HF 1578

as introduced - 87th Legislature (2011 - 2012) Posted on 04/26/2011 09:58am

A bill for an act
relating to judiciary; providing a limitation period to bring an action arising out
of consumer debt; providing requirements for applications for default judgments
in actions upon obligations of consumer debt; setting the bail amount in cases
of consumer debt; amending Minnesota Statutes 2010, sections 491A.02,
subdivision 9; 550.011; 588.04; proposing coding for new law in Minnesota
Statutes, chapters 541; 548.

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

Section 1.

Minnesota Statutes 2010, section 491A.02, subdivision 9, is amended to
read:

Subd. 9.

Judgment debtor disclosure.

Notwithstanding any contrary provision in
rule 518 of the Conciliation Court Rules, unless the parties have otherwise agreed, if a
conciliation court judgment or a judgment of district court on removal from conciliation
court has been docketed in district court, the judgment creditor's attorney as an officer of
the court may or the district court in the county in which the judgment originated shall,
upon request of the judgment creditor, order the judgment debtor to mail to the judgment
creditor information as to the nature, amount, identity, and locations of all the debtor's
assets, liabilities, and personal earning. The information must be provided on a form
prescribed by the Supreme Court, and the information shall be sufficiently detailed to
enable the judgment creditor to obtain satisfaction of the judgment by way of execution
on nonexempt assets and earnings of the judgment debtor. The order must contain a
notice that failure to complete the form and mail it to the judgment creditor within ten
days after service of the order may result in a citation for civil contempt of court. Cash
bail posted as a result of being cited for civil contempt of court order under this section
may be ordered payable to the creditor to satisfy the judgment, either partially or fully new text begin ,
subject to section 588.04, paragraph (b) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 2.

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

new text begin Notwithstanding section 541.05, subdivision 1, clause (1), actions upon an obligation
arising out of a consumer debt primarily for personal, family, or household purposes
shall be commenced within six years. A payment made on the consumer debt after the
expiration of the limitation period does not restart the limitation period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 3.

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

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

new text begin (1) evidence of the amount of the assigned debt;
new text end

new text begin (2) the bill of sale or other evidence of the proof of ownership of the assigned
account; and
new text end

new text begin (3) the judgment debtor's redacted Social Security number, if known.
new text end

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

new text begin (1) evidence of the assigned debt which may be a monthly or periodic statement for
the debt;
new text end

new text begin (2) the bill of sale or other evidence of the proof of ownership of the assigned
account; and
new text end

new text begin (3) the judgment debtor's redacted Social Security number, if known.
new text end

new text begin (c) Nothing in this section amends the rules of evidence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011, and applies to claims
arising from debts created on or after August 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 550.011, is amended to read:

550.011 JUDGMENT DEBTOR DISCLOSURE.

Unless the parties have otherwise agreed, if a judgment has been docketed in district
court for at least 30 days, and the judgment is not satisfied, the judgment creditor's attorney
as an officer of the court may or the district court in the county in which the judgment
originated shall, upon request of the judgment creditor, order the judgment debtor to mail
by certified mail to the judgment creditor information as to the nature, amount, identity,
and locations of all the debtor's assets, liabilities, and personal earnings. The information
must be provided on a form prescribed by the Supreme Court, and the information shall be
sufficiently detailed to enable the judgment creditor to obtain satisfaction of the judgment
by way of execution on nonexempt assets and earnings of the judgment debtor. The order
must contain a notice that failure to complete the form and mail it to the judgment creditor
within ten days after service of the order may result in a citation for civil contempt of
court. Cash bail posted as a result of being cited for civil contempt of court order under
this section may be ordered payable to the creditor to satisfy the judgment, either partially
or fully new text begin , subject to section 588.04, paragraph (b) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end

Sec. 5.

Minnesota Statutes 2010, section 588.04, is amended to read:

588.04 ARREST; ORDER TO SHOW CAUSE.

new text begin (a) new text end In cases of constructive contempt, an affidavit of the facts constituting the
contempt shall be presented to the court or officer, who may either issue a warrant of arrest
to bring the person charged to answer or, without a previous arrest, upon notice, or upon
an order to show cause, which may be served by a sheriff or other officer in the same
manner as a summons in an action, may commit the person to jail, impose a fine, or both,
and make such order thereupon as the case may require.

new text begin (b) When the underlying case is about an obligation arising out of a consumer debt
primarily for personal, family, or household purposes, and results in a judgment of not
more than $15,000, the bail shall be set at ten percent of the judgment balance but not
less than $300. Otherwise the bail shall be an amount set by the court after considering
aggravating and mitigating factors. Bail posted under this section shall be returned to the
judgment debtor unless the court in its discretion orders the bail applied to the remaining
judgment balance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
new text end