new text begin
B. new text end |
new text begin
WHY THE MONEY IS PROTECTED new text end |
|
|
new text begin
My money is protected because I get it from one or more of the following places: (Check all that apply) new text end |
||
|
new text begin
.
new text end |
new text begin
Government benefits new text end |
|
|
new text begin
Government benefits include, but are not limited to, the following: new text end |
||
|
new text begin
new text begin MFIPnew text end - Minnesota family investment program, new text end |
||
|
new text begin
MFIP Diversionary Work Program, new text end |
||
|
new text begin
new text begin Work participation cash benefit,new text end new text end |
||
|
new text begin
new text begin GAnew text end - general assistance, new text end |
||
|
new text begin
new text begin EAnew text end - emergency assistance, new text end |
||
|
new text begin
new text begin MAnew text end - medical assistance, new text end |
||
|
new text begin
new text begin GAMCnew text end - general assistance medical care, new text end |
||
|
new text begin
new text begin EGAnew text end - emergency general assistance, new text end |
||
|
new text begin
new text begin MSAnew text end - Minnesota supplemental aid, new text end |
||
|
new text begin
new text begin MSA-EAnew text end - MSA emergency assistance, new text end |
||
|
new text begin
Food Support, new text end |
||
|
new text begin
SSI - Supplemental Security Income, new text end |
||
|
new text begin
MinnesotaCare, new text end |
||
|
new text begin
Medicare part B premium payments, new text end |
||
|
new text begin
Medicare part D extra help, new text end |
||
|
new text begin
Energy or fuel assistance. new text end |
||
|
new text begin
LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end |
||
|
new text begin
.
new text end |
||
|
new text begin
LIST THE CASE NUMBER AND COUNTY new text end |
||
|
new text begin
Case Number:
. new text end |
||
|
new text begin
County:
. new text end |
||
|
new text begin
Government benefits also include: new text end |
||
|
new text begin
.
new text end |
new text begin
Social Security benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Unemployment benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Workers' compensation new text end |
|
|
new text begin
.
new text end |
new text begin
Veterans benefits new text end |
|
|
new text begin
If you receive any of these government benefits, include copies of any documents you have that show you receive Social Security, unemployment, workers' compensation, or veterans benefits. new text end |
||
|
new text begin
.
new text end |
new text begin
Other assistance based on need new text end |
|
new text begin
You may have assistance based on need from another source that is not on the list. If you
do, check this box, and fill in the source of your money on the line below:
new text end
new text begin
Source:
.
new text end
new text begin
Include copies of any documents you have that show the source of this money.
new text end
|
new text begin
EARNINGS new text end |
||
|
new text begin
ALL or SOME of your earnings (wages) may also be protected. new text end |
||
|
new text begin
.
new text end |
new text begin
All of your earnings (wages) are protected if: new text end |
|
|
new text begin
.
new text end |
new text begin
You get government benefits (see list of government benefits) new text end |
|
|
new text begin
.
new text end |
new text begin
You currently receive other assistance based on need new text end |
|
|
new text begin
.
new text end |
new text begin
You have received government benefits in the last six months new text end |
|
|
new text begin
.
new text end |
new text begin
You were in jail or prison in the last six months new text end |
|
|
new text begin
new text begin If you check one of these lines,new text end your wages are only protected for 60 days after they are deposited in your account so you MUST send the creditor a copy of BANK STATEMENTS that show what was in your account for the 60 days right before the bank froze your money. new text end |
||
|
new text begin
.
new text end |
new text begin
Some of your earnings (wages) are protected. new text end |
|
|
new text begin
If all of your earnings are not exempt, then some of your earnings are still protected for 20 days after they were deposited in your account. The amount protected is the larger amount of: new text end |
||
|
new text begin
75 percent of your wages (after taxes are taken out); or new text end |
||
|
new text begin
(insert the sum of the current federal minimum wage) multiplied by 40. new text end |
||
|
new text begin
OTHER EXEMPT FUNDS new text end |
||
|
new text begin
The money from the following are also completely protected after they are deposited in your account. new text end |
||
|
new text begin
.
new text end |
new text begin
An accident, disability, or retirement pension or annuity new text end |
|
|
new text begin
.
new text end |
new text begin
Payments to you from a life insurance policy new text end |
|
|
new text begin
.
new text end |
new text begin
Earnings of your child who is under 18 years of age new text end |
|
|
new text begin
.
new text end |
new text begin
Child support new text end |
|
|
new text begin
.
new text end |
new text begin
new text begin Money paid to you from a claim for damage or destruction of propertynew text end Property includes household goods, farm tools or machinery, tools for your job, business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes, furniture, or appliances. new text end |
|
|
new text begin
.
new text end |
new text begin
Death benefits paid to you new text end |
|
new text begin
I give permission to any agency that has given me cash benefits to give information
about my benefits to the above-named creditor, or its attorney. The information will ONLY
concern whether I get benefits or not, or whether I have gotten them in the past six months.
new text end
new text begin
If I was an inmate in the last six months, I give my permission to the correctional
institution to tell the above-named creditor that I was an inmate there.
new text end
new text begin
YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
new text end
new text begin
I have mailed or delivered a copy of this form to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
I have also mailed or delivered a copy of this exemption form to my bank at the
address listed in the instructions.
new text end
|
new text begin
DATED:
. new text end |
new text begin
.
new text end |
|
new text begin
DEBTOR new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR ADDRESS new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR TELEPHONE NUMBER new text end |
Subd. 4.
Effect of exemption notice.
Within two business days after receipt of the
writ of execution deleted text begin anddeleted text end new text begin , notice, instructions, and two copies of thenew text end exemption deleted text begin noticesdeleted text end new text begin noticenew text end ,
the financial institution shall serve upon the judgment debtor new text begin the notice, instructions,
and new text end two copies of the exemption notice. The financial institution shall serve deleted text begin the noticedeleted text end
new text begin these forms new text end by first class mail to the last known address of the judgment debtor. If no
claim of exemption is received by the financial institution within 14 days after the new text begin notice,
instructions, and new text end exemption notices are mailed to the judgment debtor, the funds remain
subject to the execution levy and shall be remitted to the sheriff within deleted text begin sevendeleted text end new text begin six businessnew text end
days. If the judgment debtor elects to claim an exemption, the judgment debtor shall
complete the exemption notice, sign it under penalty of perjury, and deliver one copy to
the financial institution and one copy to the attorney for the judgment creditor within
14 days of the date postmarked on the correspondence mailed to the debtor containing
the exemption notices.new text begin The judgment debtor is also required to include copies of bank
statements for the prior 60 days with the exemption notice delivered to the attorney for the
judgment creditor.new text end In the event that there is no attorney for the judgment creditor, then the
notice new text begin and bank statements new text end must be sent directly to the judgment creditor. Failure of the
judgment debtor to deliver the executed exemption noticenew text begin or copies of the required bank
statements for the prior 60 daysnew text end does not constitute a waiver of any claimed right to an
exemption. Upon timely receipt of a claim of exemption, funds not claimed to be exempt
by the debtor remain subject to the execution levy. All money claimed to be exempt shall
be released to the judgment debtor upon the expiration of deleted text begin sevendeleted text end new text begin six businessnew text end days after
the date postmarked on the envelope containing the executed exemption notice mailed to
the financial institution, or the date of personal delivery of the executed exemption notice
to the financial institution, unless within that time the judgment creditor interposes an
objection to the exemption.
Subd. 5.
Objection deleted text begin to exemption claimdeleted text end new text begin and request for hearingnew text end .
new text begin (a) An new text end objection
shall be interposednew text begin within six business days of receipt by the creditor of an exemption
claim from the debtor,new text end by mailing or delivering one copy of the deleted text begin written objectiondeleted text end new text begin Notice of
Objection and Notice of Hearingnew text end to the financial institution and one copy of the deleted text begin written
objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end to the judgment debtor deleted text begin along with a
copy of the judgment debtor's claimed exemption form. Both copies of an objection to an
exemption claim shall be mailed or delivered on the same datedeleted text end . The financial institution
may rely on the date of mailing or delivery of a notice to it in computing any time periods
in this section. The deleted text begin written objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end must be
substantially in the form specified in subdivision 7.
new text begin
(b) The court administrator may charge a fee of $1 for the filing of a Notice of
Objection and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of
Hearing, the court administrator shall schedule the matter for hearing no sooner than five
business days but no later than seven business days from the date of filing. A debtor may
request continuance of the hearing by notifying the creditor and the court. The court shall
schedule the continued hearing within seven days of the original hearing date.
new text end
new text begin
(c) An order stating whether the debtor's funds are exempt must be issued by the
court within three days of the date of the hearing.
new text end
Subd. 6.
Duties of financial institution if objection is made to exemption claim.
Upon receipt of a deleted text begin written objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end from
the deleted text begin judgmentdeleted text end creditor or its attorney within the specified deleted text begin seven-daydeleted text end new text begin six-daynew text end period, the
financial institution shall retain the funds claimed to be exempt. deleted text begin Unless the financial
institution receives a request for hearing and notice of hearing from the judgment debtor
asserting exemption rights within ten days after receipt of a written objection to the
exemption, the funds remain subject to the execution levy as if no claim of exemption
had been made and shall be remitted to the sheriff within seven days. If a request for
hearing and notice of hearing to determine the validity of a claim of exemption is received
by the financial institution within the period provided, itdeleted text end new text begin The financial institutionnew text end shall
retain the funds claimed to be exempt until otherwise ordered by the courtnew text begin or upon mutual
agreement of the partiesnew text end .
Subd. 7.
new text begin Form of new text end Notice of Objectionnew text begin and Notice of Hearingnew text end .
(a) The deleted text begin written
objection to the judgment debtor's claim of exemptiondeleted text end new text begin Written Objection and Notice of
Hearing new text end must be in substantially the following form:
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
||||
|
deleted text begin
COUNTY OF
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
||||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Creditor) deleted text end |
deleted text begin
OBJECTION TO deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Debtor) deleted text end |
deleted text begin
EXEMPTION CLAIM deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Garnishee) (Third Party) deleted text end |
||||
deleted text begin
The judgment creditor objects to your claim for exemption from garnishment,
levy of execution, order for attachment (strike inapplicable language) for the following
reason(s):
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
Because of this objection, your financial institution will retain the funds you claimed
to be exempt for an additional ten days. If you wish to request a hearing on your exemption
claim, you need to do so within ten days from the date the objection was personally served
on you, or within 13 days of the date the objection was mailed to you. You may request a
hearing by completing the attached form and filing it with the court administrator.
deleted text end
deleted text begin
1. The court administrator's office shall provide clerical assistance to help with the
writing and filing of a Request for Hearing by any person not represented by counsel. The
court administrator may charge a fee of $1 for the filing of a Request for Hearing.
deleted text end
deleted text begin
2. Upon the filing of a Request for Hearing, the court administrator shall schedule
the matter for a hearing no later than five business days from the date of filing. The court
administrator shall forthwith send a completed copy of the request, including the hearing
date, time, and place to the adverse party and to the financial institution by first class mail.
deleted text end
deleted text begin
3. If it is possible that the financial institution might not receive the request mailed
from the court administrator within ten days, then you may want to personally deliver a
copy of the request to the financial institution after you have filed your request with the
court.
deleted text end
deleted text begin
4. An order stating whether your funds are exempt shall be issued by the court
within three days of the date of the hearing.
deleted text end
deleted text begin
If you do not file a Request for Hearing within ten days of the date the objection was
personally served on you, or within 13 days from the date the objection was mailed to you,
your financial institution may turn your funds over to your creditor.
deleted text end
deleted text begin
If you file a Request for Hearing and your financial institution receives it within ten
days of the date it received this objection, your financial institution will retain your funds
claimed to be exempt until otherwise ordered by the court.
deleted text end
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
Judgment Creditor or Attorney deleted text end |
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
|||||
|
new text begin
(Creditor) new text end |
|||||
|
new text begin
CREDITOR'S NOTICE OF OBJECTION AND NOTICE OF HEARING ON EXEMPTION CLAIM new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
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(Financial Institution) new text end |
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(DEBTOR) new text end |
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ADDRESS new text end |
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(CREDITOR OR CREDITOR'S ATTORNEY) new text end |
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NOTICE OF HEARING new text end |
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new text begin
The creditor objects to your exemption claim. This hearing is to resolve your exemption claim. new text end |
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Hearing Date: new text end |
new text begin
.
