Minnesota Legislature
HF 3577
as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to creditors' remedies; regulating 1.3 garnishments, executions, and levies; revising forms; 1.4 regulating service; defining terms; providing 1.5 notification; increasing the dollar amount of 1.6 attorneys' execution levies; making various 1.7 housekeeping and technical changes; amending Minnesota 1.8 Statutes 1998, sections 550.051, subdivision 1; 1.9 550.136, subdivision 6; 550.143, subdivisions 3, 7, 1.10 and 8; 551.01; 551.04, subdivisions 4, 6, and 9; 1.11 551.05, subdivisions 1a and 5; 551.06, subdivisions 9 1.12 and 10; 571.72, subdivision 2; 571.74; 571.75, 1.13 subdivision 2; 571.82, subdivision 1; 571.912; 1.14 571.914, subdivision 2; 571.921; and 571.925; 1.15 proposing coding for new law in Minnesota Statutes, 1.16 chapter 551. 1.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.18 Section 1. Minnesota Statutes 1998, section 550.051, 1.19 subdivision 1, is amended to read: 1.20 Subdivision 1. [TIME PERIODS.] The writ of execution 1.21 expires 180 days after its issuance by the court administrator. 1.22 A levy that is served with a writ of execution that has expired 1.23 is void. If the officer or creditor's attorney having the writ 1.24 levies upon property or earnings before the expiration of 180 1.25 days, the officer or creditor's attorney may retain the writ 1.26 until the officer sells the property or completes the levy upon 1.27 earnings in the manner prescribed by law. Any levy properly 1.28 served in accordance with this chapter or chapter 551 prior to 1.29 the expiration of the writ shall be processed in accordance with 1.30 the appropriate statutory section until completion, without 1.31 regard for the date of expiration of the writ. Upon a demand of 2.1 the judgment creditor or the creditor's attorney within 180 2.2 days, the officer shall pay to the judgment creditor or the 2.3 judgment creditor's attorney all money collected upon execution 2.4 after deducting the officer's fees. Upon expiration of the writ 2.5 or full satisfaction of the judgment, if earlier, the officer 2.6 shall make a full inventory of the property levied on and return 2.7 it with the execution. 2.8 Sec. 2. Minnesota Statutes 1998, section 550.136, 2.9 subdivision 6, is amended to read: 2.10 Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first 2.11 levy on earnings under this chapter, the judgment creditor shall 2.12 serve upon the judgment debtor no less than ten days before the 2.13 service of the writ of execution, a notice that the writ of 2.14 execution may be served on the judgment debtor's employer. The 2.15 notice must: (1) be substantially in the form set forth below; 2.16 (2) be served personally, in the manner of a summons and 2.17 complaint, or by first class mail to the last known address of 2.18 the judgment debtor; (3) inform the judgment debtor that an 2.19 execution levy may be served on the judgment debtor's employer 2.20 in ten days, and that the judgment debtor may, within that time, 2.21 cause to be served on the judgment creditor a signed statement 2.22 under penalties of perjury asserting an entitlement to an 2.23 exemption from execution; (4) inform the judgment debtor of the 2.24 earnings exemptions contained in section 550.37, subdivision 14; 2.25 and (5) advise the judgment debtor of the relief set forth in 2.26 this chapter to which the debtor may be entitled if a judgment 2.27 creditor in bad faith disregards a valid claim and the fee, 2.28 costs, and penalty that may be assessed against a judgment 2.29 debtor who in bad faith falsely claims an exemption or in bad 2.30 faith takes action to frustrate the execution process. The 2.31 notice requirement of this subdivision does not apply to a levy 2.32 on earnings being retained by an employer pursuant to a 2.33 garnishment previously served in compliance with chapter 571. 2.34 The ten-day notice informing a judgment debtor that a writ 2.35 of execution may be used to levy the earnings of an individual 2.36 must be substantially in the following form: 3.1 STATE OF MINNESOTA DISTRICT COURT 3.2 COUNTY OF ............. ........... JUDICIAL DISTRICT 3.3 .............(Judgment Creditor) 3.4 against 3.5 EXECUTION EXEMPTION 3.6 .............(Judgment Debtor) NOTICE AND NOTICE OF 3.7 and INTENT TO LEVY ON EARNINGS 3.8 WITHIN TEN DAYS 3.9 .............(Third Party) 3.10 PLEASE TAKE NOTICE that a levy may be served upon your 3.11 employer or other third parties, without any further court 3.12 proceedings or notice to you, ten days or more from the date 3.13 hereof. Your earnings are completely exempt from execution levy 3.14 if you are now a recipient of relief based on need, if you have 3.15 been a recipient of relief within the last six months, or if you 3.16 have been an inmate of a correctional institution in the last 3.17 six months. 3.18 Relief based on need includes Aid to Families with 3.19 Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA), 3.20 Medical Assistance (MA), General Assistance (GA), General 3.21 Assistance Medical Care (GAMC), Emergency General Assistance 3.22 (EGA), Work Readiness, Minnesota Supplemental Aid (MSA), MSA 3.23 Emergency Assistance (MSA-EA), Supplemental Security Income 3.24 (SSI), and Energy Assistance. 3.25 If you wish to claim an exemption, you should fill out the 3.26 appropriate form below, sign it, and send it to the judgment 3.27 creditor's attorney. 3.28 You may wish to contact the attorney for the judgment 3.29 creditor in order to arrange for a settlement of the debt or 3.30 contact an attorney to advise you about exemptions or other 3.31 rights. 3.32 PENALTIES 3.33 (1) Be advised that even if you claim an exemption, an 3.34 execution levy may still be served on your employer. If 3.35 your earnings are levied on after you claim an exemption, 3.36 you may petition the court for a determination of your 4.1 exemption. If the court finds that the judgment creditor 4.2 disregarded your claim of exemption in bad faith, you will 4.3 be entitled to costs, reasonable attorney fees, actual 4.4 damages, and an amount not to exceed $100. 4.5 (2) HOWEVER, BE WARNED if you claim an exemption, the 4.6 judgment creditor can also petition the court for a 4.7 determination of your exemption, and if the court finds 4.8 that you claimed an exemption in bad faith, you will be 4.9 assessed costs and reasonable attorney's fees plus an 4.10 amount not to exceed $100. 4.11 (3) If after receipt of this notice, you in bad faith take 4.12 action to frustrate the execution levy, thus requiring the 4.13 judgment creditor to petition the court to resolve the 4.14 problem, you will be liable to the judgment creditor for 4.15 costs and reasonable attorney's fees plus an amount not to 4.16 exceed $100. 4.17 DATED: ............ ........................ 4.18 (Attorney for Judgment Creditor) 4.19 ........................ 4.20 Address 4.21 ........................ 4.22 Telephone 4.23 JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE 4.24 I hereby claim that my earnings are exempt from execution 4.25 because: 4.26 (1) I am presently a recipient of relief based on need. 4.27 (Specify the program, case number, and the county from 4.28 which relief is being received.) 4.29 ................ ...................... ............... 4.30 Program Case Number (if known) County 4.31 (2) I am not now receiving relief based on need, but I have 4.32 received relief based on need within the last six months. 4.33 (Specify the program, case number, and the county from 4.34 which relief has been received.) 4.35 ................ ...................... ............... 4.36 Program Case Number (if known) County 5.1 (3) I have been an inmate of a correctional institution 5.2 within the last six months. (Specify the correctional 5.3 institution and location.) 5.4 ........................... .......................... 5.5 Correctional Institution Location 5.6 I hereby authorize any agency that has distributed relief 5.7 to me or any correctional institution in which I was an inmate 5.8 to disclose to the above-named judgment creditor or the judgment 5.9 creditor's attorney only whether or not I am or have been a 5.10 recipient of relief based on need or an inmate of a correctional 5.11 institution within the last six months. I have mailed or 5.12 delivered a copy of this form to the judgment creditor or 5.13 judgment creditor's attorney. 5.14 ........................... ......................... 5.15 Debtor 5.16 ......................... 5.17 Address 5.18 ......................... 5.19 Debtor Phone Number 5.20 Sec. 3. Minnesota Statutes 1998, section 550.143, 5.21 subdivision 3, is amended to read: 5.22 Subd. 3. [EXEMPTION NOTICE.] If the levy is on funds of a 5.23 judgment debtor who is a natural person and if the funds to be 5.24 levied are held on deposit at any financial institution, the 5.25 judgment creditor or its attorney shall provide the sheriff with 5.26 two copies of an exemption notice, which must be substantially 5.27 in the form set forth below. The sheriff shall serve both 5.28 copies of the exemption notice on the financial institution, 5.29 along with the writ of execution. Failure of the sheriff to 5.30 serve the exemption notices renders the levy void, and the 5.31 financial institution shall take no action. However, if this 5.32 subdivision is being used to execute on funds that have 5.33 previously been garnished in compliance with section 571.71, the 5.34 judgment creditor is not required to serve additional exemption 5.35 notices. In that event, the execution levy shall only be 5.36 effective as to the funds that were subject to the prior 6.1 garnishment. Upon receipt of the writ of execution and 6.2 exemption notices, the financial institution shall retain as 6.3 much of the amount due under section 550.04 as the financial 6.4 institution has on deposit owing to the judgment debtor, but not 6.5 more than 110 percent of the amount remaining due on the 6.6 judgment. 6.7 STATE OF MINNESOTA DISTRICT COURT 6.8 COUNTY OF ................ .......... JUDICIAL DISTRICT 6.9 .............(Judgment Creditor) 6.10 .............(Judgment Debtor) 6.11 TO: Debtor EXEMPTION NOTICE 6.12 An order for attachment, garnishment summons, or levy of 6.13 execution (strike inapplicable language) has been served on 6.14 ............. (Bank or other financial institution where you 6.15 have an account.) 6.16 Your account balance is $........ 6.17 The amount being held is $........ 6.18 However, all or a portion of the funds in your account will 6.19 normally be exempt from creditors' claims if they are in one of 6.20 the following categories: 6.21 (1) relief based on need. This includes: Aid to Families 6.22 with Dependent Children (AFDC), AFDC-Emergency Assistance 6.23 (AFDC-EA), Medical Assistance (MA), General Assistance (GA), 6.24 General Assistance Medical Care (GAMC), Emergency General 6.25 Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 6.26 (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 6.27 Income (SSI), and Energy Assistance; 6.28 (2) Social Security benefits (Old Age, Survivors, or 6.29 Disability Insurance); 6.30 (3) reemployment insurance, workers' compensation, or 6.31 veterans' benefits; 6.32 (4) an accident, disability, or retirement pension or 6.33 annuity; 6.34 (5) life insurance proceeds; 6.35 (6) the earnings of your minor child and any child support 6.36 paid to you; or 7.1 (7) money from a claim for damage or destruction of exempt 7.2 property (such as household goods, farm tools, business 7.3 equipment, a mobile home, or a car). 7.4 The following funds are also exempt: 7.5 (8) all earnings of a person in category (1); 7.6 (9) all earnings of a person who has received relief based 7.7 on need, or who has been an inmate of a correctional 7.8 institution, within the last six months; 7.9 (10) 75 percent of every debtor's after tax earnings; and 7.10 (11) all of a judgment debtor's after tax earnings below 40 7.11 times the federal minimum wage. 7.12 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 7.13 Categories (10) and (11): 20 days 7.14 Categories (8) and (9): 60 days 7.15 All others: no time limit, as long as funds are traceable 7.16 to the exempt source. (In tracing funds, the first-in, 7.17 first-out method is used. This means money deposited first is 7.18 spent first.) The money being sought by the judgment creditor 7.19 is being held in your account to give you a chance to claim an 7.20 exemption. 7.21 TO CLAIM AN EXEMPTION: 7.22 Fill out, sign, and mail or deliver one copy of the 7.23 attached exemption claim form to the institution which sent you 7.24 this notice and mail or deliver one copy to the judgment 7.25 creditor's attorney. In the event that there is no attorney for 7.26 the judgment creditor, then the notice shall be sent directly to 7.27 the judgment creditor. The address for the judgment creditor's 7.28 attorney or the judgment creditor is set forth below. Both 7.29 copies must be mailed or delivered on the same day. 7.30 NOTE: You may help resolve your claim faster if you send 7.31 to the creditor's attorney written proof or documents that 7.32 show why your money is exempt. If you have questions 7.33 regarding the documents to send as proof of an exemption, 7.34 call the creditor's attorney. If you do not send written 7.35 proof and the creditor's attorney has questions about your 7.36 exemption claim, the creditor's attorney may object to your 8.1 claim which may result in a further delay in releasing your 8.2 exempt funds. 8.3 If the financial institution does not get the exemption 8.4 claim back from you within 14 days of the date they mailed or 8.5 gave it to you, they will be free to turn the money over to the 8.6 sheriff or the judgment creditor. If you are going to claim an 8.7 exemption, do so as soon as possible, because your money may be 8.8 held until it is decided. 