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Time: new text end |
new text begin
.
new text end |
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new text begin
Hearing Place: new text end |
new text begin
.
new text end |
new text begin
The creditor objects to your claim of exemption from levy of execution for the
following reason(s):
new text end
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new text begin
.
new text end |
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new text begin
.
new text end |
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new text begin
.
new text end |
new text begin
(Note: Bring with you to the hearing all documents and materials supporting
your exemption claim. Failure to do so could delay the court's decision.)
new text end
new text begin
If the creditor receives all documents and materials supporting your exemption
claim before the hearing date, the creditor may agree with your exemption claim and
you might still be able to avoid a hearing.
new text end
new text begin
Because a court hearing will be held on your claim that your funds are protected,
your financial institution will retain the funds until it receives an order from the court or
upon mutual agreement between you and your creditor.
new text end
deleted text begin Subd. 8. deleted text end
deleted text begin Request for hearing and notice for hearing. deleted text end
deleted text begin
The request for hearing
accompanying the objection notice must be in substantially the following form:
deleted text end
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
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deleted text begin
COUNTY OF
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
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deleted text begin
.
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(Judgment Creditor) deleted text end |
deleted text begin
REQUEST FOR HEARING deleted text end |
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deleted text begin
.
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deleted text begin
(Judgment Debtor) deleted text end |
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AND deleted text end |
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deleted text begin
.
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deleted text begin
(Third Party) deleted text end |
deleted text begin
NOTICE FOR HEARING deleted text end |
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deleted text begin
I hereby request a hearing to resolve the exemption claim which has been made
in this case regarding funds in the account of ............. (Judgment Debtor) at the .........
(Financial Institution).
deleted text end
deleted text begin
I believe the property being held is exempt because
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
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Dated:
. deleted text end |
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(JUDGMENT DEBTOR) deleted text end |
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(ADDRESS) deleted text end |
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(DEBTOR PHONE NUMBER) deleted text end |
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deleted text begin
.
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HEARING DATE:
. deleted text end |
deleted text begin
TIME:
. deleted text end |
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HEARING PLACE:
. deleted text end |
deleted text begin
(Note to both parties: Bring with you to the hearing all documents and materials
relevant to the exemption claim and objection. Failure to do so could delay the court's
decision.)
deleted text end
Subd. 9.
Release of funds.
At any time during the procedure specified in this
section, the judgment debtor or the judgment creditor may, by a writing dated after the
service of the execution, direct the sheriff new text begin or the financial institution new text end to release the funds in
question to the other party. Upon receipt of a release, the sheriff new text begin or the financial institution
new text end shall release the funds as directed.
Subd. 10.
Subsequent proceedings; bad faith claims.
If in subsequent proceedings
brought by the judgment debtor or the judgment creditor, the claim of exemption is not
upheld, and the court finds that it was asserted in bad faith, the judgment creditor shall be
awarded actual damages, costs, and reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
the court finds that the judgment creditor disregarded the claim of exemption in bad faith,
the judgment debtor shall be awarded costs, reasonable attorney fees, actual damages, and
an amount not to exceed $100. The underlying judgment must be modified to reflect
assessment of damages, costs, and attorney fees. However, if the party in whose favor a
penalty assessment is made is not actually indebted to the party's attorney for fees, the
attorney's fee award shall be made directly to the attorney and, if not paid, an appropriate
judgment in favor of the attorney shall be entered. Upon motion of any party in interest,
on notice, the court shall determine the validity of any claim of exemption, and may make
any order necessary to protect the rights of those interested. No financial institution is
liable for damages for complying with this section. Both copies of an exemption claim
or an objection to an exemption claim must be mailed or delivered on the same date.
The financial institution may rely on the date of mailing or delivery of a notice to it in
computing any time periods in this section.
Sec. 2.
Minnesota Statutes 2008, section 550.37, subdivision 14, is amended to read:
Subd. 14.
Public assistance.
All deleted text begin reliefdeleted text end new text begin government assistancenew text end based on need,
and the earnings or salary of a person who is a recipient of deleted text begin reliefdeleted text end new text begin government assistancenew text end
based on need, shall be exempt from all claims of creditors including any contractual
setoff or security interest asserted by a financial institution. For the purposes of this
chapter, deleted text begin reliefdeleted text end new text begin government assistance new text end based on need includes deleted text begin MFIP, work first, general
assistance medical care, supplemental security income, medical assistance, Minnesota
supplemental assistance, and general assistancedeleted text end new text begin but is not limited to Minnesota family
investment program, general assistance medical care, Supplemental Security Income,
medical assistance, MinnesotaCare, payment of Medicare part B premiums or receipt of
part D extra help, MFIP diversionary work program, work participation cash benefit,
Minnesota supplemental assistance, emergency Minnesota supplemental assistance,
general assistance, emergency general assistance, emergency assistance or county crisis
funds, energy or fuel assistance, and food supportnew text end . The salary or earnings of any debtor
who is or has been an eligible recipient of deleted text begin reliefdeleted text end new text begin government assistancenew text end based on need, or
an inmate of a correctional institution shall, upon the debtor's return to private employment
or farming after having been an eligible recipient of deleted text begin reliefdeleted text end new text begin government assistancenew text end based on
need, or an inmate of a correctional institution, be exempt from attachment, garnishment,
or levy of execution for a period of six months after the debtor's return to employment or
farming and after all public assistance for which eligibility existed has been terminated.
The exemption provisions contained in this subdivision also apply for 60 days after deposit
in any financial institution, whether in a single or joint account. In tracing the funds, the
first-in first-out method of accounting shall be used. The burden of establishing that funds
are exempt rests upon the debtor. Agencies distributing deleted text begin reliefdeleted text end new text begin government assistancenew text end and
the correctional institutions shall, at the request of creditors, inform them whether or not
any debtor has been an eligible recipient of deleted text begin reliefdeleted text end new text begin government assistancenew text end based on need, or
an inmate of a correctional institution, within the preceding six months.
Sec. 3.
Minnesota Statutes 2008, section 551.05, is amended to read:
551.05 ATTORNEY'S SUMMARY EXECUTION UPON FUNDS AT A
FINANCIAL INSTITUTION.
Subdivision 1.
Procedure.
When levying upon funds at a financial institution,
this section must be complied with, in addition to the general provisions specified in
section 551.04.
Subd. 1a.
new text begin Notice, instructions, and new text end exemption notice.
If the writ of execution is
being used by the attorney to levy 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 attorney for the
judgment creditor shall serve with the writ of execution new text begin a notice, instructions, and new text end two
copies of an exemption notice. The noticenew text begin , instructions, and exemption noticenew text end must be
substantially in the form set forth below. Failure of the attorney for the judgment creditor
to send deleted text begin the exemption noticedeleted text end new text begin these forms new text end renders the execution levy void, and the financial
institution shall take no action. However, if this subdivision is being used to execute on
funds that have previously been garnished in compliance with section 571.71, the attorney
for judgment creditor is not required to serve an additional exemption notice. 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 section 550.04 as the financial
institution has on deposit owing to the judgment debtor, but not more than 100 percent of
the amount remaining due on the judgment, or $10,000, whichever is less.
new text begin Subd. 1b. new text end
new text begin Form of notice. new text end
The notice deleted text begin informing a judgment debtor that an
execution levy has been used to attach funds of the judgment debtor to satisfy a claimdeleted text end
new text begin must be a separate form and new text end must be substantially in the following form:
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
||||
|
deleted text begin
County of
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
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|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Creditor) deleted text end |
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|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Debtor) deleted text end |
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|
deleted text begin
TO: Judgment Debtor deleted text end |
deleted text begin
EXEMPTION NOTICE deleted text end |
||||
deleted text begin
An order for attachment, garnishment summons, or levy of execution (strike
inapplicable language) has been served on ............. (bank or other financial institution
where you have an account).
deleted text end
deleted text begin
Your account balance is $........
deleted text end
deleted text begin
The amount being held is $........
deleted text end
deleted text begin
However, all or a portion of the funds in your account will normally be exempt from
creditors' claims if they are in one of the following categories:
deleted text end
deleted text begin
(1) relief based on need. This includes the Minnesota Family Investment Program
(MFIP), Work First Program, Medical Assistance (MA), General Assistance (GA),
General Assistance Medical Care (GAMC), Emergency General Assistance (EGA),
Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),
Supplemental Security Income (SSI), and Energy Assistance;
deleted text end
deleted text begin
(2) Social Security benefits (Old Age, Survivors, or Disability Insurance);
deleted text end
deleted text begin
(3) unemployment benefits, workers' compensation, or veterans' benefits;
deleted text end
deleted text begin
(4) an accident, disability, or retirement pension or annuity;
deleted text end
deleted text begin
(5) life insurance proceeds;
deleted text end
deleted text begin
(6) the earnings of your minor child and any child support paid to you; or
deleted text end
deleted text begin
(7) money from a claim for damage or destruction of exempt property (such as
household goods, farm tools, business equipment, a mobile home, or a car).
deleted text end
deleted text begin
The following funds are also exempt:
deleted text end
deleted text begin
(8) all earnings of a person in category (1);
deleted text end
deleted text begin
(9) all earnings of a person who has received relief based on need, or who has been
an inmate of a correctional institution, within the last six months;
deleted text end
deleted text begin
(10) 75 percent of every judgment debtor's after tax earnings; or
deleted text end
deleted text begin
(11) all of a judgment debtor's after tax earnings below 40 times the federal
minimum wage.
deleted text end
deleted text begin
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
deleted text end
deleted text begin
Categories (10) and (11): 20 days
deleted text end
deleted text begin
Categories (8) and (9): 60 days
deleted text end
deleted text begin
All others: no time limit, as long as funds are traceable to the exempt source. (In
tracing funds, the first-in, first-out method is used. This means money deposited first
is spent first.) The money being sought by the judgment creditor is being held in your
account to give you a chance to claim an exemption.
deleted text end
deleted text begin
TO CLAIM AN EXEMPTION:
deleted text end
deleted text begin
Fill out, sign, and mail or deliver one copy of the attached exemption claim form to
the institution which sent you this notice and mail or deliver one copy to the judgment
creditor's attorney. The address for the judgment creditor's attorney is set forth below.