8.9 IF YOU CLAIM AN EXEMPTION: 8.10 (1) nonexempt money can be turned over to the judgment 8.11 creditor or sheriff; 8.12 (2) the financial institution will keep holding the money 8.13 claimed to be exempt; and 8.14 (3) seven days after receiving your exemption claim, the 8.15 financial institution will release the money to you unless 8.16 before then it receives an objection to your exemption claim. 8.17 IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 8.18 the institution will hold the money until a court decides 8.19 if your exemption claim is valid, BUT ONLY IF the institution 8.20 gets a copy of your court motion papers asserting the exemption 8.21 WITHIN TEN DAYS after the objection is personally served on you, 8.22 or within 13 days from the date the objection is mailedor given8.23 to you. You may wish to consult an attorney at once if the 8.24 creditor objects to your exemption claim. 8.25 MOTION TO DETERMINE EXEMPTION: 8.26 At any time after your funds have been held, you may ask 8.27 for a court decision on the validity of your exemption claim by 8.28 filing a request for hearing which may be obtained at the office 8.29 of the court administrator of the above court. 8.30 PENALTIES: 8.31 If you claim an exemption in bad faith, or if the judgment 8.32 creditor wrongly objects to an exemption in bad faith, the court 8.33 may order the person who acted in bad faith to pay costs, actual 8.34 damages, attorney fees, and an additional amount of up to $100. 8.35 ............................. 8.36 ............................. 9.1 ............................. 9.2 ............................. 9.3 Name and address of (Attorney 9.4 for) Judgment Creditor 9.5 EXEMPTION: 9.6 (a) Amount of exemption claim. 9.7 / / I claim ALL the funds being held are exempt. 9.8 / / I claim SOME of the funds being held are exempt. 9.9 The exempt amount is $............ 9.10 (b) Basis for exemption. 9.11 Of the 11 categories listed above, I am in category number 9.12 ............ (If more than one category applies, you may fill 9.13 in as many as apply.) The source of the exempt funds is the 9.14 following: 9.15 ............................................................. 9.16 ............................................................. 9.17 ............................................................. 9.18 (If the source is a type of relief based on need, list the 9.19 case number and county: 9.20 case number: ...............; 9.21 county: ....................) 9.22 I hereby authorize any agency that has distributed relief 9.23 to me or any correctional institution in which I was an inmate 9.24 to disclose to the above named creditor or its attorney only 9.25 whether or not I am or have been a recipient of relief based on 9.26 need or an inmate of a correctional institute within the last 9.27 six months. 9.28 I HAVE MAILED OR DELIVERED A COPY OF THE EXEMPTION NOTICE 9.29 TO THEJUDGMENT CREDITOR OR JUDGMENTCREDITOR'S ATTORNEYIF9.30REPRESENTEDAT THE ADDRESS INDICATED ABOVE. 9.31 ............................. 9.32 DEBTOR 9.33 DATED: ............. ............................. 9.34 ............................. 9.35 ............................. 9.36 DEBTOR ADDRESS 10.1 ............................. 10.2 DEBTOR PHONE NUMBER 10.3 Sec. 4. Minnesota Statutes 1998, section 550.143, 10.4 subdivision 7, is amended to read: 10.5 Subd. 7. [NOTICE OF OBJECTION.] (a) The written objection 10.6 to the judgment debtor's claim of exemption must be in 10.7 substantially the following form: 10.8 STATE OF MINNESOTA DISTRICT COURT 10.9 COUNTY OF ............... ..........JUDICIAL DISTRICT 10.10 ...................(Judgment Creditor) OBJECTION TO 10.11 ...................(Judgment Debtor) EXEMPTION CLAIM 10.12 ...................(Garnishee) (Third Party) 10.13 The judgment creditor objects to your claim for exemption 10.14 from garnishment, levy of execution, order for attachment 10.15 (strike inapplicable language) for the following reason(s): 10.16 ................................................................. 10.17 ................................................................. 10.18 ................................................................. 10.19 Because of this objection, your financial institution will 10.20 retain the funds you claimed to be exempt for an additional ten 10.21 days. If you wish to request a hearing on your exemption claim, 10.22 youshouldneed to do so within ten daysof your receipt of this10.23objectionfrom the date the objection was personally served on 10.24 you, or within 13 days of the date the objection was mailed to 10.25 you. You may request a hearing by completing the attached form 10.26 and filing it with the court administrator. 10.27 1. The court administrator's office shall provide clerical 10.28 assistance to help with the writing and filing of a Request for 10.29 Hearing by any person not represented by counsel. The court 10.30 administrator may charge a fee of $1 for the filing of a Request 10.31 for Hearing. 10.32 2. Upon the filing of a Request for Hearing, the court 10.33 administrator shall schedule the matter for a hearing no later 10.34 than five business days from the date of filing. The court 10.35 administrator shall forthwith send a completed copy of the 10.36 request, including the hearing date, time, and place to the 11.1 adverse party and to the financial institution by first class 11.2 mail. 11.3 3. If it is possible that the financial institution might 11.4 not receive the request mailed from the court administrator 11.5 within ten days, then you may want to personally deliver a copy 11.6 of the request to the financial institution after you have filed 11.7 your request with the court. 11.8 4. An order stating whether your funds are exempt shall be 11.9 issued by the court within three days of the date of the hearing. 11.10 If you do not file a Request for Hearing within ten days of 11.11 the dateyou receive this objectionthe objection was personally 11.12 served on you, or within 13 days from the date the objection was 11.13 mailed to you, your financial institution may turn your funds 11.14 over to your creditor. 11.15 If you file a Request for Hearing and your financial 11.16 institution receives it within ten days of the date it received 11.17 this objection, your financial institution will retain your 11.18 funds claimed to be exempt until otherwise ordered by the court. 11.19 ............................ 11.20 Judgment Creditor or Attorney 11.21 Sec. 5. Minnesota Statutes 1998, section 550.143, 11.22 subdivision 8, is amended to read: 11.23 Subd. 8. [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 11.24 request for hearing accompanying the objection notice must be in 11.25 substantially the following form: 11.26 STATE OF MINNESOTA DISTRICT COURT 11.27 COUNTY OF ........ ........JUDICIAL DISTRICT 11.28 ..................(Judgment Creditor) REQUEST FOR HEARING 11.29 ..................(Judgment Debtor) AND 11.30 ..................(Third Party) NOTICE FOR HEARING 11.31 I hereby request a hearing to resolve the exemption claim 11.32 which has been made in this case regarding funds in the account 11.33 of ............. (Judgment Debtor) at the ......... (Financial 11.34 Institution). 11.35 I believe the property being held is exempt because 11.36 ................................................................. 12.1 ................................................................. 12.2 Dated:........................................................... 12.3 (JUDGMENT DEBTOR) 12.4 ................... 12.5 (ADDRESS) 12.6 ................... 12.7 (DEBTOR PHONE NUMBER) 12.8 ................... 12.9 HEARING DATE: ................ TIME: ................... 12.10 HEARING PLACE: ............... 12.11 (Note to both parties: Bring with you to the hearing all 12.12 documents and materials relevant to the exemption claim and 12.13 objection. Failure to do so could delay the court's decision.) 12.14 Sec. 6. Minnesota Statutes 1998, section 551.01, is 12.15 amended to read: 12.16 551.01 [ATTORNEY'S SUMMARY EXECUTION OF JUDGMENT DEBTS; 12.17 WHEN AUTHORIZED.] 12.18 An attorney for a judgment creditor may execute on a money 12.19 judgment by levying on indebtedness owed to the judgment debtor 12.20 by a third party, pursuant to this chapter. The attorney for 12.21 the judgment creditor must obtain a writ of execution issued 12.22 under section 550.04 before the attorney can execute pursuant to 12.23 this chapter. No more than$5,000$10,000 may be recovered by a 12.24 single notice of execution levy pursuant to this section. No 12.25 more than one execution may be served on a single third party by 12.26 a judgment creditor each calendar day under this chapter. 12.27 Sec. 7. Minnesota Statutes 1998, section 551.04, 12.28 subdivision 4, is amended to read: 12.29 Subd. 4. [SERVICE OF THIRD PARTY LEVY; NOTICE AND 12.30 DISCLOSURE FORMS.] When levying upon money or earnings owed to 12.31 the judgment debtor by a third party, the attorney for the 12.32 judgment creditor shall serve a copy of the writ of execution 12.33 upon the third party either by registered or certified mail, or 12.34 by personal service. A third party levy served by registered or 12.35 certified mail is effective if served at the third party's 12.36 regular place of business. Along with a copy of the writ of 13.1 execution, the attorney shall serve upon the third party a 13.2 notice of third party levy and disclosure form that must be 13.3 substantially in the form set forth below. If the levy is upon 13.4 earnings, the attorney shall serve upon the third party the 13.5 notice of third party levy and disclosure form as set forth in 13.6 section 551.06, subdivision 9. 13.7 STATE OF MINNESOTA DISTRICT COURT 13.8 County of ............. ..........JUDICIAL DISTRICT 13.9 File No. .................. 13.10 ..............(Judgment Creditor) 13.11 against NOTICE OF THIRD PARTY 13.12 ..............(Judgment Debtor) LEVY AND DISCLOSURE 13.13 and (OTHER THAN EARNINGS) 13.14 ..............(Third Party) 13.15 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 13.16 chapter 551, the undersigned, as attorney for the judgment 13.17 creditor, hereby makes demand and levies execution upon all 13.18 money due and owing by you (up to$5,000$10,000) to the 13.19 judgment debtor for the amount of the judgment specified below. 13.20 A copy of the writ of execution issued by the court is 13.21 enclosed. The unpaid judgment balance is $....... 13.22 In responding to this levy, you are to complete the 13.23 attached disclosure form and mail it to the undersigned attorney 13.24 for the judgment creditor, together with your check payable to 13.25 the above-named judgment creditor, for the nonexempt amount owed 13.26 by you to the judgment debtor or for which you are obligated to 13.27 the judgment debtor, within the time limits set forth in chapter 13.28 551. 13.29 If you are a financial institution and the judgment debtor 13.30 is a natural person, two exemption notices are also enclosed 13.31 pursuant to Minnesota Statutes, section 551.02. Only natural 13.32 persons are entitled to exemptions under this statute. 13.33 Attorney for the Judgment Creditor 13.34 Address 14.1 (...........) 14.2 Phone number 14.4 DISCLOSURE 14.5 On the ..... day of ............., ......., the time of 14.6 service of the execution levy herein, there was due and owing 14.7 the judgment debtor from the third party the following: 14.8 (1) Money. Enter on the line below any amounts due and 14.9 owing the judgment debtor, except earnings, from the third party. 14.10 ....................................................... 14.11 (2) Setoff. Enter on the line below the amount of any 14.12 setoff, defense, lien, or claim which the third party claims 14.13 against the amount set forth on line (1). State the facts by 14.14 which such setoff, defense, lien, or claim is claimed. (Any 14.15 indebtedness to you incurred by the judgment debtor within ten 14.16 days prior to the receipt of the first execution levy on a debt 14.17 may not be claimed as a setoff, defense, lien, or claim against 14.18 the amount set forth on line (1).) 14.19 .............................................. 14.20 (3) Exemption. Enter on the line below any amounts or 14.21 property claimed by the judgment debtor to be exempt from 14.22 execution. 14.23 .............................................. 14.24 (4) Adverse Interest. Enter on the line below any amounts 14.25 claimed by other persons by reason of ownership or interest in 14.26 the judgment debtor's property. 14.27 .............................................. 14.28 (5) Enter on the line below the total of lines (2), (3), 14.29 and (4). 14.30 ................................................... 14.31 (6) Enter on the line below the difference obtained (never 14.32 less than zero when line (5) is subtracted from the amount on 14.33 line (1)). 14.34 ..................................................... 14.35 (7) Enter on the line below 100 percent of the amount of 14.36 the judgment creditor's claim which remains unpaid. 15.1 ..................................................... 15.2 (8) Enter on the line below the lesser of line (6) and line 15.3 (7). You are hereby instructed to remit this amount only if it 15.4 is $10 or more. 15.5 ..................................................... 15.6 AFFIRMATION 15.7 I, ....................... (person signing Affirmation), am 15.8 the third party or I am authorized by the third party to 15.9 complete this nonearnings disclosure, and have done so 15.10 truthfully and to the best of my knowledge. 15.11 Dated: ................ .................. 15.12 Signature 15.13 .................. 15.14 Title 15.15 .................. 15.16 Telephone Number 15.17 Sec. 8. Minnesota Statutes 1998, section 551.04, 15.18 subdivision 6, is amended to read: 15.19 Subd. 6. [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 15.20 15 days after receipt of the writ of execution, unless governed 15.21 by section 551.05 or 551.06, the third party shall disclose and 15.22 remit to the judgment creditor's attorney as much of the amount 15.23 due under section 550.04, but not more than$5,000$10,000, as 15.24 the third party's own debt equals to the judgment debtor. The 15.25 attorney for the judgment creditor shall proceed in all other 15.26 respects like the sheriff making a similar execution levy. No 15.27 more than$5,000$10,000 may be recovered by a single execution 15.28 levy pursuant to this section. 