Both copies must be mailed or delivered on the same day.
deleted text end
deleted text begin
NOTE: You may help resolve your claim faster if you send to the creditor's
attorney written proof or documents that show why your money is exempt. If
you have questions regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written proof and the creditor's
attorney has questions about your exemption claim, the creditor's attorney
may object to your claim which may result in a further delay in releasing your
exempt funds.
deleted text end
deleted text begin
If they do not get the exemption claim back from you within 14 days of the date
they mailed or gave it to you, they will be free to turn the money over to the attorney for
the judgment creditor. If you are going to claim an exemption, do so as soon as possible,
because your money may be held until it is decided.
deleted text end
deleted text begin
IF YOU CLAIM AN EXEMPTION:
deleted text end
deleted text begin
(1) nonexempt money can be turned over to the judgment creditor or sheriff;
deleted text end
deleted text begin
(2) the financial institution will keep holding the money claimed to be exempt; and
deleted text end
deleted text begin
(3) seven days after receiving your exemption claim, the financial institution will
release the money to you unless before then it receives an objection to your exemption
claim.
deleted text end
deleted text begin
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
deleted text end
deleted text begin
the institution will hold the money until a court decides if your exemption claim is
valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting the
exemption WITHIN TEN DAYS after the objection is personally served on you, or within
13 days from the date the objection is mailed to you. You may wish to consult an attorney
at once if the judgment creditor objects to your exemption claim.
deleted text end
deleted text begin
MOTION TO DETERMINE EXEMPTION:
deleted text end
deleted text begin
At any time after your funds have been held, you may ask for a court decision on the
validity of your exemption claim by filing a request for hearing which may be obtained
at the office of the court administrator of the above court.
deleted text end
deleted text begin
PENALTIES:
deleted text end
deleted text begin
If you claim an exemption in bad faith, or if the judgment creditor wrongly objects
to an exemption in bad faith, the court may order the person who acted in bad faith to pay
costs, actual damages, attorney fees, and an additional amount of up to $100.
deleted text end
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.
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deleted text begin
Name and address of (Attorney for) Judgment Creditor deleted text end |
deleted text begin
EXEMPTION:
deleted text end
deleted text begin
(a) Amount of exemption claim.
deleted text end
deleted text begin
/ / I claim ALL the funds being held are exempt.
deleted text end
deleted text begin
/ / I claim SOME of the funds being held are exempt.
deleted text end
|
deleted text begin
The exempt amount is $
. deleted text end |
deleted text begin
(b) Basis for exemption.
deleted text end
deleted text begin
Of the 11 categories listed above, I am in category number ............ (If more than one
category applies, you may fill in as many as apply.) The source of the exempt funds is
the following:
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
(If the source is a type of relief based on need, list the case number and county:
deleted text end
deleted text begin
case number: ...............;
deleted text end
deleted text begin
county: ....................)
deleted text end
deleted text begin
I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above named judgment creditor's
attorney only whether or not I am or have been a recipient of relief based on need or an
inmate of a correctional institute within the last six months.
deleted text end
deleted text begin
I have mailed or delivered a copy of the exemption notice to the judgment creditor's
attorney at the address indicated above.
deleted text end
|
deleted text begin
.
deleted text end |
||
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deleted text begin
DEBTOR deleted text end |
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deleted text begin
DATED:
. deleted text end |
deleted text begin
.
deleted text end |
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.
deleted text end |
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deleted text begin
.
deleted text end |
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DEBTOR ADDRESS deleted text end |
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deleted text begin
.
deleted text end |
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deleted text begin
DEBTOR TELEPHONE NUMBER deleted text end |
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
IMPORTANT NOTICE
new text end
new text begin
YOUR FUNDS HAVE BEEN LEVIED
new text end
new text begin
The Creditor has frozen money in your account at your financial institution.
new text end
new text begin
Your account balance is $.......
new text end
new text begin
The amount being held is $.......
new text end
new text begin
The amount being held will be frozen for 14 days from the date of this notice.
new text end
new text begin
Some of your money in your account may be protected (the legal word is
exempt). You may be able to get it sooner than 14 days if you act quickly and follow
the instructions on the next page.
new text end
new text begin
The attached exemption form lists some different sources of money in your account
that may be protected. If your money is from one or more of these sources, place a
check on the line on the form next to the sources of your money. If it is from one of
these sources, the Creditor cannot take it.
new text end
new text begin
BUT, you must follow the instructions and return the exemption form and
copies of your bank statements from the last 60 days to have the bank unfreeze your
money. If you do not follow the instructions, your financial institution will give the money
to the Creditor. If that happens and it is protected, you can still get it back from the
Creditor later, but that is not as easy to do as filling in the form now.
new text end
new text begin
See next pages for instructions and the exemption form.
new text end
new text begin Subd. 1c. new text end
new text begin Form of instructions. new text end
new text begin
The instructions required must be in a separate
form and must be substantially in the following form:
new text end
new text begin
INSTRUCTIONS
new text end
new text begin
Note: The creditor is who you owe the money to. You are the debtor.
new text end
new text begin
1. Fill out both of the attached exemption forms in this packet.
new text end
new text begin
If you check one of the lines, you should also give proof that shows that some
or all of the money in your account is from one or more of the protected sources.
Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
new text end
new text begin
Case numbers should be added to the form. Copies of documents should be
sent with the form.
new text end
new text begin
NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
statements in case there are questions about your claim. If you do not send to the
creditor's attorney (or to the creditor, if no attorney) bank statements with your
exemption claim, the financial institution may release your money to the creditor.
new text end
new text begin
2. Sign the exemption forms. Make one copy to keep for yourself.
new text end
new text begin
3. Mail or deliver the other copies of the form by (insert date).
new text end
new text begin
BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
new text end
new text begin
One copy of the form and the copies of your bank statements go to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
One copy goes to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of bank) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of bank) new text end |
new text begin
HOW THE PROCESS WORKS
new text end
new text begin
If You Do Not Send in the Exemption Form and Bank Statements:
new text end
new text begin
14 days after the date of this letter some or all of your money may be turned over to
the creditor pursuant to Minnesota statute.
new text end
new text begin
If You Send in the Exemption Form and Bank Statements:
new text end
new text begin
Any money that is NOT protected can be turned over to the creditor.
new text end
new text begin
If the Creditor Does Not Object:
new text end
new text begin
The financial institution will unfreeze your money six business days after the
institution gets your completed form.
new text end
new text begin
If the Creditor Objects:
new text end
new text begin
The money you have said is protected on the form will be held by the bank. The
creditor has six business days to object (disagree) and ask the court to hold a hearing. You
will receive a Notice of Objection and a Notice of Hearing.
new text end
new text begin
The financial institution will hold the money until a court decides whether your
money is protected or not. Some reasons a creditor may object are because you did not
send copies of your bank statements or other proof of the benefits you received. Be sure to
include these when you send your exemption form.
new text end
new text begin
You may want to talk to a lawyer for advice about this process. If you are low
income you can call Legal Aid.
new text end
new text begin
PENALTIES:
new text end
new text begin
If you claim that your money is protected and a court decides you made that claim
in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
additional amount of up to $100. For example, it may be bad faith if you claim you receive
government benefits that you do not receive.
new text end
new text begin
If the creditor made a bad faith objection to your claim that your money is protected,
the court can order them to pay costs, actual damages, attorney fees, and an additional
amount of up to $100.
new text end
new text begin Subd. 1d. new text end
new text begin Form of exemption form. new text end
new text begin
The exemption form required by this
subdivision must be a separate form and must be in substantially the following form:
new text end
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
EXEMPTION FORM
new text end
|
new text begin
A. new text end |
new text begin
HOW MUCH MONEY IS PROTECTED new text end |
|
|
new text begin
.
new text end |
new text begin
I claim ALL of the money being frozen by the bank is protected. new text end |
|
|
new text begin
.
new text end |
new text begin
I claim SOME of the money is protected. The amount I claim is protected is $....... new text end |
|
|
new text begin
B. new text end |
new text begin
WHY THE MONEY IS PROTECTED new text end |
|
|
new text begin
My money is protected because I get it from one or more of the following places: (Check all that apply) new text end |
||
|
new text begin
.
new text end |
new text begin
Government benefits new text end |
|
|
new text begin
Government benefits include, but are not limited to, the following: new text end |
||
|
new text begin
new text begin MFIPnew text end - Minnesota family investment program, new text end |
||
|
new text begin
MFIP Diversionary Work Program, new text end |
||
|
new text begin
new text begin Work participation cash benefit,new text end new text end |
||
|
new text begin
new text begin GAnew text end - general assistance, new text end |
||
|
new text begin
new text begin EAnew text end - emergency assistance, new text end |
||
|
new text begin
new text begin MAnew text end - medical assistance, new text end |
||
|
new text begin
new text begin GAMCnew text end - general assistance medical care, new text end |
||
|
new text begin
new text begin EGAnew text end - emergency general assistance, new text end |
||
|
new text begin
new text begin MSAnew text end - Minnesota supplemental aid, new text end |
||
|
new text begin
new text begin MSA-EAnew text end - MSA emergency assistance, new text end |
||
|
new text begin
Food Support, new text end |
||
|
new text begin
SSI - Supplemental Security Income, new text end |
||
|
new text begin
MinnesotaCare, new text end |
||
|
new text begin
Medicare part B premium payments, new text end |
||
|
new text begin
Medicare part D extra help, new text end |
||
|
new text begin
Energy or fuel assistance. new text end |
||
|
new text begin
LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end |
||
|
new text begin
.
new text end |
||
|
new text begin
LIST THE CASE NUMBER AND COUNTY new text end |
||
|
new text begin
Case Number:
. new text end |
||
|
new text begin
County:
. new text end |
||
|
new text begin
Government benefits also include: new text end |
||
|
new text begin
.
new text end |
new text begin
Social Security benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Unemployment benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Workers' compensation new text end |
|
|
new text begin
.
new text end |
new text begin
Veterans benefits new text end |
|
|
new text begin
If you receive any of these government benefits, include copies of any documents you have that show you receive Social Security, unemployment, workers' compensation, or veterans benefits. new text end |
||
|
new text begin
.
new text end |
new text begin
Other assistance based on need new text end |
|
new text begin
You may have assistance based on need from another source that is not on the list. If you
do, check this box, and fill in the source of your money on the line below:
new text end
new text begin
Source:
.
new text end
new text begin
Include copies of any documents you have that show the source of this money.
new text end
|
new text begin
EARNINGS new text end |
||
|
new text begin
ALL or SOME of your earnings (wages) may also be protected. new text end |
||
|
new text begin
.
new text end |
new text begin
All of your earnings (wages) are protected if: new text end |
|
|
new text begin
.
new text end |
new text begin
You get government benefits (see list of government benefits) new text end |
|
|
new text begin
.
new text end |
new text begin
You currently receive other assistance based on need new text end |
|
|
new text begin
.
new text end |
new text begin
You have received government benefits in the last six months new text end |
|
|
new text begin
.
new text end |
new text begin
You were in jail or prison in the last six months new text end |
|
|
new text begin
new text begin If you check one of these lines,new text end your wages are only protected for 60 days after they are deposited in your account so you MUST send the creditor a copy of BANK STATEMENTS that show what was in your account for the 60 days right before the bank froze your money. new text end |
||
|
new text begin
.
new text end |
new text begin
Some of your earnings (wages) are protected. new text end |
|
|
new text begin
If all of your earnings are not exempt, then some of your earnings are still protected for 20 days after they were deposited in your account. The amount protected is the larger amount of: new text end |
||
|
new text begin
75 percent of your wages (after taxes are taken out); or new text end |
||
|
new text begin
(insert the sum of the current federal minimum wage) multiplied by 40. new text end |
||
|
new text begin
OTHER EXEMPT FUNDS new text end |
||
|
new text begin
The money from the following are also completely protected after they are deposited in your account. new text end |
||
|
new text begin
.
new text end |
new text begin
An accident, disability, or retirement pension or annuity new text end |
|
|
new text begin
.
new text end |
new text begin
Payments to you from a life insurance policy new text end |
|
|
new text begin
.
new text end |
new text begin
Earnings of your child who is under 18 years of age new text end |
|
|
new text begin
.
new text end |
new text begin
Child support new text end |
|
|
new text begin
.
new text end |
new text begin
new text begin Money paid to you from a claim for damage or destruction of propertynew text end Property includes household goods, farm tools or machinery, tools for your job, business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes, furniture, or appliances. new text end |
|
|
new text begin
.
new text end |
new text begin
Death benefits paid to you new text end |
|
new text begin
I give permission to any agency that has given me cash benefits to give information
about my benefits to the above-named creditor, or its attorney. The information will ONLY
concern whether I get benefits or not, or whether I have gotten them in the past six months.
new text end
new text begin
If I was an inmate in the last six months, I give my permission to the correctional
institution to tell the above-named creditor that I was an inmate there.
new text end
new text begin
YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
new text end
new text begin
I have mailed or delivered a copy of this form to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
I have also mailed or delivered a copy of this exemption form to my bank at the
address listed in the instructions.
new text end
|
new text begin
DATED:
. new text end |
new text begin
.
new text end |
|
new text begin
DEBTOR new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR ADDRESS new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR TELEPHONE NUMBER new text end |
Subd. 2.
Effect of exemption notice.
Within two business days after receipt of the
execution levy and new text begin the notice, instructions, and two copies of the new text end exemption notices, the
financial institution shall serve upon the judgment debtor new text begin the notice, instructions, and new text end two
copies of the exemption notice. The financial institution shall serve the notice by first
class mail to the last known address of the judgment debtor. If no claim of exemption
is received by the financial institution within 14 days after the exemption notices are
mailed to the judgment debtor, the funds remain subject to the execution levy and shall
be remitted to the judgment creditor's attorney within deleted text begin sevendeleted text end new text begin six businessnew text end days. If the
judgment debtor elects to claim an exemption, the judgment debtor shall complete the
exemption notice, sign it under penalty of perjury, and deliver one copy to the financial
institution and one copy to the attorney for the judgment creditor within 14 days of the
date postmarked on the correspondence mailed to the judgment debtor containing the
exemption notices.new text begin The debtor is also required to include copies of bank statements for
the prior 60 days with the exemption notice. In the event that there is no attorney for the
judgment creditor, the notice must be sent directly to the judgment creditor.new text end Failure of the
judgment debtor to deliver the executed exemption noticenew text begin or copies of the required bank
statements for the prior 60 daysnew text end does not constitute a waiver of any claimed right to an
exemption. Upon timely receipt of a claim of exemption, funds not claimed to be exempt
by the judgment debtor remain subject to the execution levy. All money claimed to be
exempt shall be released to the judgment debtor upon the expiration of deleted text begin sevendeleted text end new text begin six businessnew text end
days after the date postmarked on the envelope containing the executed exemption
notice mailed to the financial institution, or the date of personal delivery of the executed
exemption notice to the financial institution, unless within that time the attorney for the
judgment creditor interposes an objection to the exemption.
Subd. 3.
deleted text begin Objection to exemption claimdeleted text end new text begin Objections and request for hearingnew text end .
new text begin An new text end objection shall be interposednew text begin , within six business days of receipt by the creditor of
an exemption claim from the debtor,new text end by mailing or delivering one copy of the deleted text begin written
objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end to the financial institution and one
copy of the deleted text begin written objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end to the deleted text begin judgmentdeleted text end
debtor deleted text begin along with a copy of the judgment debtor's claimed exemption form. Both copies
of an objection to an exemption claim shall be mailed or delivered on the same datedeleted text end .
The financial institution may rely on the date of mailing or delivery of a notice to it in
computing any time periods in this section. The deleted text begin written objectiondeleted text end new text begin Notice of Objection and
Notice of Hearing formnew text end must be substantially in the form deleted text begin specifieddeleted text end new text begin set outnew text end in subdivision 5.
new text begin
The court administrator may charge a fee of $1 for the filing of a Notice of Objection
and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing,
the court administrator shall schedule the matter for hearing no sooner than five business
days but no later than seven business days from the date of filing. A debtor may request
continuance of the hearing by notifying the creditor and the court. The court shall schedule
the continued hearing within seven days of the original hearing date.
new text end
new text begin
An order stating whether the debtor's funds are exempt shall be issued by the court
within three days of the date of the hearing.
new text end
Subd. 4.
Duties of financial institution if objection is made to exemption claim.
Upon receipt of a deleted text begin written objectiondeleted text end new text begin Notice of Objection and Notice of Hearingnew text end from the
deleted text begin judgmentdeleted text end creditor within the specified deleted text begin seven-daydeleted text end new text begin six-daynew text end period, the financial institution
shall retain the funds claimed to be exempt. deleted text begin Unless the financial institution receives a
request for hearing and notice of hearing from the judgment debtor asserting exemption
rights within ten days after receipt of a written objection to the exemption, the funds
remain subject to the execution levy as if no claim of exemption had been made and shall
be remitted to the judgment creditor's attorney within seven days. If a request for hearing
and notice of hearing to determine the validity of a claim of exemption is received by the
financial institution within the period provided, it shall retain the funds claimed to be
exempt until otherwise ordered by the court.deleted text end new text begin The financial institution shall retain the funds
claimed to be exempt until otherwise ordered by the court, upon mutual agreement of the
parties, or until the garnishment lapses pursuant to subdivision 7.
new text end
Subd. 5.
new text begin Form of new text end Notice of Objectionnew text begin and Notice of Hearingnew text end .
deleted text begin
(a) The written
objection to the judgment debtor's claim of exemption must be in substantially the
following form:
deleted text end
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
||||
|
deleted text begin
County of
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
||||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Creditor) deleted text end |
deleted text begin
OBJECTION TO deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Debtor) deleted text end |
deleted text begin
EXEMPTION CLAIM deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Garnishee) (Third Party) deleted text end |
||||
deleted text begin
The judgment creditor objects to your claim for exemption from garnishment, levy of
execution, order for attachment (strike inapplicable language) for the following reason(s):
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
deleted text begin
Because of this objection, your financial institution will retain the funds you claimed
to be exempt for an additional ten days. If you wish to request a hearing on your exemption
claim, you need to do so within ten days from the date the objection was personally served
on you, or within 13 days from the date the objection was mailed to you. You may request
a hearing by completing the attached form and filing it with the court administrator.
deleted text end
deleted text begin
1. The court administrator's office shall provide clerical assistance to help with the
writing and filing of a Request for Hearing by any person not represented by counsel. The
court administrator may charge a fee of $1 for the filing of a Request for Hearing.
deleted text end
deleted text begin
2. Upon the filing of a Request for Hearing, the court administrator shall schedule
the matter for a hearing no later than five business days from the date of filing. The court
administrator shall forthwith send a completed copy of the request, including the hearing
date, time, and place to the adverse party and to the financial institution by first class mail.
deleted text end
deleted text begin
3. If it is possible that the financial institution might not receive the request mailed
from the court administrator within ten days, then you may want to personally deliver a
copy of the request to the financial institution after you have filed your request with the
court.
deleted text end
deleted text begin
4. An order stating whether your funds are exempt shall be issued by the court
within three days of the date of the hearing.
deleted text end
deleted text begin
If you do not file a Request for Hearing within ten days of the date the objection was
personally served on you, or within 13 days from the date the objection was mailed to you,
your financial institution may turn your funds over to your judgment creditor.
deleted text end
deleted text begin
If you file a Request for Hearing and your financial institution receives it within ten
days of the date it received this objection, your financial institution will retain your funds
claimed to be exempt until otherwise ordered by the court.
deleted text end
|
deleted text begin
.
deleted text end |
|
|
deleted text begin
Attorney for Judgment Creditor deleted text end |
new text begin
(a) The Written Objection and Notice of Hearing must be in substantially the
following form:
new text end
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
|||||
|
new text begin
(Creditor) new text end |
|||||
|
new text begin
CREDITOR'S NOTICE OF OBJECTION AND NOTICE OF HEARING ON EXEMPTION CLAIM new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
(Debtor) new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
(Financial Institution) new text end |
|||||
|
new text begin
(DEBTOR) new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
ADDRESS new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
.
new text end |
|||||
|
new text begin
.
new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
(CREDITOR OR CREDITOR'S ATTORNEY) new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
NOTICE OF HEARING new text end |
|
|
new text begin
The creditor objects to your exemption claim. This hearing is to resolve your exemption claim. new text end |
|
|
new text begin
Hearing Date: new text end |
new text begin
.
new text end |
|
new text begin
Time: new text end |
new text begin
.
new text end |
|
new text begin
Hearing Place: new text end |
new text begin
.
new text end |
new text begin
The creditor objects to your claim of exemption from levy of execution for the
following reason(s):
new text end
|
new text begin
.
new text end |
|
new text begin
.
new text end |
|
new text begin
.
new text end |
new text begin
(Note: Bring with you to the hearing all documents and materials supporting
your exemption claim. Failure to do so could delay the court's decision.)
new text end
new text begin
If the creditor receives all documents and materials supporting your exemption
claim before the hearing date, the creditor may agree with your exemption claim and you
might be able to avoid a hearing.
new text end
new text begin
Because a court hearing will be held on your claim that your funds are protected,
your financial institution will retain the funds until it receives an order from the court or
upon mutual agreement between you and the creditor.
new text end
deleted text begin Subd. 6. deleted text end
deleted text begin Request for hearing and notice for hearing. deleted text end
deleted text begin
The request for hearing
accompanying the objection notice must be in substantially the following form:
deleted text end
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
||||
|
deleted text begin
County of
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
||||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Creditor) deleted text end |
deleted text begin
REQUEST FOR HEARING deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Judgment Debtor) deleted text end |
deleted text begin
AND NOTICE FOR HEARING deleted text end |
|||
|
deleted text begin
.
deleted text end |
deleted text begin
(Garnishee) (Third Party) deleted text end |
||||
deleted text begin
I hereby request a hearing to resolve the exemption claim which has been made
in this case regarding funds in the account of ............. (Judgment Debtor) at the .........