15.29 Sec. 9. Minnesota Statutes 1998, section 551.04, 15.30 subdivision 9, is amended to read: 15.31 Subd. 9. [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 15.32 DISCLOSE OR REMIT.] Judgment may be entered against a third 15.33 party who has been served with a writ of execution and fails to 15.34 disclose or remit the levied funds as required in this chapter. 15.35 Upon order to show cause served on the third party and notice of 15.36 motion supported by affidavit of facts and affidavit of service 16.1 upon both the judgment debtor and third party, the court may 16.2 render judgment against the third party for an amount not 16.3 exceeding 100 percent of the amount claimed in the execution or 16.4$5,000$10,000, whichever is less. Judgment against the third 16.5 party pursuant to this section shall not bar the judgment 16.6 creditor from further remedies under this chapter as a result of 16.7 any subsequent defaults by the third party. The court upon good 16.8 cause shown may remove the default and permit the third party to 16.9 disclose or remit on just terms. 16.10 Sec. 10. [551.041] [ATTORNEY'S SUMMARY EXECUTION OF FUNDS 16.11 BEING HELD PURSUANT TO GARNISHMENT SUMMONS.] 16.12 Pursuant to this section, an attorney for a judgment 16.13 creditor may execute on funds retained by a garnishee under a 16.14 garnishment summons served pursuant to chapter 571. No more 16.15 than $10,000 may be recovered by a single execution levy 16.16 pursuant to this section. When levying upon money or earnings 16.17 being retained by a garnishee pursuant to a garnishment summons, 16.18 the attorney shall serve a copy of the writ of execution upon 16.19 the garnishee by registered or certified mail, or by personal 16.20 service. Along with a copy of the writ of execution, the 16.21 attorney shall serve upon the garnishee a notice of levy on 16.22 garnishee that must be substantially in the form set forth 16.23 below. If the judgment creditor paid the garnishee the fee 16.24 required by chapter 571, no additional fee must be paid to the 16.25 garnishee for the levy. The notice of levy on garnishee may not 16.26 be served until the judgment debtor's right to claim an 16.27 exemption has expired under chapter 571. 16.28 STATE OF MINNESOTA DISTRICT COURT 16.29 County of ............. ..........JUDICIAL DISTRICT 16.30 File No. .................. 16.31 ............(Judgment Creditor) 16.32 against 16.33 ..............(Judgment Debtor) NOTICE OF LEVY 16.34 and ON GARNISHEE 16.35 ....................(Garnishee) 16.36 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 17.1 chapter 551, the undersigned as attorney for the judgment 17.2 creditor, hereby makes demand and levies execution upon all 17.3 money or earnings being retained by you (up to $10,000) pursuant 17.4 to the judgment creditor's garnishment summons dated 17.5 ................ A copy of the writ of execution issued by the 17.6 court is enclosed. Upon receipt of this levy, you shall remit 17.7 to the judgment creditor's attorney all funds being held by you 17.8 pursuant to the garnishment summons. The funds shall be 17.9 remitted within 15 days after receipt of this levy. 17.10 Date: ............... Attorney for the Judgment Creditor 17.11 Address: ........................ 17.12 .................................. 17.13 Phone Number: ................... 17.14 Attorney I.D. #: ................ 17.15 Sec. 11. [551.042] [MONEY DUE FROM STATE DEPARTMENTS.] 17.16 Money due or owing to any entity or person by the state on 17.17 account of any employment, work, contract with, or services 17.18 provided to any state department or agency is subject to 17.19 attachment. The notice of third party levy and disclosure may 17.20 be served upon the head of the department or agency in the same 17.21 manner as other summons in that court of record, except that 17.22 service may not be made by publication. Service of the notice 17.23 may also be made by certified mail, return receipt requested. 17.24 The disclosure shall be made by the head of the department or 17.25 agency, or by some person designated by the head of the 17.26 department or agency having knowledge of the facts. If payment 17.27 is made pursuant to judgment against the state as a third party, 17.28 a certificate of satisfaction to the extent of the payment 17.29 endorsed on it shall be delivered to the head of the department 17.30 or agency as a voucher for the payment. 17.31 Sec. 12. [551.043] [SALARY OF PUBLIC SERVANTS.] 17.32 The salary or wages of an official or employee of a county, 17.33 town, city, or school district, or any department of these 17.34 bodies, is subject to attachment. The notice of third party 17.35 levy and disclosure shall be served upon the auditor, treasurer, 17.36 or clerk of the body, or head of the department of the body of 18.1 which that person is an official or employee. The disclosure 18.2 shall be made by the officer or person so served, or by some 18.3 person designated by that person having knowledge of the facts. 18.4 If payment is made by the county, town, city, or school 18.5 district, or any department of these bodies pursuant to a 18.6 judgment against it as a third party, a certified copy of the 18.7 judgment with a certificate of satisfaction to the extent of the 18.8 payment endorsed on it shall be delivered to the treasurer as a 18.9 voucher for the payment. 18.10 Sec. 13. Minnesota Statutes 1998, section 551.05, 18.11 subdivision 1a, is amended to read: 18.12 Subd. 1a. [EXEMPTION NOTICE.] If the writ of execution is 18.13 being used by the attorney to levy funds of a judgment debtor 18.14 who is a natural person and if the funds to be levied are held 18.15 on deposit at any financial institution, the attorney for the 18.16 judgment creditor shall serve with the writ of execution two 18.17 copies of an exemption notice. The notice must be substantially 18.18 in the form set forth below. Failure of the attorney for the 18.19 judgment creditor to send the exemption notice renders the 18.20 execution levy void, and the financial institution shall take no 18.21 action. However, if this subdivision is being used to execute 18.22 on funds that have previously been garnished in compliance with 18.23 section 571.71, the attorney for judgment creditor is not 18.24 required to serve an additional exemption notice. In that 18.25 event, the execution levy shall only be effective as to the 18.26 funds that were subject to the prior garnishment. Upon receipt 18.27 of the writ of execution and exemption notices, the financial 18.28 institution shall retain as much of the amount due under section 18.29 550.04 as the financial institution has on deposit owing to the 18.30 judgment debtor, but not more than 100 percent of the amount 18.31 remaining due on the judgment, or$5,000$10,000, whichever is 18.32 less. 18.33 The notice informing a judgment debtor that an execution 18.34 levy has been used to attach funds of the judgment debtor to 18.35 satisfy a claim must be substantially in the following form: 18.36 19.1 STATE OF MINNESOTA DISTRICT COURT 19.2 County of ................ .........JUDICIAL DISTRICT 19.3 ................(Judgment Creditor) 19.4 ................(Judgment Debtor) 19.5 TO: Judgment Debtor EXEMPTION NOTICE 19.6 An order for attachment, garnishment summons, or levy of 19.7 execution (strike inapplicable language) has been served on 19.8 ............. (bank or other financial institution where you 19.9 have an account). 19.10 Your account balance is $........ 19.11 The amount being held is $........ 19.12 However, all or a portion of the funds in your account will 19.13 normally be exempt from creditors' claims if they are in one of 19.14 the following categories: 19.15 (1) relief based on need. This includes: Aid to Families 19.16 with Dependent Children (AFDC), AFDC-Emergency Assistance 19.17 (AFDC-EA), Medical Assistance (MA), General Assistance (GA), 19.18 General Assistance Medical Care (GAMC), Emergency General 19.19 Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 19.20 (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 19.21 Income (SSI), and Energy Assistance; 19.22 (2) Social Security benefits (Old Age, Survivors, or 19.23 Disability Insurance); 19.24 (3) reemployment insurance, workers' compensation, or 19.25 veterans' benefits; 19.26 (4) an accident, disability, or retirement pension or 19.27 annuity; 19.28 (5) life insurance proceeds; 19.29 (6) the earnings of your minor child and any child support 19.30 paid to you; or 19.31 (7) money from a claim for damage or destruction of exempt 19.32 property (such as household goods, farm tools, business 19.33 equipment, a mobile home, or a car). 19.34 The following funds are also exempt: 19.35 (8) all earnings of a person in category (1); 19.36 (9) all earnings of a person who has received relief based 20.1 on need, or who has been an inmate of a correctional 20.2 institution, within the last six months; 20.3 (10) 75 percent of every judgment debtor's after tax 20.4 earnings; or 20.5 (11) all of a judgment debtor's after tax earnings below 40 20.6 times the federal minimum wage. 20.7 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 20.8 Categories (10) and (11): 20 days 20.9 Categories (8) and (9): 60 days 20.10 All others: no time limit, as long as funds are traceable 20.11 to the exempt source. (In tracing funds, the first-in, 20.12 first-out method is used. This means money deposited first is 20.13 spent first.) The money being sought by the judgment creditor 20.14 is being held in your account to give you a chance to claim an 20.15 exemption. 20.16 TO CLAIM AN EXEMPTION: 20.17 Fill out, sign, and mail or deliver one copy of the 20.18 attached exemption claim form to the institution which sent you 20.19 this notice and mail or deliver one copy to the judgment 20.20 creditor's attorney. The address for the judgment creditor's 20.21 attorney is set forth below. Both copies must be mailed or 20.22 delivered on the same day. 20.23 NOTE: You may help resolve your claim faster if you send 20.24 to the creditor's attorney written proof or documents that 20.25 show why your money is exempt. If you have questions 20.26 regarding the documents to send as proof of an exemption, 20.27 call the creditor's attorney. If you do not send written 20.28 proof and the creditor's attorney has questions about your 20.29 exemption claim, the creditor's attorney may object to your 20.30 claim which may result in a further delay in releasing your 20.31 exempt funds. 20.32 If they do not get the exemption claim back from you within 20.33 14 days of the date they mailed or gave it to you, they will be 20.34 free to turn the money over to the attorney for the judgment 20.35 creditor. If you are going to claim an exemption, do so as soon 20.36 as possible, because your money may be held until it is decided. 21.1 IF YOU CLAIM AN EXEMPTION: 21.2 (1) nonexempt money can be turned over to the judgment 21.3 creditor or sheriff; 21.4 (2) the financial institution will keep holding the money 21.5 claimed to be exempt; and 21.6 (3) seven days after receiving your exemption claim, the 21.7 financial institution will release the money to you unless 21.8 before then it receives an objection to your exemption claim. 21.9 IF THEJUDGMENTCREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 21.10 the institution will hold the money until a court decides 21.11 if your exemption claim is valid, BUT ONLY IF the institution 21.12 gets a copy of your court motion papers asserting the exemption 21.13 WITHIN TEN DAYS after the objection is personally served on you, 21.14 or within 13 days from the date the objection is mailedor given21.15 to you. You may wish to consult an attorney at once if the 21.16 judgment creditor objects to your exemption claim. 21.17 MOTION TO DETERMINE EXEMPTION: 21.18 At any time after your funds have been held, you may ask 21.19 for a court decision on the validity of your exemption claim by 21.20 filing a request for hearing which may be obtained at the office 21.21 of the court administrator of the above court. 21.22 PENALTIES: 21.23 If you claim an exemption in bad faith, or if the judgment 21.24 creditor wrongly objects to an exemption in bad faith, the court 21.25 may order the person who acted in bad faith to pay costs, actual 21.26 damages, attorney fees, and an additional amount of up to $100. 21.27 ............................. 21.28 ............................. 21.29 ............................. 21.30 ............................. 21.31 Name and address of (Attorney 21.32 for) Judgment Creditor 21.33 EXEMPTION: 21.34 (a) Amount of exemption claim. 21.35 / / I claim ALL the funds being held are exempt. 21.36 / / I claim SOME of the funds being held are exempt. 22.1 The exempt amount is $............ 22.2 (b) Basis for exemption. 22.3 Of the 11 categories listed above, I am in category number 22.4 ............ (If more than one category applies, you may fill 22.5 in as many as apply.) The source of the exempt funds is the 22.6 following: 22.7 ............................................................. 22.8 ............................................................. 22.9 ............................................................. 22.10 (If the source is a type of relief based on need, list the 22.11 case number and county: 22.12 case number: ...............; 22.13 county: ....................) 22.14 I hereby authorize any agency that has distributed relief 22.15 to me or any correctional institution in which I was an inmate 22.16 to disclose to the above named judgment creditor's attorney only 22.17 whether or not I am or have been a recipient of relief based on 22.18 need or an inmate of a correctional institute within the last 22.19 six months. 22.20 I HAVE MAILED OR DELIVERED A COPY OF THE EXEMPTION NOTICE 22.21 TO THEJUDGMENTCREDITOR'S ATTORNEY AT THE ADDRESS INDICATED 22.22 ABOVE. 22.23 ............................. 22.24 DEBTOR 22.25 DATED: ............. ............................. 22.26 ............................. 22.27 ............................. 22.28 DEBTOR ADDRESS 22.29 ............................. 22.30 DEBTOR PHONE NUMBER 22.31 Sec. 14. Minnesota Statutes 1998, section 551.05, 22.32 subdivision 5, is amended to read: 22.33 Subd. 5. [NOTICE OF OBJECTION.] (a) The written objection 22.34 to the judgment debtor's claim of exemption must be in 22.35 substantially the following form: 22.36 STATE OF MINNESOTA DISTRICT COURT 23.1 County of ............... ..........JUDICIAL DISTRICT 23.2 .................(Judgment Creditor) OBJECTION TO 23.3 .................(Judgment Debtor) EXEMPTION CLAIM 23.4 .................(Garnishee) (Third Party) 23.5 The judgment creditor objects to your claim for exemption 23.6 from garnishment, levy of execution, order for attachment 23.7 (strike inapplicable language) for the following reason(s): 23.8 ................................................................. 23.9 ................................................................. 23.10 ................................................................. 23.11 Because of this objection, your financial institution will 23.12 retain the funds you claimed to be exempt for an additional ten 23.13 days. If you wish to request a hearing on your exemption claim, 23.14 youshouldneed to do so within ten daysof your receipt of this23.15objectionfrom the date the objection was personally served on 23.16 you, or within 13 days from the date the objection was mailed to 23.17 you. You may request a hearing by completing the attached form 23.18 and filing it with the court administrator. 23.19 1. The court administrator's office shall provide clerical 23.20 assistance to help with the writing and filing of a Request for 23.21 Hearing by any person not represented by counsel. The court 23.22 administrator may charge a fee of $1 for the filing of a Request 23.23 for Hearing. 23.24 2. Upon the filing of a Request for Hearing, the court 23.25 administrator shall schedule the matter for a hearing no later 23.26 than five business days from the date of filing. The court 23.27 administrator shall forthwith send a completed copy of the 23.28 request, including the hearing date, time, and place to the 23.29 adverse party and to the financial institution by first class 23.30 mail. 23.31 3. If it is possible that the financial institution might 23.32 not receive the request mailed from the court administrator 23.33 within ten days, then you may want to personally deliver a copy 23.34 of the request to the financial institution after you have filed 23.35 your request with the court. 23.36 4. An order stating whether your funds are exempt shall be 24.1 issued by the court within three days of the date of the hearing. 24.2 If you do not file a Request for Hearing within ten days of 24.3 the date you receive this objection, your financial institution 24.4 may turn your funds over to your judgment creditor. 24.5 If you file a Request for Hearing and your financial 24.6 institution receives it within ten days of the date it received 24.7 this objection, your financial institution will retain your 24.8 funds claimed to be exempt until otherwise ordered by the court. 24.9 .............................. 24.10 Attorney for Judgment Creditor 24.11 Sec. 15. Minnesota Statutes 1998, section 551.06, 24.12 subdivision 9, is amended to read: 24.13 Subd. 9. [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 24.14 WORKSHEET.] The attorney for the judgment creditor shall serve 24.15 upon the judgment debtor's employer a notice of levy on earnings 24.16 and an execution earnings disclosure form and an earnings 24.17 disclosure worksheet with the writ of execution, that must be 24.18 substantially in the form set forth below. 24.19 STATE OF MINNESOTA DISTRICT COURT 24.20 COUNTY OF ................ ......... JUDICIAL DISTRICT 24.21 FILE NO. ..... 24.22 ............(Judgment Creditor) 24.23 against NOTICE OF LEVY ON 24.24 EARNINGS AND DISCLOSURE 24.25 ............(Judgment Debtor) 24.26 and 24.27 ............(Third Party) 24.28 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 24.29 sections 551.04 and 551.06, the undersigned, as attorney for the 24.30 judgment creditor, hereby makes demand and levies execution upon 24.31 all earnings due and owing by you (up to$5,000$10,000) to the 24.32 judgment debtor for the amount of the judgment specified below. 24.33 A copy of the writ of execution issued by the court is 24.34 enclosed. The unpaid judgment balance is $..... 24.35 This levy attaches all unpaid nonexempt disposable earnings 24.36 owing or to be owed by you and earned or to be earned by the 25.1 judgment debtor before and within the pay period in which the 25.2 writ of execution is served and within all subsequent pay 25.3 periods whose paydays occur within the 70 days after the service 25.4 of this levy. 25.5 In responding to this levy, you are to complete the 25.6 attached disclosure form and worksheet and mail it to the 25.7 undersigned attorney for the judgment creditor, together with 25.8 your check payable to the above-named judgment creditor, for the 25.9 nonexempt amount owed by you to the judgment debtor or for which 25.10 you are obligated to the judgment debtor, within the time limits 25.11 set forth in the aforementioned statutes. 25.12 .................................. 25.13 Attorney for the Judgment Creditor 25.14 .................................. 25.15 .................................. 25.16 .................................. 25.17 Address 25.18 (...).......................... 25.19 Phone Number 25.22 DISCLOSURE 25.23 DEFINITIONS 25.24 "EARNINGS": For the purpose of execution, "earnings" means 25.25 compensation paid or payable to an employee for personal 25.26 services or compensation paid or payable to the producer for the 25.27 sale of agricultural products; milk or milk products; or fruit 25.28 or other horticultural products produced when the producer is 25.29 operating a family farm, a family farm corporation, or an 25.30 authorized farm corporation, as defined in section 500.24, 25.31 subdivision 2, whether denominated as wages, salary, commission, 25.32 bonus, or otherwise, and includes periodic payments pursuant to 25.33 a pension or retirement. 25.34 "DISPOSABLE EARNINGS": Means that part of the earnings of 25.35 an individual remaining after the deduction from those earnings 25.36 of amounts required by law to be withheld, including amounts 26.1 required by court order to be withheld for child support 26.2 obligations. (Amounts required by law to be withheld do not 26.3 include items such as health insurance, charitable 26.4 contributions, or other voluntary wage deductions.) 26.5 "PAYDAY": For the purpose of execution, "payday(s)" means 26.6 the date(s) upon which the employer pays earnings to the 26.7 judgment debtor in the ordinary course of business. If the 26.8 judgment debtor has no regular payday, payday(s) means the 15th 26.9 and the last day of each month. 26.10 THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING 26.11 QUESTIONS: 26.12 1. Do you now owe, or within 70 days from the date the 26.13 execution levy was served on you, will you or may you owe money 26.14 to the judgment debtor for earnings? 26.15 Yes ....... No ....... 26.16 2. Does the judgment debtor earn more than $... per week? 26.17 (This amount is the federal minimum wage per week.) 26.18 Yes ....... No ....... 26.19 INSTRUCTIONS FOR COMPLETING THE 26.20 EARNINGS DISCLOSURE 26.21 A. If your answer to either question 1 or 2 is "No," then 26.22 you must sign the affirmation on page 2 and return this 26.23 disclosure to the judgment creditor's attorney within 20 days 26.24 after it was served on you, and you do not need to answer the 26.25 remaining questions. 26.26 B. If your answers to both questions 1 and 2 are "Yes," 26.27 you must complete this form and the Earnings Disclosure 26.28 Worksheet as follows: 26.29 For each payday that falls within 70 days from the date the 26.30 execution levy was served on you, YOU MUST calculate the 26.31 amount of earnings to be retained by completing steps 3 26.32 through 11 on page 2, and enter the amounts on the Earnings 26.33 Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST 26.34 PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 26.35 CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 26.36 Each payday, you must retain the amount of earnings listed 27.1 in column I on the Earnings Disclosure Worksheet. 27.2 You must pay the attached earnings and return this Earnings 27.3 Disclosure Form and the Earnings Disclosure Worksheet to 27.4 the judgment creditor's attorney and deliver a copy to the 27.5 judgment debtor within ten days after the last payday that 27.6 falls within the 70-day period. 27.7 If the judgment is wholly satisfied or if the judgment 27.8 debtor's employment ends before the expiration of the 27.9 70-day period, your disclosure and remittance should be 27.10 made within ten days after the last payday for which 27.11 earnings were attached. 27.12 For steps 3 through 11, "columns" refers to columns on the 27.13 Earnings Disclosure Worksheet. 27.14 3. COLUMN A. Enter the date of judgment debtor's 27.15 payday. 27.16 4. COLUMN B. Enter judgment debtor's gross earnings 27.17 for each payday. 27.18 5. COLUMN C. Enter judgment debtor's disposable earnings 27.19 for each payday. 27.20 6. COLUMN D. Enter 25 percent of disposable earnings. 27.21 (Multiply Column C by .25.) 27.22 7. COLUMN E. Enter here 40 times the hourly federal 27.23 minimum wage ($...) times the number 27.24 of work weeks included in each payday. 27.25 (Note: If a pay period includes days 27.26 in excess of whole work weeks, the additional 27.27 days should be counted as a fraction of a 27.28 work week equal to the number of work days in 27.29 excess of a whole work week divided by the 27.30 number of work days in a normal work week.) 27.31 8. COLUMN F. Subtract the amount in Column E from the 27.32 amount in Column C, and enter here. 27.33 9. COLUMN G. Enter here the lesser of the amount in 27.34 Column D and the amount in Column F. 27.35 10. COLUMN H. Enter here any amount claimed by you as a 27.36 setoff, defense, lien, or claim, or any 28.1 amount claimed by any other person as an 28.2 exemption or adverse interest which would 28.3 reduce the amount of earnings owing to the 28.4 judgment debtor. (Note: Any indebtedness 28.5 to you incurred within ten days prior to your 28.6 receipt of the first execution levy on a debt 28.7 may not be set off against the earnings 28.8 otherwise subject to this levy. Any wage 28.9 assignment made by the judgment debtor 28.10 within ten days prior to your receipt of 28.11 the first execution levy on a debt is void.) 28.12 28.13 You must also describe your claim(s) and the 28.14 claims of others, if known, in the space 28.15 provided below the worksheet and state the 28.16 name(s) and address(es) of these persons. 28.18 Enter zero in Column H if there are no 28.19 claims by you or others which would reduce 28.20 the amount of earnings owing to the judgment 28.21 debtor. 28.23 11. COLUMN I. Subtract the amount in Column H from the 28.24 amount in Column G and enter here. This is 28.25 the amount of earnings that you must retain 28.26 for the payday for which the calculations 28.27 were made. The total of all amounts entered 28.28 in Column I is the amount to be remitted 28.29 to the attorney for the judgment creditor. 28.30 AFFIRMATION 28.31 I, ................... (person signing Affirmation), am the 28.32 third party/employer or I am authorized by the third 28.33 party/employer to complete this earnings disclosure, and have 28.34 done so truthfully and to the best of my knowledge. 28.35 Dated: ............ ........................ 28.36 Signature 29.1 ........................ 29.2 Title 29.3 ........................ 29.4 Telephone Number 29.5 EARNINGS DISCLOSURE WORKSHEET 29.6 ................... 29.7 Judgment Debtor's Name 29.8 A B C 29.9 Payday Gross Disposable 29.10 Date Earnings Earnings 29.11 1. ................. $................. $................. 29.12 2. ................. .................. .................. 29.13 3. ................. .................. .................. 29.14 4. ................. .................. .................. 29.15 5. ................. .................. .................. 29.16 6. ................. .................. .................. 29.17 7. ................. .................. .................. 29.18 8. ................. .................. .................. 29.19 9. ................. .................. .................. 29.20 10. ................. .................. .................. 29.23 D E F 29.24 25% of 40 X Min. Column C 29.25 Column C Wage minus 29.26 Column E 29.28 1. ................. .................. ................. 29.29 2. ................. .................. ................. 29.30 3. ................. .................. ................. 29.31 4. ................. .................. ................. 29.32 5. ................. .................. ................. 29.33 6. ................. .................. ................. 29.34 7. ................. .................. ................. 29.35 8. ................. .................. ................. 29.36 9. ................. .................. ................. 30.1 10. ................. .................. ................. 30.2 G H I 30.3 Lesser of Setoff, Lien, Column G 30.4 Column D Adverse minus 30.5 and Interest, or Column H 30.6 Column F Other Claims 30.7 1. ................. .................. ................. 30.8 2. ................. .................. ................. 30.9 3. ................. .................. ................. 