(Financial Institution).
deleted text end
deleted text begin
I believe the property being held is exempt because
deleted text end
deleted text begin
.
deleted text end
deleted text begin
.
deleted text end
|
deleted text begin
Dated:
. deleted text end |
deleted text begin
.
deleted text end |
|
|
deleted text begin
(JUDGMENT DEBTOR) deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
(ADDRESS) deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
HEARING DATE:
. deleted text end |
deleted text begin
TIME:
. deleted text end |
|
|
deleted text begin
HEARING PLACE:
. deleted text end |
||
deleted text begin
(Note to both parties: Bring with you to the hearing all documents and materials
relevant to the exemption claim and objection. Failure to do so could delay the court's
decision.)
deleted text end
Subd. 7.
Release of funds.
At any time during the procedure specified in this
section, the judgment debtor or the attorney for the judgment creditor may, by a writing
dated after the service of the writ of execution, direct the financial institution to release the
funds in question to the other party. Upon receipt of a release, the financial institution
shall release the funds as directed.
Subd. 8.
Subsequent proceedings; bad faith claims.
If in subsequent proceedings
brought by the judgment debtor or the judgment creditor, the claim of exemption is not
upheld, and the court finds that it was asserted in bad faith, the judgment creditor shall be
awarded actual damages, costs, and reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
the court finds that the judgment creditor disregarded the claim of exemption in bad faith,
the judgment debtor shall be awarded costs, reasonable attorney fees, actual damages, and
an amount not to exceed $100. The underlying judgment must be modified to reflect
assessment of damages, costs, and attorney fees. However, if the party in whose favor a
penalty assessment is made is not actually indebted to the party's attorney for fees, the
attorney's fee award shall be made directly to the attorney and if not paid, an appropriate
judgment in favor of the attorney shall be entered. Upon motion of any party in interest,
on notice, the court shall determine the validity of any claim of exemption, and may make
any order necessary to protect the rights of those interested. No financial institution is
liable for damages for complying with this section. Both copies of an exemption claim
or an objection to an exemption claim must be mailed or delivered on the same date.
The financial institution may rely on the date of mailing or delivery of a notice to it in
computing any time periods in this section.
Sec. 4.
Minnesota Statutes 2008, section 571.71, is amended to read:
571.71 GARNISHMENT; WHEN AUTHORIZED.
As an ancillary proceeding to a civil action for the recovery of money, a creditor
may issue a garnishment summons as provided in this chapter against any third party in
the following instances:
(1) at the time the civil action is commenced or at any time after the commencement
of the civil action, but before the entry of a judgment, if the court orders the issuance of
the garnishment summons pursuant to section 571.93;
(2) at any time deleted text begin 40deleted text end new text begin 45new text end days or more after service of the summons and complaint
upon the debtor in the civil action when a judgment by default could have, but has not,
been entered pursuant to rule 55.01(a) of the Minnesota Rules of Civil Procedure for the
District Courts.new text begin Garnishment under this clause is effective only after the Notice of Intent
to Garnish form in section 571.72, subdivision 11, and the Exemption form in section
571.72, subdivision 10, are served on the debtor at any time 20 or more days after the
service of the Summons and Complaint and, in addition, the creditor does not receive an
Answer from the debtor within 25 days after service of the Notice of Intent to Garnish.
The Notice of Intent to Garnish form and the Exemption form must be substantially in the
form set forth in section 571.72, subdivisions 10 and 11. If a creditor sends a Notice of
Intent to Garnish form to a debtor under this clause, the creditor cannot obtain a default
judgment against the debtor under rule 55.01(a) of the Minnesota Rules of Civil Procedure
for the District Court until 25 days after the service of the Notice of Intent to Garnish
form.new text end No filing of a pleading or other documents by the creditor is required to issue
a garnishment summons under this clause; however, the creditor must comply with the
service requirement of section 571.72, subdivision 4; or
(3) at any time after entry of a money judgment in the civil action.
Sec. 5.
Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision
to read:
new text begin Subd. 10. new text end
new text begin
Exemption notice for prejudgment garnishment.
new text end
new text begin
EXEMPTION NOTICE
new text end
new text begin
IMPORTANT NOTICE: A garnishment summons may be served on your
employer, bank, or other third parties without any further court proceeding or notice
to you. See the attached Notice of Intent to Garnish for more information.
new text end
new text begin
The following money and wages may be protected (the legal word is exempt)
from garnishment:
new text end
new text begin
1. Financial institutions/bank
new text end
new text begin
Some of the money in your account may be protected because you receive
government benefits from one or more of the following places:
new text end
new text begin
MFIP - Minnesota family investment program,
new text end
new text begin
MFIP Diversionary Work Program,
new text end
new text begin
Work participation cash benefit,
new text end
new text begin
GA - general assistance,
new text end
new text begin
EA - emergency assistance,
new text end
new text begin
MA - medical assistance,
new text end
new text begin
GAMC - general assistance medical care,
new text end
new text begin
EGA - emergency general assistance or county crisis funds,
new text end
new text begin
MSA - Minnesota supplemental aid,
new text end
new text begin
MSA-EA - MSA emergency assistance,
new text end
new text begin
Food Support,
new text end
new text begin
SSI - Supplemental Security Income,
new text end
new text begin
MinnesotaCare,
new text end
new text begin
Medicare part B premium payments,
new text end
new text begin
Medicare part D extra help,
new text end
new text begin
Energy or fuel assistance,
new text end
new text begin
Social Security benefits,
new text end
new text begin
Unemployment benefits,
new text end
new text begin
Workers' compensation,
new text end
new text begin
Veterans benefits.
new text end
new text begin
Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK
STATEMENTS that show what was in your account for the past 60 days may give
the creditor enough information about your exemption claim to avoid a garnishment.
new text end
new text begin
2. Earnings
new text end
new text begin
All or some of your earnings may be completely protected from garnishment if:
new text end
new text begin
All of your earnings (wages) may be protected if:
new text end
new text begin
You get government benefits (see list of government benefits)
new text end
new text begin
You currently receive other assistance based on need
new text end
new text begin
You have received government benefits in the last six months
new text end
new text begin
You were in jail or prison in the last six months
new text end
new text begin
Your wages are only protected for 60 days after they are deposited in your account
so it would be helpful if you immediately send the undersigned creditor a copy of
BANK STATEMENTS that show what was in your account for the past 60 days.
new text end
new text begin
Some of your earnings (wages) may be protected if:
new text end
new text begin
If all of your earnings are not exempt, some of your earnings may still be protected
for 20 days after they were deposited in your account. The amount protected is the larger
amount of:
new text end
new text begin
75 percent of your wages (after taxes are taken out); or
new text end
new text begin
(insert the sum of the current federal minimum wage) multiplied by 40.
new text end
new text begin
The money from the following are also exempt for 20 days after they are
deposited in your account.
new text end
new text begin
An accident, disability, or retirement pension or annuity
new text end
new text begin
Payments to you from a life insurance policy
new text end
new text begin
Earnings of your child who is under 18 years of age
new text end
new text begin
Child support
new text end
new text begin
Money paid to you from a claim for damage or destruction of property.
Property includes household goods, farm tools or machinery, tools for your job, business
equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes,
furniture, or appliances.
new text end
new text begin
Death benefits paid to you.
new text end
new text begin
YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU
RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage
garnishment. BUT if the creditor garnishes your bank account, you will not get
the notice until AFTER the account has been frozen. IF YOU BELIEVE THE
MONEY IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU
SHOULD IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD
TELL THEM WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT
TO SEE IF YOU CAN AVOID GARNISHMENT.
new text end
|
new text begin
Creditor
. new text end |
|
new text begin
Creditor address
. new text end |
|
new text begin
Creditor telephone number
. new text end |
Sec. 6.
Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Notice of intent to garnish. new text end
new text begin
The notice of intent to garnish must be in
substantially the following form:
new text end
new text begin
IMPORTANT! READ THIS CAREFULLY!
new text end
new text begin
NOTICE OF INTENT TO GARNISH
new text end
|
new text begin
.
new text end |
new text begin
against new text end |
new text begin
.
new text end |
|
new text begin
Plaintiff/Creditor new text end |
new text begin
Defendant/Debtor new text end |
new text begin
Your money, property, or earnings are in danger of being garnished because
you did not send a written "Answer" to the Summons and Complaint served on you
over 20 days ago.
new text end
new text begin
There may not be a case filed in court, BUT because you did not send a written
"Answer" the creditor may serve a garnishment summons on your employer, bank, or
other third parties. This means that your money or wages can be garnished (held or taken).
Under Minnesota law, this can happen any time 20 days after the date you receive this
notice.
new text end
new text begin
There will be NO COURT HEARING or any further notice to you prior to a
garnishment if you do nothing. There may not be a file open at the Clerk of the Court's
office. There are things you can do to avoid a garnishment, but you must act quickly.
new text end
new text begin
Please read these instructions carefully. You have 20 days to do one of the following:
new text end
new text begin
1. Send an Answer. If you do not think you owe the money or if you have a legal
reason that you did not pay, send a written "Answer" to the Summons and Complaint.
Your "Answer" should tell the creditor why you think you do not owe some or all of the
money. Contact a lawyer if you do not know what to do, need help with an answer, or
have any questions about the debt.
new text end
new text begin
2. Claim an Exemption. Even if you do not have a defense to the complaint, some
of your money may be protected (the legal word is exempt) from garnishment. This
means it is protected and cannot be taken. The creditor will send you a form to claim these
exemptions at a later time, but you can possibly avoid the garnishment by contacting
the person below immediately to claim your exemption. Attached to this notice is a list
of exemptions you may be able to claim.
new text end
new text begin
3. If you do not have a defense and your money is not exempt you can call the
person below before the 20 days are up and try to set up a payment plan that works for
both you and your creditor. You can contact the person below at any time to try to work
out a payment plan, but if you wait too long or cannot agree on a payment plan, they may
garnish your wages, bank accounts, or assets.
new text end
new text begin
new text begin If you do not do any of these things, your money can be garnished.new text end The creditor
can garnish your wages, bank accounts, or other assets. They do not have to go to court to
let you know when they start taking your money.
new text end
|
new text begin
LAW FIRM new text end |
||
|
new text begin
Dated:
. new text end |
new text begin
By:
. new text end |
|
|
new text begin
Attorney, # new text end |
||
|
new text begin
Attorneys for Plaintiff new text end |
||
|
new text begin
Address new text end |
||
|
new text begin
Telephone new text end |
Sec. 7.
Minnesota Statutes 2008, section 571.911, is amended to read:
571.911 EXEMPTION NOTICE; DUTY OF FINANCIAL INSTITUTION.
If the garnishment summons is used to garnish funds of a debtor who is a natural
person and if the funds to be garnished are held on deposit at a financial institution, the
creditor shall serve with the garnishee summons new text begin a notice, instructions, and new text end two copies of
an exemption notice. The noticenew text begin , instructions, and exemption noticesnew text end must be substantially
in the deleted text begin formdeleted text end new text begin formsnew text end set forth in section 571.912. Failure of the creditor to send the exemption
notice renders the garnishment void, and the financial institution shall take no action.
Upon receipt of the garnishment summons and exemption notices, the financial institution
shall retain as much of the amount under section 571.73 as the financial institution has on
deposit owing to the debtor, but not more than 110 percent of the creditor's claim.
Sec. 8.
Minnesota Statutes 2008, section 571.912, is amended to read:
571.912 FORM OF new text begin NOTICE, INSTRUCTIONS, AND new text end EXEMPTION NOTICE.
new text begin Subdivision 1. new text end
new text begin Form of notice. new text end
The noticenew text begin , instructions, and exemption noticenew text end
informing a debtor that deleted text begin an order for attachment,deleted text end new text begin a new text end garnishment summonsdeleted text begin , or levy by
executiondeleted text end has been used to attach funds of the debtor to satisfy a claim must be new text begin a separate
notice and must be new text end substantially in the following form:
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
|
|
deleted text begin
COUNTY OF
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
|
|
deleted text begin
.
(Creditor)
deleted text end |
||
|
deleted text begin
.
(Debtor)
deleted text end |
||
|
deleted text begin
TO: Debtor deleted text end |
deleted text begin
EXEMPTION NOTICE deleted text end |
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
IMPORTANT NOTICE
new text end
new text begin
YOUR FUNDS HAVE BEEN GARNISHED
new text end
new text begin
The Creditor has frozen money in your account at your financial institution.
new text end
new text begin
Your account balance is $.......
new text end
new text begin
The amount being held is $.......
new text end
new text begin
The amount being held will be frozen for 14 days from the date of this notice.
new text end
new text begin
Some of your money in your account may be protected (the legal word is
exempt). You may be able to get it sooner than 14 days if you act quickly and follow
the instructions on the next page.
new text end
new text begin
The attached exemption form lists some different sources of money in your account
that may be protected. If your money is from one or more of these sources, place a
check on the line on the form next to the sources of your money. If it is from one of
these sources, the Creditor cannot take it.
new text end
new text begin
BUT, you must follow the instructions and return the exemption form and
copies of your bank statements from the last 60 days to have the bank unfreeze your
money. If you do not follow the instructions or your Creditor gets an order from the court
or writ of execution, your financial institution will give the money to your Creditor. If that
happens and it is protected, you can still get it back from the Creditor later, but that is not
as easy to do as filling in the form now.
new text end
new text begin
See next pages for instructions and the exemption form.
new text end
new text begin Subd. 2. new text end
new text begin Form of instructions. new text end
new text begin
The instructions required must be in a separate form
and must be substantially in the following form:
new text end
new text begin
INSTRUCTIONS
new text end
new text begin
Note: The creditor is who you owe the money to. You are the debtor.
new text end
new text begin
1. Fill out both of the attached exemption forms in this packet.
new text end
new text begin
If you check one of the lines, you should also give proof that shows that some
or all of the money in your account is from one or more of the protected sources.
Creditors may ask for a hearing if they question your exemptions.
new text end
new text begin
To avoid a hearing:
new text end
new text begin
Case numbers should be added to the form.
new text end
new text begin
Copies of documents should be sent with the form.
new text end
new text begin
NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
FOR THE PAST 60 DAYS BEFORE THE GARNISHMENT. Keep a copy of your
bank statements in case there are questions about your claim. If you do not send to
the creditor's attorney (or to the creditor, if no attorney) bank statements with your
exemption claim, the financial institution may release your money to the creditor
once the creditor gives the financial institution a court order directing it to turn
over the funds.
new text end
new text begin
2. Sign the exemption forms. Make one copy to keep for yourself.
new text end
new text begin
3. Mail or deliver the other copies of the form by (insert date).
new text end
new text begin
BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
new text end
new text begin
One copy of the form and the copies of your bank statements go to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
One copy goes to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of bank) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of bank) new text end |
new text begin
HOW THE PROCESS WORKS
new text end
new text begin
If You Do Not Send in the Exemption Form and Bank Statements:
new text end
new text begin
14 days after the date of this letter some or all of your money may be turned over to
the creditor once they get an order from the court telling the financial institution to do this.
new text end
new text begin
If You Send in the Exemption Form and Bank Statements:
new text end
new text begin
Any money that is NOT protected can be turned over to the creditor once they get
an order from the court.
new text end
new text begin
If the Creditor Does Not Object:
new text end
new text begin
The financial institution will unfreeze your money six business days after the
institution gets your completed form.
new text end
new text begin
If the Creditor Objects:
new text end
new text begin
The money you have said is protected on the form will be held by the bank. The
creditor has six business days to object (disagree) and ask the court to hold a hearing. You
will receive a Notice of Objection and a Notice of Hearing.
new text end
new text begin
The financial institution will hold the money until a court decides whether your
money is protected or not. Some reasons a creditor may object are because you did not
send copies of your bank statements or other proof of the benefits you received. Be sure to
include these when you send your exemption form.
new text end
new text begin
You may want to talk to a lawyer for advice about this process. If you are low
income you can call Legal Aid.
new text end
new text begin
PENALTIES:
new text end
new text begin
If you claim that your money is protected and a court decides you made that claim
in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
additional amount of up to $100. For example, it may be bad faith if you claim you receive
government benefits that you do not receive.
new text end
new text begin
If the creditor made a bad faith objection to your claim that your money is protected,
the court can order them to pay costs, actual damages, attorney fees, and an additional
amount of up to $100.
new text end
new text begin Subd. 3. new text end
new text begin Exemption notice. new text end
new text begin
The exemption notice must be a separate form and
must be in substantially the following form:
new text end
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
||||
new text begin
EXEMPTION FORM
new text end
|
new text begin
A. new text end |
new text begin
HOW MUCH MONEY IS PROTECTED new text end |
|
|
new text begin
.
new text end |
new text begin
I claim ALL of the money being frozen by the bank is protected. new text end |
|
|
new text begin
.
new text end |
new text begin
I claim SOME of the money is protected. The amount I claim is protected is $....... new text end |
|
|
new text begin
B. new text end |
new text begin
WHY THE MONEY IS PROTECTED new text end |
|
|
new text begin
My money is protected because I get it from one or more of the following places: (Check all that apply) new text end |
||
|
new text begin
.
new text end |
new text begin
Government benefits new text end |
|
|
new text begin
Government benefits include, but are not limited to, the following: new text end |
||
|
new text begin
new text begin MFIPnew text end - Minnesota family investment program, new text end |
||
|
new text begin
MFIP Diversionary Work Program, new text end |
||
|
new text begin
new text begin Work participation cash benefit,new text end new text end |
||
|
new text begin
new text begin GAnew text end - general assistance, new text end |
||
|
new text begin
new text begin EAnew text end - emergency assistance, new text end |
||
|
new text begin
new text begin MAnew text end - medical assistance, new text end |
||
|
new text begin
new text begin GAMCnew text end - general assistance medical care, new text end |
||
|
new text begin
new text begin EGAnew text end - emergency general assistance, new text end |
||
|
new text begin
new text begin MSAnew text end - Minnesota supplemental aid, new text end |
||
|
new text begin
new text begin MSA-EAnew text end - MSA emergency assistance, new text end |
||
|
new text begin
Food Support, new text end |
||
|
new text begin
SSI - Supplemental Security Income, new text end |
||
|
new text begin
MinnesotaCare, new text end |
||
|
new text begin
Medicare part B premium payments, new text end |
||
|
new text begin
Medicare part D extra help, new text end |
||
|
new text begin
Energy or fuel assistance. new text end |
||
|
new text begin
LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end |
||
|
new text begin
.
new text end |
||
|
new text begin
LIST THE CASE NUMBER AND COUNTY new text end |
||
|
new text begin
Case Number:
. new text end |
||
|
new text begin
County:
. new text end |
||
|
new text begin
Government benefits also include: new text end |
||
|
new text begin
.
new text end |
new text begin
Social Security benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Unemployment benefits new text end |
|
|
new text begin
.
new text end |
new text begin
Workers' compensation new text end |
|
|
new text begin
.
new text end |
new text begin
Veterans benefits new text end |
|
|
new text begin
If you receive any of these government benefits, include copies of any documents you have that show you receive Social Security, unemployment, workers' compensation, or veterans benefits. new text end |
||
|
new text begin
.
new text end |
new text begin
Other assistance based on need new text end |
|
new text begin
You may have assistance based on need from another source that is not on the list. If you
do, check this box, and fill in the source of your money on the line below:
new text end
new text begin
Source:
.
new text end
new text begin
Include copies of any documents you have that show the source of this money.
new text end
|
new text begin
EARNINGS new text end |
||
|
new text begin
ALL or SOME of your earnings (wages) may also be protected. new text end |
||
|
new text begin
.
new text end |
new text begin
All of your earnings (wages) are protected if: new text end |
|
|
new text begin
.
new text end |
new text begin
You get government benefits (see list of government benefits) new text end |
|
|
new text begin
.
new text end |
new text begin
You currently receive other assistance based on need new text end |
|
|
new text begin
.
new text end |
new text begin
You have received government benefits in the last six months new text end |
|
|
new text begin
.
new text end |
new text begin
You were in jail or prison in the last six months new text end |
|
|
new text begin
new text begin If you check one of these lines,new text end your wages are only protected for 60 days after they are deposited in your account so you MUST send the creditor a copy of BANK STATEMENTS that show what was in your account for the 60 days right before the bank froze your money. new text end |
||
|
new text begin
.
new text end |
new text begin
Some of your earnings (wages) are protected. new text end |
|
|
new text begin
If all of your earnings are not exempt, then some of your earnings are still protected for 20 days after they were deposited in your account. The amount protected is the larger amount of: new text end |
||
|
new text begin
75 percent of your wages (after taxes are taken out); or new text end |
||
|
new text begin
(insert the sum of the current federal minimum wage) multiplied by 40. new text end |
||
|
new text begin
OTHER EXEMPT FUNDS new text end |
||
|
new text begin
The money from the following are also completely protected after they are deposited in your account. new text end |
||
|
new text begin
.
new text end |
new text begin
An accident, disability, or retirement pension or annuity new text end |
|
|
new text begin
.
new text end |
new text begin
Payments to you from a life insurance policy new text end |
|
|
new text begin
.
new text end |
new text begin
Earnings of your child who is under 18 years of age new text end |
|
|
new text begin
.
new text end |
new text begin
Child support new text end |
|
|
new text begin
.
new text end |
new text begin
new text begin Money paid to you from a claim for damage or destruction of propertynew text end Property includes household goods, farm tools or machinery, tools for your job, business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes, furniture, or appliances. new text end |
|
|
new text begin
.
new text end |
new text begin
Death benefits paid to you new text end |
|
new text begin
I give permission to any agency that has given me cash benefits to give information
about my benefits to the above-named creditor, or its attorney. The information will ONLY
concern whether I get benefits or not, or whether I have gotten them in the past six months.