30.10 4. ................. .................. ................. 30.11 5. ................. .................. ................. 30.12 6. ................. .................. ................. 30.13 7. ................. .................. ................. 30.14 8. ................. .................. ................. 30.15 9. ................. .................. ................. 30.16 10. ................. .................. ................. 30.17 TOTAL OF COLUMN I $................ 30.18 *If you entered any amount in Column H for any payday(s), 30.19 you must describe below either your claims, or the claims of 30.20 others. For amounts claimed by others, you must both state the 30.21 names and addresses of these persons, and the nature of their 30.22 claim, if known. 30.23 ................................................................. 30.24 ................................................................. 30.25 ..... ........................................................... 30.26 AFFIRMATION 30.27 I, ................. (person signing Affirmation), am the 30.28 third party or I am authorized by the third party to complete 30.29 this earnings disclosure worksheet, and have done so truthfully 30.30 and to the best of my knowledge. 30.31 ................. 30.32 Title 30.33 Dated: ........ ............... (...)............ 30.34 Signature Phone Number 30.35 Sec. 16. Minnesota Statutes 1998, section 551.06, 30.36 subdivision 10, is amended to read: 31.1 Subd. 10. [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND 31.2 WORKSHEET FOR CHILD SUPPORT JUDGMENT.] The attorney for the 31.3 judgment creditor shall serve upon the judgment debtor's 31.4 employer a notice of levy on earnings and an execution earnings 31.5 disclosure form and an earnings disclosure worksheet with the 31.6 writ of execution, that must be substantially in the form set 31.7 forth below. 31.8 STATE OF MINNESOTA DISTRICT COURT 31.9 COUNTY OF ................ ......... JUDICIAL DISTRICT 31.10 FILE NO. ..... 31.11 ............(Judgment Creditor) 31.12 against NOTICE OF LEVY ON 31.13 EARNINGS AND DISCLOSURE 31.14 ............(Judgment Debtor) 31.15 and 31.16 ............(Third Party) 31.17 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 31.18 sections 551.04 and 551.06, the undersigned, as attorney for the 31.19 judgment creditor, hereby makes demand and levies execution upon 31.20 all earnings due and owing by you (up to$5,000$10,000) to the 31.21 judgment debtor for the amount of the judgment specified below. 31.22 A copy of the writ of execution issued by the court is 31.23 enclosed. The unpaid judgment balance is $..... 31.24 This levy attaches all unpaid nonexempt disposable earnings 31.25 owing or to be owed by you and earned or to be earned by the 31.26 judgment debtor before and within the pay period in which the 31.27 writ of execution is served and within all subsequent pay 31.28 periods whose paydays occur within the 70 days after the service 31.29 of this levy. 31.30 In responding to this levy, you are to complete the 31.31 attached disclosure form and worksheet and mail it to the 31.32 undersigned attorney for the judgment creditor, together with 31.33 your check payable to the above-named judgment creditor, for the 31.34 nonexempt amount owed by you to the judgment debtor or for which 31.35 you are obligated to the judgment debtor, within the time limits 31.36 set forth in the aforementioned statutes. 32.1 .................................. 32.2 Attorney for the Judgment Creditor 32.3 .................................. 32.4 .................................. 32.5 .................................. 32.6 Address 32.7 (...).......................... 32.8 Phone Number 32.11 DISCLOSURE 32.12 DEFINITIONS 32.13 "EARNINGS": For the purpose of execution, "earnings" means 32.14 compensation paid or payable to an employee for personal 32.15 services or compensation paid or payable to the producer for the 32.16 sale of agricultural products; milk or milk products; or fruit 32.17 or other horticultural products produced when the producer is 32.18 operating a family farm, a family farm corporation, or an 32.19 authorized farm corporation, as defined in section 500.24, 32.20 subdivision 2, whether denominated as wages, salary, commission, 32.21 bonus, or otherwise, and includes periodic payments pursuant to 32.22 a pension or retirement, workers' compensation, or reemployment 32.23 insurance. 32.24 "DISPOSABLE EARNINGS": Means that part of the earnings of 32.25 an individual remaining after the deduction from those earnings 32.26 of amounts required by law to be withheld, including amounts 32.27 required by court order to be withheld for child support 32.28 obligations. (Amounts required by law to be withheld do not 32.29 include items such as health insurance, charitable 32.30 contributions, or other voluntary wage deductions.) 32.31 "PAYDAY": For the purpose of execution, "payday(s)" means 32.32 the date(s) upon which the employer pays earnings to the debtor 32.33 in the ordinary course of business. If the judgment debtor has 32.34 no regular payday, payday(s) means the 15th and the last day of 32.35 each month. 32.36 THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING QUESTION: 33.1 (1) Do you now owe, or within 70 days from the date the 33.2 execution levy was served on you, will you or may you owe money 33.3 to the judgment debtor for earnings? 33.4 ....... ....... 33.5 Yes No 33.6 INSTRUCTIONS FOR COMPLETING THE 33.7 EARNINGS DISCLOSURE 33.8 A. If your answer to question 1 is "No," then you must 33.9 sign the affirmation below and return this disclosure to the 33.10 judgment creditor's attorney within 20 days after it was served 33.11 on you, and you do not need to answer the remaining questions. 33.12 B. If your answer to question 1 is "Yes," you must 33.13 complete this form and the Earnings Disclosure Worksheet as 33.14 follows: 33.15 For each payday that falls within 70 days from the date the 33.16 execution levy was served on you, YOU MUST calculate the 33.17 amount of earnings to be retained by completing steps 2 33.18 through 8 on page 2, and enter the amounts on the Earnings 33.19 Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST 33.20 PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 33.21 CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 33.22 Each payday, you must retain the amount of earnings listed 33.23 in column G on the Earnings Disclosure Worksheet. 33.24 You must pay the attached earnings and return this earnings 33.25 disclosure form and the Earnings Disclosure Worksheet to 33.26 the judgment creditor's attorney and deliver a copy of the 33.27 disclosure and worksheet to the judgment debtor within ten 33.28 days after the last payday that falls within the 70-day 33.29 period. If the judgment is wholly satisfied or if the 33.30 judgment debtor's employment ends before the expiration of 33.31 the 70-day period, your disclosure and remittance should be 33.32 made within ten days after the last payday for which 33.33 earnings were attached. 33.34 For steps 2 through 8, "columns" refers to columns on the 33.35 Earnings Disclosure Worksheet. 33.36 (2) COLUMN A. Enter the date of judgment debtor's payday. 34.1 (3) COLUMN B. Enter judgment debtor's gross earnings for 34.2 each payday. 34.3 (4) COLUMN C. Enter judgment debtor's disposable earnings 34.4 for each payday. 34.5 (5) COLUMN D. Enter either 50, 55, 60, or 65 percent of 34.6 disposable earnings, based on which of the following 34.7 descriptions fits the child support judgment debtor: 34.8 (a) 50 percent of the judgment debtor's disposable income, 34.9 if the judgment debtor is supporting a spouse or dependent child 34.10 and the judgment is 12 weeks old or less (12 weeks to be 34.11 calculated to the beginning of the work week in which the 34.12 execution levy is received); 34.13 (b) 55 percent of the judgment debtor's disposable income, 34.14 if the judgment debtor is supporting a spouse or dependent 34.15 child, and the judgment is over 12 weeks old (12 weeks to be 34.16 calculated to the beginning of the work week in which the 34.17 execution levy is received); 34.18 (c) 60 percent of the judgment debtor's disposable income, 34.19 if the judgment debtor is not supporting a spouse or dependent 34.20 child and the judgment is 12 weeks old or less (12 weeks to be 34.21 calculated to the beginning of the work week in which the 34.22 execution levy is received); or 34.23 (d) 65 percent of the judgment debtor's disposable income, 34.24 if the judgment debtor is not supporting a spouse or dependent 34.25 child, and the judgment is over 12 weeks old (12 weeks to be 34.26 calculated to the beginning of the work week in which the 34.27 execution levy is received). (Multiply column C by .50, .55, 34.28 .60, or .65, as appropriate.) 34.29 (6) COLUMN E. Enter here any amount claimed by you as a 34.30 setoff, defense, lien, or claim, or any amount claimed by any 34.31 other person as an exemption or adverse interest that would 34.32 reduce the amount of earnings owing to the judgment debtor. 34.33 (Note: Any indebtedness to you incurred within ten days prior 34.34 to your receipt of the first execution levy on a debt may not be 34.35 set off against the earnings otherwise subject to this levy. 34.36 Any wage assignment made by the judgment debtor within ten days 35.1 prior to your receipt of the first execution levy on a debt is 35.2 void.) 35.3 You must also describe your claim(s) and the claims of 35.4 others, if known, in the space provided below the worksheet and 35.5 state the name(s) and address(es) of these persons. 35.6 Enter zero in column E if there are no claims by you or 35.7 others that would reduce the amount of earnings owing to the 35.8 judgment debtor. 35.9 (7) COLUMN F. Subtract the amount in column E from the 35.10 amount in column D and enter here. This is the amount of 35.11 earnings that you must remit for the payday for which the 35.12 calculations were made. 35.13 AFFIRMATION 35.14 I, ................... (person signing Affirmation), am the 35.15 third party/employer or I am authorized by the third 35.16 party/employer to complete this earnings disclosure, and have 35.17 done so truthfully and to the best of my knowledge. 35.18 Dated: ............ ............................ 35.19 Signature 35.20 ............................ 35.21 Title 35.22 ............................ 35.23 Telephone Number 35.24 EARNINGS DISCLOSURE WORKSHEET ................... 35.25 Debtor's Name 35.26 A B C 35.27 Payday Gross Disposable 35.28 Date Earnings Earnings 35.29 1. ........ $....... $......... 35.30 2. ........ ........ .......... 35.31 3. ........ ........ .......... 35.32 4. ........ ........ .......... 35.33 5. ........ ........ .......... 35.34 6. ........ ........ .......... 35.35 7. ........ ........ .......... 35.36 8. ........ ........ .......... 36.1 9. ........ ........ .......... 36.2 10. ........ ........ .......... 36.3 D E F 36.4 Either 50, 55, Setoff, Lien, Column D 36.5 60, or 65% of Adverse minus 36.6 Column C Interest, or Column E 36.7 Other Claims 36.8 1. ........ .......... .......... 36.9 2. ........ .......... .......... 36.10 3. ........ .......... .......... 36.11 4. ........ .......... .......... 36.12 5. ........ .......... .......... 36.13 6. ........ .......... .......... 36.14 7. ........ .......... .......... 36.15 8. ........ .......... .......... 36.16 9. ........ .......... .......... 36.17 10. ........ .......... .......... 36.18 TOTAL OF COLUMN F $............ 36.19 *If you entered any amount in column E for any payday(s), 36.20 you must describe below either your claims, or the claims of 36.21 others. For amounts claimed by others, you must both state the 36.22 names and addresses of such persons, and the nature of their 36.23 claim, if known. 36.24 36.25 ................................................................. 36.26 ................................................................. 36.27 ................................................................. 36.28 AFFIRMATION 36.29 I, ................. (person signing Affirmation), am the 36.30 third party or I am authorized by the third party to complete 36.31 this earnings disclosure worksheet, and have done so truthfully 36.32 and to the best of my knowledge. 36.33 ................. 36.34 Signature 36.35 Dated: ........ ............... (...)............ 36.36 Title Phone Number 37.1 Sec. 17. Minnesota Statutes 1998, section 571.72, 37.2 subdivision 2, is amended to read: 37.3 Subd. 2. [SERVICE OF A GARNISHMENT SUMMONS.] To enforce a 37.4 claim asserted in a civil action venued in a court of record, a 37.5 garnishment summons may be issued by a creditor and served upon 37.6 the garnishee in the same manner as other summons in that court 37.7 of record, except that service may not be made by publication. 37.8 Service of a garnishment summons on the garnishee may also be 37.9 made by certified mail, return receipt requested. A garnishment 37.10 summons served by certified mail is effective if served at the 37.11 garnishee's regular place of business. The effective date of 37.12 service by certified mail is the time of receipt by the 37.13 garnishee. A single garnishment summons may be addressed to two 37.14 or more garnishees but must state whether each is summoned 37.15 separately or jointly. 37.16 The garnishment summons must state: 37.17 (1) the full name of the debtor, the debtor's last known 37.18 mailing address, and the amount of the claim that remains 37.19 unpaid; 37.20 (2) the date of the entry of judgment against the debtor or 37.21 that the debtor is in default pursuant to Rule 55.01 of the 37.22 Minnesota Rules of Civil Procedure for the District Courts. 