new text end
new text begin
If I was an inmate in the last six months, I give my permission to the correctional
institution to tell the above-named creditor that I was an inmate there.
new text end
new text begin
YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
new text end
new text begin
I have mailed or delivered a copy of this form to:
new text end
|
new text begin
.
new text end |
|
new text begin
(Insert name of creditor or creditor's attorney) new text end |
|
new text begin
.
new text end |
|
new text begin
(Insert address of creditor or creditor's attorney) new text end |
new text begin
I have also mailed or delivered a copy of this exemption form to my bank at the
address listed in the instructions.
new text end
|
new text begin
DATED:
. new text end |
new text begin
.
new text end |
|
new text begin
DEBTOR new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR ADDRESS new text end |
|
|
new text begin
.
new text end |
|
|
new text begin
DEBTOR TELEPHONE NUMBER new text end |
deleted text begin
An order for attachment, garnishment summons, or levy of execution (strike
inapplicable language) has been served on ............ (bank or other financial institution)
............... where you have an account.
deleted text end
deleted text begin
Your account balance is $..................
deleted text end
deleted text begin
The amount being held is $.................
deleted text end
deleted text begin
However, all or a portion of the funds in your account will normally be exempt from
creditors' claims if they are in one of the following categories:
deleted text end
deleted text begin
(1) relief based on need. This includes the Minnesota Family Investment Program
(MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA),
General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance;
deleted text end
deleted text begin
(2) Social Security benefits (Old Age, Survivors, or Disability Insurance);
deleted text end
deleted text begin
(3) unemployment benefits, workers' compensation, or veterans' benefits;
deleted text end
deleted text begin
(4) an accident, disability, or retirement pension or annuity;
deleted text end
deleted text begin
(5) life insurance proceeds;
deleted text end
deleted text begin
(6) the earnings of your minor child and any child support paid to you; or
deleted text end
deleted text begin
(7) money from a claim for damage or destruction of exempt property (such as
household goods, farm tools, business equipment, a mobile home, or a car).
deleted text end
deleted text begin
The following funds are also exempt:
deleted text end
deleted text begin
(8) all earnings of a person in category (1);
deleted text end
deleted text begin
(9) all earnings of a person who has received relief based on need, or who has been
an inmate of a correctional institution, within the last six months;
deleted text end
deleted text begin
(10) 75 percent of every debtor's after tax earnings; and
deleted text end
deleted text begin
(11) all of a debtor's after tax earnings below 40 times the federal minimum wage.
deleted text end
deleted text begin
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
deleted text end
deleted text begin
Categories (10) and (11): 20 days
deleted text end
deleted text begin
Categories (8) and (9): 60 days
deleted text end
deleted text begin
All others: no time limit, as long as funds are traceable to the exempt source. (In
tracing funds, the first-in, first-out method is used. This means money deposited first is
spent first.) The money being sought by the creditor is being held in your account to
give you a chance to claim an exemption.
deleted text end
deleted text begin
TO CLAIM AN EXEMPTION:
deleted text end
deleted text begin
Fill out, sign, and mail or deliver one copy of the attached exemption claim form to
the institution which sent you this notice and mail or deliver one copy to the creditor's
attorney. In the event that there is no attorney for the creditor, then such notice shall be
sent directly to the creditor. The address for the creditor's attorney or the creditor is set
forth below. Both copies must be mailed or delivered on the same day.
deleted text end
deleted text begin
NOTE: You may help resolve your claim faster if you send to the creditor's
attorney written proof or documents that show why your money is exempt. If
you have questions regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written proof and the creditor's
attorney has questions about your exemption claim, the creditor's attorney
may object to your claim which may result in a further delay in releasing your
exempt funds.
deleted text end
deleted text begin
If they do not get the exemption claim back from you within 14 days of the date
they mailed or gave it to you, they will be free to turn the money over to the sheriff or
the creditor. If you are going to claim an exemption, do so as soon as possible, because
your money may be held until it is decided.
deleted text end
deleted text begin
IF YOU CLAIM AN EXEMPTION:
deleted text end
deleted text begin
(1) nonexempt money can be turned over to the creditor or sheriff;
deleted text end
deleted text begin
(2) the financial institution will keep holding the money claimed to be exempt; and
deleted text end
deleted text begin
(3) seven days after receiving your exemption claim, the financial institution will
release the money to you unless before then it receives an objection to your exemption
claim.
deleted text end
deleted text begin
IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
deleted text end
deleted text begin
The institution will hold the money until a court decides if your exemption claim is
valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting
the exemption WITHIN TEN DAYS after the objection is personally served on you, or
within 13 days from the date the objection is mailed to you. You may wish to consult an
attorney at once if the creditor objects to your exemption claim.
deleted text end
deleted text begin
MOTION TO DETERMINE EXEMPTION:
deleted text end
deleted text begin
At any time after your funds have been held, you may ask for a court decision on the
validity of your exemption claim by filing a request for hearing which may be obtained
at the office of the court administrator of the above court.
deleted text end
deleted text begin
PENALTIES:
deleted text end
deleted text begin
If you claim an exemption in bad faith, or if the creditor wrongly objects to an
exemption in bad faith, the court may order the person who acted in bad faith to pay costs,
actual damages, attorney fees, and an additional amount of up to $100.
deleted text end
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
.
deleted text end |
||
|
deleted text begin
Name and address of (Attorney for) Judgment Creditor deleted text end |
deleted text begin
EXEMPTION:
deleted text end
deleted text begin
(If you claim an exemption complete the following):
deleted text end
deleted text begin
(a) Amount of exemption claim.
deleted text end
deleted text begin
/ / I claim ALL the funds being held are exempt.
deleted text end
deleted text begin
/ / I claim SOME of the funds being held are exempt.
deleted text end
|
deleted text begin
The exempt amount is $............ deleted text end |
deleted text begin
(b) Basis for exemption.
deleted text end
deleted text begin
Of the eleven categories listed above, I am in category number ............ (If more
than one category applies, you may fill in as many as apply.) The source of the exempt
funds is the following:
deleted text end
|
deleted text begin
.
deleted text end |
|
deleted text begin
.
deleted text end |
|
deleted text begin
.
deleted text end |
deleted text begin
(If the source is a type of relief based on need, list the case number and county:
deleted text end
deleted text begin
case number: ...............;
deleted text end
deleted text begin
county: ....................)
deleted text end
deleted text begin
I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above named creditor or its attorney
only whether or not I am or have been a recipient of relief based on need or an inmate of a
correctional institute within the last six months.
deleted text end
deleted text begin
I have mailed or delivered a copy of the exemption notice to the creditor's attorney
at the address indicated above.
deleted text end
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deleted text begin
DATED:
. deleted text end |
deleted text begin
.
DEBTOR deleted text end |
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deleted text begin
.
DEBTOR ADDRESS deleted text end |
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deleted text begin
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DEBTOR TELEPHONE NUMBER deleted text end |
Sec. 9.
Minnesota Statutes 2008, section 571.913, is amended to read:
571.913 EFFECT OF EXEMPTION NOTICE.
Within two business days after receipt of the garnishment summons deleted text begin anddeleted text end new text begin , the notice,
instructions, and two copies of the new text end exemption deleted text begin noticesdeleted text end new text begin noticenew text end , the financial institution
shall serve upon the debtor new text begin the notice, instructions, and new text end two copies of the exemption
notice. The financial institution shall serve deleted text begin the noticedeleted text end new text begin these forms new text end by first class mail to the
last known address of the debtor. If no claim of exemption is received by the financial
institution within 14 days after the exemption notices are mailed to the debtor, the funds
remain subject to the garnishment summons. If the debtor elects to claim an exemption,
the debtor shall complete the exemption deleted text begin noticedeleted text end new text begin noticesnew text end , sign deleted text begin itdeleted text end new text begin them new text end under penalty of
perjury, and deliver one copy to the financial institution and one copy to the attorney for
the creditor within 14 days of the date postmarked on the correspondence mailed to the
debtor containing the exemption notices.new text begin The debtor is also required to include copies of
bank statements for the prior 60 days with the exemption notice delivered to the attorney
for the creditor.new text end In the event that there is no attorney for the creditor, then the notice new text begin and
the bank statements new text end must be sent directly to the creditor. Failure of the debtor to deliver
the executed exemption noticenew text begin or copies of the required bank statements for the prior 60
daysnew text end does not constitute a waiver of a claimed right to an exemption. Upon timely receipt
of a claim of exemption, funds not claimed to be exempt by the debtor remain subject
to the garnishment summons. All money claimed to be exempt shall be released to the
debtor upon the expiration of deleted text begin sevendeleted text end new text begin six businessnew text end days after the date postmarked on the
envelope containing the executed exemption notice mailed to the financial institution, or
the date of personal delivery of the executed exemption notice to the financial institution,
unless within that time the creditor interposes an objection to the exemption.
Sec. 10.
Minnesota Statutes 2008, section 571.914, is amended to read:
571.914 OBJECTION TO EXEMPTION CLAIM.
Subdivision 1.
Objectionsnew text begin and request for hearingnew text end .
An objection shall be
interposednew text begin , within six business days of receipt by the creditor of an exemption claim from
the debtor,new text end by mailing or delivering one copy of the deleted text begin written objectiondeleted text end new text begin Notice of Objection
and Notice of Hearing new text end to the financial institution and one copy of the deleted text begin written objectiondeleted text end
new text begin Notice of Objection and Notice of Hearing new text end to the debtor. deleted text begin A Request for Hearing and
Notice of Hearing form must accompany each copy of the written objection.
deleted text end
deleted text begin
Both copies of an objection to an exemption claim must be mailed or delivered on
the same date. The financial institution may rely on the date of mailing or delivery of a
notice to it in computing any time periods in this section.
deleted text end
The deleted text begin written objection, and Request for Hearingdeleted text end new text begin Notice of Objection new text end and Notice of
Hearingdeleted text begin ,deleted text end new text begin form new text end must be substantially in the deleted text begin formsdeleted text end new text begin form new text end set out in deleted text begin subdivisionsdeleted text end new text begin subdivision
new text end 2 deleted text begin and 3deleted text end .
deleted text begin The court shall provide clerical assistance to help with the writing and filing of a
Request for Hearing by any person not represented by counsel.deleted text end The court administrator
may charge a fee of $1 for the filing of a deleted text begin Request fordeleted text end new text begin Notice of Objection and Notice of
new text end Hearing. Upon the filing of a deleted text begin Request fordeleted text end new text begin Notice of Objection and Notice of new text end Hearing, the
court administrator shall schedule the matter for hearing new text begin no sooner than five business days
but new text end no later than deleted text begin fivedeleted text end new text begin seven new text end business days from the date of filing. deleted text begin The court administrator
shall immediately send a completed copy of the request, including the hearing date, time,
and place to the adverse party and to the financial institution by first class mail.deleted text end new text begin A debtor
may request continuance of the hearing by notifying the creditor and the court. The court
shall schedule the continued hearing within seven days of the original hearing date.
new text end
An order stating whether the debtor's funds are exempt shall be issued by the court
within three days of the date of the hearing.