37.23 Where there is a prejudgment garnishment pursuant to section 37.24 571.93, the garnishment summons must include a copy of the court 37.25 order; 37.26 (3) if the garnishment is on any indebtedness, money, or 37.27 property other than earnings, the garnishee shall serve upon the 37.28 creditor and upon the debtor within 20 days after service of the 37.29 garnishment summons, a written disclosure, of the garnishee's 37.30 indebtedness, money, or other property owing to the debtor and 37.31 answers to all written interrogatories that are served with the 37.32 garnishment summons. The garnishment summons shall also state 37.33 that if the garnishment is on earnings and the debtor has 37.34 garnishable earnings, the garnishee shall serve the disclosure 37.35 within ten days of the last payday to occur within the 70 days 37.36 after the date of service of the garnishment summons; 38.1 (4) that the creditor shall not require disclosure of the 38.2 disposable earnings, indebtedness, money, or property of debtor 38.3 in the garnishee's possession or under the garnishee's control 38.4 in excess of 110 percent of the amount of the claim that remains 38.5 unpaid; 38.6 (5) that the garnishee shall retain disposable earnings, 38.7 indebtedness, money, or property of the debtor in the 38.8 garnishee's possession or under the garnishee's control not in 38.9 excess of 110 percent of the amount of the claim that remains 38.10 unpaid, until the creditor causes a writ of execution to be 38.11 served upon the garnishee, until the debtor authorizes release 38.12 to the creditor, until the creditor authorizes release to the 38.13 debtor, upon court order, or by operation of law; 38.14 (6) that after the expiration of the period of time 38.15 specified in section 571.79 from the date of service of the 38.16 garnishment summons, the garnishee's retention obligation 38.17 automatically expires; 38.18 (7) that an assignment of wages made by the debtor within 38.19 ten days before the service of the first garnishment summons on 38.20 a debt is void and that any indebtedness to the garnishee 38.21 incurred with ten days before the service of the first 38.22 garnishment summons on a debt may not be set off against amounts 38.23 otherwise subject to the garnishment. 38.24 Sec. 18. Minnesota Statutes 1998, section 571.74, is 38.25 amended to read: 38.26 571.74 [GARNISHMENT SUMMONS AND NOTICE TO DEBTOR.] 38.27 The garnishment summons and notice to debtor must be 38.28 substantially in the following form. The notice to debtor must 38.29 be in no smaller than 14-point type. 38.30 GARNISHMENT SUMMONS 38.31 STATE OF MINNESOTA DISTRICT COURT 38.32 COUNTY OF ................. ..........JUDICIAL DISTRICT 38.33 .......................(Creditor) 38.34 .......................(Debtor) UNPAID BALANCE........ 38.35 .......................(Debtor's Address) Date of Entry 38.36 .......................(Garnishee) of Judgment (or) Subject 39.1 to Minnesota Statutes, 39.2 section 571.71, subd. 2 39.3 GARNISHMENT SUMMONS 39.4 The State of Minnesota 39.5 To the Garnishee named above: 39.6 You are hereby summoned and required to serve upon the 39.7 creditor's attorney (or the creditor if not represented by an 39.8 attorney) and on the debtor within 20 days after service of this 39.9 garnishment summons upon you, a written disclosure, ofthe39.10indebtedness, money, or other property that you owe to the39.11debtorthe nonexempt indebtedness, money, or other property due 39.12 or belonging to the debtor and owing by you or in your 39.13 possession or under your control and answers to all written 39.14 interrogatories that are served with the garnishment summons. 39.15 However, if the garnishment is on earnings and the debtor has 39.16 garnishable earnings, you shall serve the completed disclosure 39.17 form on the creditor's attorney, or the creditor if not 39.18 represented by an attorney, within ten days of the last payday 39.19 to occur within the 70 days after the date of the service of 39.20 this garnishment summons. "Payday" means the day which you pay 39.21 earnings in the ordinary course of business. If the debtor has 39.22 no regular paydays, "payday" means the 15th day and the last day 39.23 of each month. 39.24 Your disclosure need not exceed 110 percent of the amount 39.25 of the creditor's claim that remains unpaid. 39.26 You shall retain garnishable earnings, other indebtedness, 39.27 money, or other property in your possession in an amount not to 39.28 exceed 110 percent of the creditor's claim until such time as 39.29 the creditor causes a writ of execution to be served upon you, 39.30 until the debtor authorizes you in writing to release the 39.31 property to the creditor, or until the expiration of ...... days 39.32 from the date of service of this garnishment summons upon you, 39.33 at which time you shall return the disposable earnings, other 39.34 indebtedness, money, or other property to the debtor. 39.35 EARNINGS 39.36 In the event you are summoned as a garnishee because you 40.1 owe "earnings" (as defined on the Earnings Garnishment 40.2 Disclosure form attached to this Garnishment Summons, if 40.3 applicable) to the debtor, then you are required to serve upon 40.4 the creditor's attorney, or the creditor if not represented by 40.5 an attorney, a written earnings disclosure form within the time 40.6 limit set forth above. 40.7 In the case of earnings you are further required to retain 40.8 in your possession all unpaid nonexempt disposable earnings owed 40.9 or to be owed by you and earned or to be earned to the debtor 40.10 within the pay period in which this garnishment summons is 40.11 served and within all subsequent pay periods whose paydays 40.12 (defined above) occur within the 70 days after the date of 40.13 service of this garnishment summons. 40.14 Any assignment of earnings made by the debtor to any party 40.15 within ten days before the receipt of the first garnishment on a 40.16 debt is void. Any indebtedness to you incurred by the debtor 40.17 within the ten days before the receipt of the first garnishment 40.18 on a debt may not be set off against amounts otherwise subject 40.19 to the garnishment. 40.20 You are prohibited by law from discharging or disciplining 40.21 the debtor because the debtor's earnings have been subject to 40.22 garnishment. 40.23 This Garnishment Summons includes: 40.24 (check applicable box) 40.25 ..... Earnings garnishment 40.26 (see attached Earnings Disclosure Form) 40.27 ..... Nonearnings garnishment 40.28 (see attached Nonearnings Disclosure Form) 40.29 ..... Both Earnings and Nonearnings garnishment 40.30 (see both attached Earnings and Nonearnings 40.31 Disclosure Form) 40.32 NOTICE TO DEBTOR 40.33 A Garnishment Summons, Earnings Garnishment Disclosure 40.34 form, Nonwage Garnishment Disclosure form, Garnishment Exemption 40.35 Notices and/or written Interrogatories (strike out if not 40.36 applicable), copies of which are hereby served on you, were 41.1 served upon the Garnishee by delivering copies to the 41.2 Garnishee. The Garnishee was paid $15. 41.3 Dated: ............... ............................... 41.4 Attorney for Creditor 41.5 (or creditor) 41.6 ............................... 41.7 ............................... 41.8 ............................... 41.9 Address 41.10 ............................... 41.11 Telephone 41.12 ............................... 41.13 Attorney I.D. No. 41.14 Sec. 19. Minnesota Statutes 1998, section 571.75, 41.15 subdivision 2, is amended to read: 41.16 Subd. 2. [CONTENTS OF DISCLOSURE.] The disclosure must 41.17 state: 41.18 (a) If an earnings garnishment disclosure, the amount of 41.19 disposable earnings earned by the debtor within the debtor's pay 41.20 periods as specified in section 571.921. 41.21 (b) If a nonearnings garnishment disclosure, a description 41.22 of any personal property or any instrument or papers relating to 41.23 this property belonging to the judgment debtor or in which the 41.24 debtor is interested or other indebtedness of the garnishee to 41.25 the debtor. 41.26 (c) If the garnishee asserts any setoff, defense, claim, or 41.27 lien on disposable earnings, other indebtedness, money, or 41.28 property, the garnishee shall disclose the amount and the facts 41.29 concerning the same. 41.30 (d) Whether the debtor asserts any exemption, or any other 41.31 objection, known to the garnishee against the right of the 41.32 creditor to garnish the disposable earnings, other indebtedness, 41.33 money, or property disclosed. 41.34 (e) If other persons assert claims to any disposable 41.35 earnings, other indebtedness, money, or property disclosed, the 41.36 garnishee shall disclose the names and addresses of these 42.1 claimants and, so far as known by the garnishee, the nature of 42.2 their claims. 42.3 (f) The garnishment disclosure forms and earnings 42.4 disclosure worksheet must be the same or substantially similar 42.5 to the following forms. If the garnishment affects earnings of 42.6 the debtor, the creditor shall use the earnings garnishment 42.7 disclosure form. If the garnishment affects any indebtedness, 42.8 money, or property of the debtor, other than earnings, the 42.9 creditor shall use the nonearnings garnishment disclosure form. 42.10 Nothing contained in this paragraph limits the simultaneous use 42.11 of the earnings and nonearnings garnishment disclosure forms. 42.12 EARNINGS DISCLOSURE FORM AND WORKSHEET 42.13 STATE OF MINNESOTA DISTRICT COURT 42.14 COUNTY OF .................. ...... JUDICIAL DISTRICT 42.15 .................(Creditor) 42.16 .................(Debtor) GARNISHMENT 42.17 .................(Garnishee) EARNINGS DISCLOSURE 42.18 DEFINITIONS 42.19 "EARNINGS": For the purpose of garnishment, "earnings" 42.20 means compensation paid or payable to an employee for personal 42.21 services or compensation paid or payable to the producer for the 42.22 sale of agricultural products; milk or milk products; or fruit 42.23 or other horticultural products produced when the producer is 42.24 operating a family farm, a family farm corporation, or an 42.25 authorized farm corporation, as defined in section 500.24, 42.26 subdivision 2, whether denominated as wages, salary, commission, 42.27 bonus, or otherwise, and includes periodic payments pursuant to 42.28 a pension or retirement. 42.29 "DISPOSABLE EARNINGS": Means that part of the earnings of 42.30 an individual remaining after the deduction from those earnings 42.31 of amounts required by law to be withheld, including amounts 42.32 required by court order to be withheld for child support 42.33 obligations. (Amounts required by law to be withheld do not 42.34 include items such as health insurance, charitable 42.35 contributions, or other voluntary wage deductions.) 42.36 "PAYDAY": For the purpose of garnishment, "payday(s)" 43.1 means the date(s) upon which the employer pays earnings to the 43.2 debtor in the ordinary course of business. If the debtor has no 43.3 regular payday, payday(s) means the fifteenth and the last day 43.4 of each month. 43.5 THE GARNISHEE MUST ANSWER THE FOLLOWING QUESTIONS: 43.6 1. Do you now owe, or within 70 days from the date the 43.7 garnishment summons was served on you, will you or do you expect 43.8 to owe money to the debtor for earnings? 43.9 Yes ....... No ........ 43.10 2. Does the debtor earn more than $........ per week? 43.11 (This amount is the federal minimum wage per week.) 43.12 Yes ....... No ........ 43.13 INSTRUCTIONS FOR COMPLETING THE 43.14 EARNINGS DISCLOSURE 43.15 A. If your answer to either question 1 or 2 is "No," then 43.16 you must sign the affirmation on Page 2 and return this 43.17 disclosure to the creditor's attorney (or the creditor if not 43.18 represented by an attorney) within 20 days after it was served 43.19 on you, and you do not need to answer the remaining questions. 43.20 B. If your answers to both questions 1 and 2 are "Yes," 43.21 you must complete this form and the Earnings Disclosure 43.22 Worksheet as follows: 43.23 For each payday that falls within 70 days from the date the 43.24 garnishment summons was served on you, YOU MUST calculate 43.25 the amount of earnings to be retained by completing Steps 3 43.26 through 11, and enter the amounts on the Earnings 43.27 Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST 43.28 PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 43.29 CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 43.30 Each payday, you must retain the amount of earnings listed 43.31 in Column I on the Earnings Disclosure Worksheet. 43.32 You must return this Earnings Disclosure Form and the 43.33 Earnings Disclosure Worksheet to the creditor's attorney 43.34 (or the creditor if not represented by an attorney) and 43.35 deliver a copy to the debtor within ten days after the last 43.36 payday that falls within the 70-day period. 44.1 If the claim is wholly satisfied or if the debtor's 44.2 employment ends before the expiration of the 70-day period, 44.3 your disclosure should be made within ten days after the 44.4 last payday for which earnings were attached. 44.5 For Steps 3 through 11, "Columns" refers to columns on the 44.6 Earnings Disclosure Worksheet. 44.7 3. COLUMN A. Enter the date of debtor's 44.8 payday. 44.9 4. COLUMN B. Enter debtor's gross earnings for 44.10 each payday. 44.11 5. COLUMN C. Enter debtor's disposable earnings 44.12 for each payday. 44.13 6. COLUMN D. Enter 25 percent of disposable earnings. 44.14 (Multiply Column C by .25.) 44.15 7. COLUMN E. Enter here 40 times the hourly federal 44.16 minimum wage ($....) times the number 44.17 of work weeks included in each payday. (Note: 44.18 If a pay period includes days in excess of 44.19 whole work weeks, the additional days should 44.20 be counted as a fraction of a work week equal 44.21 to the number of work days in excess of a 44.22 whole work week divided by the number of work 44.23 days in a normal work week.) 44.24 8. COLUMN F. Subtract the amount in Column E from the 44.25 amount in Column C, and enter here. 44.26 9. COLUMN G. Enter here the lesser of the amount in 44.27 Column D and the amount in Column F. 44.28 10. COLUMN H. Enter here any amount claimed by you as a 44.29 setoff, defense, lien, or claim, or any 44.30 amount claimed by any other person as an 44.31 exemption or adverse interest which would 44.32 reduce the amount of earnings owing to the 44.33 debtor. (Note: Any indebtedness to you 44.34 incurred by the debtor within the ten 44.35 days before the receipt of the first 44.36 garnishment on a debt may not be set 45.1 off against amounts otherwise subject to 45.2 the garnishment. Any assignment of earnings 45.3 made by the debtor to any party within ten 45.4 days before the receipt of the first 45.5 garnishment on a debt is void.) 45.7 You must also describe your claim(s) and the 45.8 claims of others, if known, in the space 45.9 provided below the worksheet and state the 45.10 name(s) and address(es) of these persons. 45.12 Enter zero in Column H if there are no 45.13 claims by you or others which would reduce 45.14 the amount of earnings owing to the debtor. 45.15 11. COLUMN I. Subtract the amount in Column H from the 45.16 amount in Column G and enter here. This is 45.17 the amount of earnings that you must retain 45.18 for the payday for which the calculations 45.19 were made. 45.20 AFFIRMATION 45.21 I, ...................... (person signing Affirmation), am 45.22 the garnishee or I am authorized by the garnishee to complete 45.23 this earnings disclosure, and have done so truthfully and to the 45.24 best of my knowledge. 45.25 Dated: .................. ................................ 45.26 Signature 45.27 ................................ 45.28 Title 45.29 ................................ 45.30 Telephone Number 45.31 EARNINGS DISCLOSURE WORKSHEET 45.32 ............................. 45.33 Debtor's Name 45.34 A B C 45.35 Payday Gross Disposable 45.36 Date Earnings Earnings 46.2 1. ................. ................. ................. 46.3 2. ................. ................. ................. 46.4 3. ................. ................. ................. 46.5 4. ................. ................. ................. 46.6 5. ................. ................. ................. 46.7 6. ................. ................. ................. 46.8 7. ................. ................. ................. 46.9 8. ................. ................. ................. 46.10 9. ................. ................. ................. 46.11 10. ................. ................. ................. 46.14 D E F 46.15 25% of 40 X Min. Column C 46.16 Column C Wage minus 46.17 Column E 46.19 1. ................. ................. ................ 46.20 2. ................. ................. ................ 46.21 3. ................. ................. ................ 46.22 4. ................. ................. ................ 46.23 5. ................. ................. ................ 46.24 6. ................. ................. ................ 46.25 7. ................. ................. ................ 46.26 8. ................. ................. ................ 46.27 9. ................. ................. ................ 46.28 10. ................. ................. ................ 46.31 G H I 46.32 Lesser of Setoff, Lien, Column G 46.33 Column D Adverse minus 46.34 and Interest, or Column H 46.35 Column F Other Claims 47.1 1. ................. ................. ................. 47.2 2. ................. ................. ................. 47.3 3. ................. ................. ................. 47.4 4. ................. ................. ................. 47.5 5. ................. ................. ................. 47.6 6. ................. ................. ................. 47.7 7. ................. ................. ................. 47.8 8. ................. ................. ................. 47.9 9. ................. ................. ................. 47.10 10. ................. ................. ................. 47.11 TOTAL OF COLUMN I $................ 47.13 *If you entered any amount in Column H for any payday(s), 47.14 you must describe below either your claims, or the claims of 47.15 others. For amounts claimed by others you must both state the 47.16 names and addresses of these persons, and the nature of their 47.17 claim, if known. 47.18 ........................................................... 47.19 .......................................................... 47.20 .......................................................... 47.21 AFFIRMATION 47.22 I, ........................ (person signing Affirmation), 47.23 am the third party or I am authorized by the third party to 47.24 complete this earnings disclosure worksheet, and have done so 47.25 truthfully and to the best of my knowledge. 47.26 Dated: ............................... 47.27 Signature ............................. 47.28 Title ................................. 47.29 Telephone Number (...)................. 47.30 EARNINGS DISCLOSURE FORM AND WORKSHEET 47.31 FOR CHILD SUPPORT DEBTOR 47.32 STATE OF MINNESOTA DISTRICT COURT 47.33 COUNTY OF .................. ...... JUDICIAL DISTRICT 47.34 .................(Creditor) 47.35 .................(Debtor) GARNISHMENT 47.36 .................(Garnishee) EARNINGS DISCLOSURE 48.1 DEFINITIONS 48.2 "EARNINGS": For the purpose of execution, "earnings" means 48.3 compensation paid or payable to an employee for personal 48.4 services or compensation paid or payable to the producer for the 48.5 sale of agricultural products; milk or milk products; or fruit 48.6 or other horticultural products produced when the producer is 48.7 operating a family farm, a family farm corporation, or an 48.8 authorized farm corporation, as defined in section 500.24, 48.9 subdivision 2, whether denominated as wages, salary, commission, 48.10 bonus, or otherwise, and includes periodic payments pursuant to 48.11 a pension or retirement, workers' compensation, or reemployment 48.12 insurance. 48.13 "DISPOSABLE EARNINGS": Means that part of the earnings of 48.14 an individual remaining after the deduction from those earnings 48.15 of amounts required by law to be withheld, including amounts 48.16 required by court order to be withheld for child support 48.17 obligations. (Amounts required by law to be withheld do not 48.18 include items such as health insurance, charitable 48.19 contributions, or other voluntary wage deductions.) 48.20 "PAYDAY": For the purpose of execution, "payday(s)" means 48.21 the date(s) upon which the employer pays earnings to the debtor 48.22 in the ordinary course of business. If the judgment debtor has 48.23 no regular payday, payday(s) means the 15th and the last day of 48.24 each month. 48.25 THE GARNISHEE MUST ANSWER THE FOLLOWING QUESTION: 48.26 (1) Do you now owe, or within 70 days from the date the 48.27 execution levy was served on you, will you or may you owe money 48.28 to the debtor for earnings? 48.29 ....... ....... 48.30 Yes No 48.31 INSTRUCTIONS FOR COMPLETING THE 48.32 EARNINGS DISCLOSURE 48.33 A. If your answer to question 1 is "No," then you must 48.34 sign the affirmation below and return this disclosure to the 48.35 creditor's attorney (or the creditor if not represented by an 48.36 attorney) within 20 days after it was served on you, and you do 49.1 not need to answer the remaining questions. 49.2 B. If your answer to question 1 is "Yes," you must 49.3 complete this form and the Earnings Disclosure Worksheet as 49.4 follows: 49.5 For each payday that falls within 70 days from the date the 49.6 garnishment summons was served on you, YOU MUST calculate 49.7 the amount of earnings to be retained by completing steps 2 49.8 through 8 on page 2, and enter the amounts on the Earnings 49.9 Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST 49.10 PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE 49.11 CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE. 49.12 Each payday, you must retain the amount of earnings listed 49.13 in column G on the Earnings Disclosure Worksheet. 49.14 You must pay the attached earnings and return this earnings 49.15 disclosure form and the Earnings Disclosure Worksheet to 49.16 the creditor's attorney (or the creditor if not represented 49.17 by an attorney) and deliver a copy to the debtor within ten 49.18 days after the last payday that falls within the 70-day 49.19 period. If the claim is wholly satisfied or if the 49.20 debtor's employment ends before the expiration of the 49.21 70-day period, your disclosure should be made within ten 49.22 days after the last payday for which earnings were attached. 49.23 For steps 2 through 8, "columns" refers to columns on the 49.24 Earnings Disclosure Worksheet. 49.25 (2) COLUMN A. Enter the date of debtor's payday. 49.26 (3) COLUMN B. Enter debtor's gross earnings for each 49.27 payday. 49.28 (4) COLUMN C. Enter debtor's disposable earnings for each 49.29 payday. 49.30 (5) COLUMN D. Enter either 50, 55, 60, or 65 percent of 49.31 disposable earnings, based on which of the following 49.32 descriptions fits the child support judgment debtor: 49.33 (a) 50 percent of the judgment debtor's disposable income, 49.34 if the judgment debtor is supporting a spouse or dependent child 49.35 and the judgment is 12 weeks old or less (12 weeks to be 49.36 calculated to the beginning of the work week in which the 50.1 execution levy is received); 50.2 (b) 55 percent of the judgment debtor's disposable income, 50.3 if the judgment debtor is supporting a spouse or dependent 50.4 child, and the judgment is over 12 weeks old (12 weeks to be 50.5 calculated to the beginning of the work week in which the 50.6 execution levy is received); 50.7 (c) 60 percent of the judgment debtor's disposable income, 50.8 if the judgment debtor is not supporting a spouse or dependent 50.9 child and the judgment is 12 weeks old or less (12 weeks to be 50.10 calculated to the beginning of the work week in which the 50.11 execution levy is received); or 50.12 (d) 65 percent of the judgment debtor's disposable income, 50.13 if the judgment debtor is not supporting a spouse or dependent 50.14 child, and the judgment is over 12 weeks old (12 weeks to be 50.15 calculated to the beginning of the work week in which the 50.16 execution levy is received). (Multiply column C by .50, .55, 50.17 .60, or .65, as appropriate.) 50.18 (6) COLUMN E. Enter here any amount claimed by you as a 50.19 setoff, defense, lien, or claim, or any amount claimed by any 50.20 other person as an exemption or adverse interest that would 50.21 reduce the amount of earnings owing to the debtor. (Note: Any 50.22 assignment of earnings made by the debtor to any party within 50.23 ten days before the receipt of the first garnishment on a debt 50.24 is void. Any indebtedness to you incurred by the debtor within 50.25 the ten days before the receipt of the first garnishment on a 50.26 debt may not be set off against amounts otherwise subject to the 50.27 garnishment.) 50.28 You must also describe your claim(s) and the claims of 50.29 others, if known, in the space provided below the worksheet and 50.30 state the name(s) and address(es) of these persons. 50.31 Enter zero in column E if there are no claims by you or 50.32 others that would reduce the amount of earnings owing to the 50.33 judgment debtor. 50.34 (7) COLUMN F. Subtract the amount in column E from the 50.35 amount in column D and enter here. This is the amount of 50.36 earnings that you must remit for the payday for which the 51.1 calculations were made. 51.2 AFFIRMATION 51.3 I, ................... (person signing Affirmation), am the 51.4 garnishee or I am authorized by the garnishee to complete this 51.5 earnings disclosure, and have done so truthfully and to the best 51.6 of my knowledge. 51.7 Dated: ............ ............................ 51.8 Signature 51.9 ............................ 51.10 Title 51.11 ............................ 51.12 Telephone Number 51.13 EARNINGS DISCLOSURE WORKSHEET ................... 51.14 Debtor's Name 51.15 A B C 51.16 Payday Gross Disposable 51.17 Date Earnings Earnings 51.18 1. ........ $....... $......... 51.19 2. ........ ........ .......... 51.20 3. ........ ........ .......... 51.21 4. ........ ........ .......... 51.22 5. ........ ........ .......... 51.23 6. ........ ........ .......... 51.24 7. ........ ........ .......... 51.25 8. ........ ........ .......... 51.26 9. ........ ........ .......... 51.27 10. ........ ........ .......... 51.28 D E F 51.29 Either 50, 55, Setoff, Lien, Column D 51.30 60, or 65% of Adverse minus 51.31 Column C Interest, or Column E 51.32 Other Claims 51.33 1. ........ .......... .......... 51.34 2. ........ .......... .......... 51.35 3. ........ .......... .......... 51.36 4. ........ .......... .......... 52.1 5. ........ .......... .......... 52.2 6. ........ .......... .......... 52.3 7. ........ .......... .......... 52.4 8. ........ .......... .......... 52.5 9. ........ .......... .......... 52.6 10. ........ .......... .......... 52.7 TOTAL OF COLUMN F $............ 52.8 *If you entered any amount in column E for any payday(s), 52.9 you must describe below either your claims, or the claims of 52.10 others. For amounts claimed by others, you must both state the 52.11 names and addresses of such persons, and the nature of their 52.12 claim, if known. 52.13 52.14 ................................................................. 52.15 ................................................................. 52.16 ................................................................. 52.17 AFFIRMATION 52.18 I, ................. (person signing Affirmation), am the 52.19 third party or I am authorized by the third party to complete 52.20 this earnings disclosure worksheet, and have done so truthfully 52.21 and to the best of my knowledge. 52.22 ................. 52.23 Signature 52.24 Dated: ........ ............... (...)............ 52.25 Title Phone Number 52.26 NONEARNINGS DISCLOSURE FORM 52.27 52.28 STATE OF MINNESOTA DISTRICT COURT 52.29 COUNTY OF ............ ...... JUDICIAL DISTRICT 52.30 ...................(Creditor) 52.31 against 52.32 ...................(Debtor) NONEARNINGS DISCLOSURE 52.33 and 52.34 ...................