Subd. 2.
new text begin Form of new text end notice of objectionnew text begin and notice of hearingnew text end .
deleted text begin (a)deleted text end The deleted text begin written
objection to the debtordeleted text end new text begin Written Objection and Notice of Hearing new text end must be in substantially
the following form:
| STATE OF MINNESOTA |
DISTRICT COURT |
|
|
COUNTY OF
. |
.
JUDICIAL DISTRICT
|
|
|
.
(Creditor)
|
||
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.
(Debtor)
|
CREDITOR'S new text begin NOTICE OF new text end OBJECTION |
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|
.
(Garnishee)
|
deleted text begin TOdeleted text end new text begin AND NOTICE OF HEARING ON new text end EXEMPTION CLAIM |
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.
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.
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.
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new text begin
(CREDITOR OR CREDITOR'S ATTORNEY) new text end |
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new text begin
.
new text end |
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new text begin
NOTICE OF HEARING new text end |
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|
new text begin
The creditor objects to your exemption claim. This hearing is to resolve your exemption claim. new text end |
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|
new text begin
Hearing Date: new text end |
new text begin
.
new text end |
|
new text begin
Time: new text end |
new text begin
.
new text end |
|
new text begin
Hearing Place: new text end |
new text begin
.
new text end |
The creditor objects to your claim deleted text begin fordeleted text end new text begin of new text end exemption from garnishmentdeleted text begin , levy of
execution, order for attachment (strike inapplicable language)deleted text end for the following reason(s):
|
.
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.
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|
.
|
new text begin
(Note: Bring with you to the hearing all documents and materials supporting
your exemption claim. Failure to do so could delay the court's decision.)
new text end
new text begin
If the creditor receives all documents and materials supporting your exemption
claim before the hearing date, the creditor may agree with your claim and you can avoid
a hearing.
new text end
Because deleted text begin of this objection,deleted text end new text begin a court hearing will be held on your claim that your funds
are protected, new text end your financial institution will retain the funds deleted text begin you claimed to be exempt
for an additional ten days. If you wish to request a hearing on your exemption claim,
you need to do so within ten days from the date the objection was personally served on
you, or within 13 days of the date the objection was mailed to you. You may request a
hearing by completing the attached form and filing it with the court administratordeleted text end new text begin until it
receives an order from the courtnew text end .
deleted text begin
1. The court shall provide clerical assistance to help with the writing and filing of a
Request for Hearing by any person not represented by counsel. The court administrator
may charge a fee of $1 for the filing of a Request for Hearing.
deleted text end
deleted text begin
2. Upon the filing of a Request for Hearing, the clerk shall schedule the matter for a
hearing no later than five business days from the date of filing. The court administrator
shall forthwith send a completed copy of the request, including the hearing date, time, and
place to the adverse party and to the financial institution by first class mail.
deleted text end
deleted text begin
3. If it is possible that the financial institution might not receive the request mailed
from the court administrator within ten days, then you may want to personally deliver a
copy of the request to the financial institution after you have filed your request with the
court.
deleted text end
deleted text begin
4. An order stating whether your funds are exempt shall be issued by the court
within three days of the date of the hearing.
deleted text end
deleted text begin
If you do not file a Request for Hearing within ten days of the date the objection was
personally served on you, or within 13 days from the date the objection was mailed to you,
your financial institution may turn your funds over to your creditor.
deleted text end
deleted text begin
If you file a Request for Hearing and your financial institution receives it within ten
days of the date it received this objection, your financial institution will retain your funds
claimed to be exempt until otherwise ordered by the court, or until the garnishment lapses
pursuant to Minnesota Statutes, section 571.79.
deleted text end
|
deleted text begin
.
deleted text end |
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|
deleted text begin
(CREDITOR OR CREDITOR'S ATTORNEY.) deleted text end |
deleted text begin Subd. 3. deleted text end
deleted text begin Request for hearing and notice for hearing. deleted text end
deleted text begin
The request for hearing
accompanying the objection notice must be in substantially the following form:
deleted text end
|
deleted text begin
STATE OF MINNESOTA deleted text end |
deleted text begin
DISTRICT COURT deleted text end |
|
|
deleted text begin
COUNTY OF
. deleted text end |
deleted text begin
.
JUDICIAL DISTRICT
deleted text end |
|
|
deleted text begin
.
(Creditor)
deleted text end |
||
|
deleted text begin
.
(Debtor)
deleted text end |
deleted text begin
REQUEST FOR HEARING AND NOTICE FOR HEARING deleted text end |
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|
deleted text begin
.
(Garnishee)
deleted text end |
deleted text begin
I hereby request a hearing to resolve the exemption claim which has been made in
this case regarding funds in the account of ............. (Debtor) at the ......... (Financial
Institution).
deleted text end
deleted text begin
I believe the property being held is exempt because
deleted text end
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deleted text begin
.
deleted text end |
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deleted text begin
.
deleted text end |
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deleted text begin
Dated:
. deleted text end |
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deleted text begin
(DEBTOR)
deleted text end deleted text begin . deleted text end |
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deleted text begin
(ADDRESS)
deleted text end deleted text begin . deleted text end |
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deleted text begin
HEARING DATE:
. deleted text end |
deleted text begin
TIME:
. deleted text end |
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deleted text begin
HEARING PLACE:
. deleted text end |
deleted text begin
(Note to both parties: Bring with you to the hearing all documents and materials
relevant to the exemption claim. Failure to do so could delay the court's decision.)
deleted text end
Subd. 4.
Duties of financial institution if objection is made to exemption claim.
Upon receipt of a deleted text begin written objectiondeleted text end new text begin Notice of Objection and Notice of Hearing new text end from the
creditor within the specified seven-day period, the financial institution shall retain the
funds claimed to be exempt. deleted text begin Unless the financial institution receives a request for hearing
from the debtor asserting exemption rights within ten days after receipt of the written
objection to the exemption, the funds remain subject to the garnishment summons as if
no claim of exemption had been made. If a notice of motion and motion to determine
the validity of a claim of exemption is received by the financial institution within the
period provided,deleted text end The financial institution shall retain the funds claimed to be exempt
until otherwise ordered by the court, new text begin upon mutual agreement of the parties, new text end or until the
garnishment lapses pursuant to section 571.79.
Sec. 11.
Minnesota Statutes 2008, section 571.925, is amended to read:
571.925 FORM OF NOTICE.
The ten-day notice informing a debtor that a garnishment summons may be used to
garnish the earnings of an individual must be substantially in the following form:
| STATE OF MINNESOTA |
DISTRICT COURT |
|
|
COUNTY OF
. |
.
JUDICIAL DISTRICT
|
|
|
.
(Creditor)
against |
||
| GARNISHMENT EXEMPTION |
||
|
.
(Debtor)
|
NOTICE AND NOTICE OF |
|
| and |
INTENT TO GARNISH EARNINGS |
|
|
.
(Garnishee)
|
PLEASE TAKE NOTICE that a garnishment summons or levy may be served upon
your employer or other third parties, without any further court proceedings or notice to
you, ten days or more from the date hereof. Some or all of your earnings are exempt
from garnishment. If your earnings are garnished, your employer must show you how
the amount that is garnished from your earnings was calculated. You have the right to
request a hearing if you claim the garnishment is incorrect.
Your earnings are completely exempt from garnishment if you are now a recipient of
deleted text begin reliefdeleted text end new text begin assistancenew text end based on need, if you have been a recipient of deleted text begin reliefdeleted text end new text begin assistance based on
need new text end within the last six months, or if you have been an inmate of a correctional institution
in the last six months.
deleted text begin
Relief based on need includes the Minnesota Family Investment Program (MFIP),
Emergency Assistance (EA), Work First Program, Medical Assistance (MA), General
Assistance (GA), General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance.
deleted text end
new text begin
Assistance based on need includes, but is not limited to:
new text end
|
new text begin
MFIP - Minnesota family investment program, new text end |
|
|
new text begin
MFIP Diversionary Work Program, new text end |
|
|
new text begin
Work participation cash benefit, new text end |
|
|
new text begin
GA - general assistance, new text end |
|
|
new text begin
EA - emergency assistance, new text end |
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|
new text begin
MA - medical assistance, new text end |
|
|
new text begin
GAMC - general assistance medical care, new text end |
|
|
new text begin
EGA - emergency general assistance, new text end |
|
|
new text begin
MSA - Minnesota supplemental aid, new text end |
|
|
new text begin
MSA-EA - MSA emergency assistance, new text end |
|
|
new text begin
Food Support, new text end |
|
|
new text begin
SSI - Supplemental Security Income, new text end |
|
|
new text begin
MinnesotaCare, new text end |
|
|
new text begin
Medicare part B premium payments, new text end |
|
|
new text begin
Medicare part D extra help, new text end |
|
|
new text begin
Energy or fuel assistance. new text end |
If you wish to claim an exemption, you should fill out the appropriate form below,
sign it, and send it to the creditor's attorney and the garnishee.
You may wish to contact the attorney for the creditor in order to arrange for a
settlement of the debt or contact an attorney to advise you about exemptions or other rights.
PENALTIES
(1) Be advised that even if you claim an exemption, a garnishment summons may
still be served on your employer. If your earnings are garnished after you claim an
exemption, you may petition the court for a determination of your exemption. If the
court finds that the creditor disregarded your claim of exemption in bad faith, you
will be entitled to costs, reasonable attorney fees, actual damages, and an amount
not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the creditor can also
petition the court for a determination of your exemption, and if the court finds that
you claimed an exemption in bad faith, you will be assessed costs and reasonable
attorney's fees plus an amount not to exceed $100.
(3) If after receipt of this notice, you in bad faith take action to frustrate the
garnishment, thus requiring the creditor to petition the court to resolve the problem,
you will be liable to the creditor for costs and reasonable attorney's fees plus an
amount not to exceed $100.
|
Dated:
. |
.
(Attorney for) Creditor |
|
|
.
Address |
||
|
.
Telephone |
DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from garnishment because:
(1) I am presently a recipient of relief based on need. (Specify the program, case
number, and the county from which relief is being received.)
|
.
Program |
.
Case Number (if known) |
.
County |
(2) I am not now receiving relief based on need, but I have received relief based on
need within the last six months. (Specify the program, case number, and the county
from which relief has been received.)
|
.
Program |
.
Case Number (if known) |
.
County |
(3) I have been an inmate of a correctional institution within the last six months.
(Specify the correctional institution and location.)
|
.
Correctional Institution |
.
Location |
I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above-named creditor or the
creditor's attorney only whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institution within the last six months. I have mailed or
delivered a copy of this form to the creditor or creditor's attorney.
|
.
Date |
.
Debtor |
|
|
.
Address |
||
|
.
Debtor Telephone Number |
|
new text begin
STATE OF MINNESOTA new text end |
new text begin
DISTRICT COURT new text end |
||||
|
new text begin
COUNTY OF
. new text end |
new text begin
.
JUDICIAL DISTRICT
new text end |
||||
|
new text begin
.
new text end |
new text begin
(Creditor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Debtor) new text end |
||||
|
new text begin
.
new text end |
new text begin
(Financial institution) new text end |
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