(Garnishee) 52.35 On the .... day of ........., ......., the time of service 52.36 of garnishment summons herein, there was due and owing the 53.1 debtor from the garnishee the following: 53.2 (1) Money. Enter on the line below any amounts due and 53.3 owing the debtor, except earnings, from the garnishee. 53.4 ....................................................... 53.5 (2) Property. Describe on the line below any personal 53.6 property, instruments, or papers belonging to the debtor and in 53.7 the possession of the garnishee. 53.8 ....................................................... 53.9 (3) Setoff. Enter on the line below the amount of any 53.10 setoff, defense, lien, or claim which the garnishee claims 53.11 against the amount set forth on lines (1) and (2) above. State 53.12 the facts by which the setoff, defense, lien, or claim is 53.13 claimed. (Any indebtedness to a garnishee incurred by the 53.14 debtor within the ten days before the receipt of the first 53.15 garnishment on a debt may not be set off against amounts 53.16 otherwise subject to the garnishment.) 53.17 ....................................................... 53.18 (4) Exemption. Enter on the line below any amounts or 53.19 property claimed by the debtor to be exempt from execution. 53.20 ........................................................ 53.21 (5) Adverse Interest. Enter on the line below any amounts 53.22 claimed by other persons by reason of ownership or interest in 53.23 the debtor's property. 53.24 ....................................................... 53.25 (6) Enter on the line below the total of lines (3), (4), 53.26 and (5). 53.27 ....................................................... 53.28 (7) Enter on the line below the difference obtained (never 53.29 less than zero) when line (6) is subtracted from the sum of 53.30 lines (1) and (2). 53.31 ........................................................ 53.32 (8) Enter on the line below 110 percent of the amount of 53.33 the creditor's claim which remains unpaid. 53.34 ....................................................... 53.35 (9) Enter on the line below the lesser of line (7) and line 53.36 (8). Retain this amount only if it is $10 or more. 54.1 ....................................................... 54.2 AFFIRMATION 54.3 I, ..................... (person signing Affirmation), am 54.4 the garnishee or I am authorized by the garnishee to complete 54.5 this nonearnings garnishment disclosure, and have done so 54.6 truthfully and to the best of my knowledge. 54.7 Dated: ............ ............................. 54.8 Signature 54.9 ............................. 54.10 Title 54.11 ............................. 54.12 Telephone Number 54.13 Sec. 20. Minnesota Statutes 1998, section 571.82, 54.14 subdivision 1, is amended to read: 54.15 Subdivision 1. [JUDGMENT UPON FAILURE TO DISCLOSE.] If a 54.16 garnishee fails to serve a disclosure as required in this 54.17 chapter, the court may render judgment against the garnishee, 54.18 upon motion by the creditor, for an amount not exceedingthe54.19creditor's claim against the debtor or110 percent of the amount 54.20 claimed in the garnishment summons, whichever is less. The 54.21 motion shall be supported by an affidavit of the facts and shall 54.22 be served upon both the debtor and the garnishee. The court 54.23 upon good cause shown may remove the default and permit the 54.24 garnishee to disclose on just terms. 54.25 Sec. 21. Minnesota Statutes 1998, section 571.912, is 54.26 amended to read: 54.27 571.912 [FORM OF EXEMPTION NOTICE.] 54.28 The notice informing a debtor that an order for attachment, 54.29 garnishment summons, or levy by execution has been used to 54.30 attach funds of the debtor to satisfy a claim must be 54.31 substantially in the following form: 54.32 STATE OF MINNESOTA DISTRICT COURT 54.33 COUNTY OF ................ ........JUDICIAL DISTRICT 54.34 ........................(Creditor) 54.35 ........................(Debtor) 54.36 TO: Debtor EXEMPTION NOTICE 55.1 An order for attachment, garnishment summons, or levy of 55.2 execution (strike inapplicable language) has been served on 55.3 ............ (bank or other financial institution) 55.4 ............... where you have an account. 55.5 Your account balance is $............. 55.6 The amount being held is $............ 55.7 However, all or a portion of the funds in your account will 55.8 normally be exempt from creditors' claims if they are in one of 55.9 the following categories: 55.10 (1) relief based on need. This includes: Aid to Families 55.11 with Dependent Children (AFDC), AFDC-Emergency Assistance 55.12 (AFDC-EA), Medical Assistance (MA), General Assistance (GA), 55.13 General Assistance Medical Care (GAMC), Emergency General 55.14 Assistance (EGA), Work Readiness, Minnesota Supplemental Aid 55.15 (MSA), MSA Emergency Assistance (MSA-EA), Supplemental Security 55.16 Income (SSI), and Energy Assistance; 55.17 (2) Social Security benefits (Old Age, Survivors, or 55.18 Disability Insurance); 55.19 (3) reemployment insurance, workers' compensation, or 55.20 veterans' benefits; 55.21 (4) an accident, disability, or retirement pension or 55.22 annuity; 55.23 (5) life insurance proceeds; 55.24 (6) the earnings of your minor child and any child support 55.25 paid to you; or 55.26 (7) money from a claim for damage or destruction of exempt 55.27 property (such as household goods, farm tools, business 55.28 equipment, a mobile home, or a car). 55.29 The following funds are also exempt: 55.30 (8) all earnings of a person in category (1); 55.31 (9) all earnings of a person who has received relief based 55.32 on need, or who has been an inmate of a correctional 55.33 institution, within the last six months; 55.34 (10) 75 percent of every debtor's after tax earnings; and 55.35 (11) all of a debtor's after tax earnings below 40 times 55.36 the federal minimum wage. 56.1 TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 56.2 Categories (10) and (11): 20 days 56.3 Categories (8) and (9): 60 days 56.4 All others: no time limit, as long as funds are traceable 56.5 to the exempt source. (In tracing funds, the first-in, 56.6 first-out method is used. This means money deposited first is 56.7 spent first.) The money being sought by the creditor is being 56.8 held in your account to give you a chance to claim an exemption. 56.9 TO CLAIM AN EXEMPTION: 56.10 Fill out, sign, and mail or deliver one copy of the 56.11 attached exemption claim form to the institution which sent you 56.12 this notice and mail or deliver one copy to the creditor's 56.13 attorney. In the event that there is no attorney for the 56.14 creditor, then such notice shall be sent directly to the 56.15 creditor. The address for the creditor's attorney or the 56.16 creditor is set forth below. Both copies must be mailed or 56.17 delivered on the same day. 56.18 NOTE: You may help resolve your claim faster if you send 56.19 to the creditor's attorney written proof or documents that 56.20 show why your money is exempt. If you have questions 56.21 regarding the documents to send as proof of an exemption, 56.22 call the creditor's attorney. If you do not send written 56.23 proof and the creditor's attorney has questions about your 56.24 exemption claim, the creditor's attorney may object to your 56.25 claim which may result in a further delay in releasing your 56.26 exempt funds. 56.27 If they do not get the exemption claim back from you within 56.28 14 days of the date they mailed or gave it to you, they will be 56.29 free to turn the money over to the sheriff or the creditor. If 56.30 you are going to claim an exemption, do so as soon as possible, 56.31 because your money may be held until it is decided. 56.32 IF YOU CLAIM AN EXEMPTION: 56.33 (1) nonexempt money can be turned over to the creditor or 56.34 sheriff; 56.35 (2) the financial institution will keep holding the money 56.36 claimed to be exempt; and 57.1 (3) seven days after receiving your exemption claim, the 57.2 financial institution will release the money to you unless 57.3 before then it receives an objection to your exemption claim. 57.4 IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 57.5 The institution will hold the money until a court decides 57.6 if your exemption claim is valid, BUT ONLY IF the institution 57.7 gets a copy of your court motion papers asserting the exemption 57.8 WITHIN TEN DAYS after the objection is personally served on you, 57.9 or within 13 days from the date the objection is mailedor given57.10 to you. You may wish to consult an attorney at once if the 57.11 creditor objects to your exemption claim. 57.12 MOTION TO DETERMINE EXEMPTION: 57.13 At any time after your funds have been held, you may ask 57.14 for a court decision on the validity of your exemption claim by 57.15 filing a request for hearing which may be obtained at the office 57.16 of the court administrator of the above court. 57.17 PENALTIES: 57.18 If you claim an exemption in bad faith, or if the creditor 57.19 wrongly objects to an exemption in bad faith, the court may 57.20 order the person who acted in bad faith to pay costs, actual 57.21 damages, attorney fees, and an additional amount of up to $100. 57.22 ............................. 57.23 ............................. 57.24 ............................. 57.25 ............................. 57.26 Name and address of (Attorney 57.27 for) Judgment Creditor 57.28 EXEMPTION: 57.29 (If you claim an exemption complete the following): 57.30 (a) Amount of exemption claim. 57.31 / / I claim ALL the funds being held are exempt. 57.32 / / I claim SOME of the funds being held are exempt. 57.33 The exempt amount is $............ 57.34 (b) Basis for exemption. 57.35 Of the eleven categories listed above, I am in category 57.36 number ............ (If more than one category applies, you may 58.1 fill in as many as apply.) The source of the exempt funds is 58.2 the following: 58.3 ............................................................. 58.4 ............................................................. 58.5 ............................................................. 58.6 (If the source is a type of relief based on need, list the 58.7 case number and county: 58.8 case number: ...............; 58.9 county: ....................) 58.10 I hereby authorize any agency that has distributed relief 58.11 to me or any correctional institution in which I was an inmate 58.12 to disclose to the above named creditor or its attorney only 58.13 whether or not I am or have been a recipient of relief based on 58.14 need or an inmate of a correctional institute within the last 58.15 six months. 58.16 I HAVE MAILED OR DELIVERED A COPY OF THE EXEMPTION NOTICE 58.17 TO THE CREDITOR'S ATTORNEY AT THE ADDRESS INDICATED ABOVE. 58.18 DATED: ............. ............................. 58.19 DEBTOR 58.20 ............................. 58.21 DEBTOR ADDRESS 58.22 ............................. 58.23 DEBTOR PHONE NUMBER 58.24 Sec. 22. Minnesota Statutes 1998, section 571.914, 58.25 subdivision 2, is amended to read: 58.26 Subd. 2. [NOTICE OF OBJECTION.] (a) The written objection 58.27 to the debtor must be in substantially the following form: 58.28 STATE OF MINNESOTA DISTRICT COURT 58.29 COUNTY OF .................... ..........JUDICIAL DISTRICT 58.30 ....................(Creditor) 58.31 ....................(Debtor) CREDITOR'S OBJECTION 58.32 ....................(Garnishee) TO EXEMPTION CLAIM 58.33 The creditor objects to your claim for exemption from 58.34 garnishment, levy of execution, order for attachment (strike 58.35 inapplicable language) for the following reason(s): 58.36 ................................................................. 59.1 ................................................................. 59.2 ................................................................. 59.3 Because of this objection, your financial institution will 59.4 retain the funds you claimed to be exempt for an additional ten 59.5 days. If you wish to request a hearing on your exemption claim, 59.6 youshouldneed to do so within ten daysof your receipt of this59.7 from the date the objection was personally served on you, or 59.8 within 13 days of the date the objection was mailed to you. You 59.9 may request a hearing by completing the attached form and filing 59.10 it with the court administrator. 59.11 1. The court shall provide clerical assistance to help 59.12 with the writing and filing of a Request for Hearing by any 59.13 person not represented by counsel. The court administrator may 59.14 charge a fee of $1 for the filing of a Request for Hearing. 59.15 2. Upon the filing of a Request for Hearing, the clerk 59.16 shall schedule the matter for a hearing no later than five 59.17 business days from the date of filing. The court administrator 59.18 shall forthwith send a completed copy of the request, including 59.19 the hearing date, time, and place to the adverse party and to 59.20 the financial institution by first class mail. 59.21 3. If it is possible that the financial institution might 59.22 not receive the request mailed from the court administrator 59.23 within ten days, then you may want to personally deliver a copy 59.24 of the request to the financial institution after you have filed 59.25 your request with the court. 59.26 4. An order stating whether your funds are exempt shall be 59.27 issued by the court within three days of the date of the hearing. 59.28 If you do not file a Request for Hearing within ten days of 59.29 the dateyou receive this objectionthe objection was personally 59.30 served on you, or within 13 days from the date the objection was 59.31 mailed to you, your financial institution may turn your funds 59.32 over to your creditor. 59.33 If you file a Request for Hearing and your financial 59.34 institution receives it within ten days of the date it received 59.35 this objection, your financial institution will retain your 59.36 funds claimed to be exempt until otherwise ordered by the court, 60.1 or until the garnishment lapses pursuant to Minnesota Statutes, 60.2 section 571.79. 60.3 .................................. 60.4 (CREDITOR OR CREDITOR'S ATTORNEY.) 60.5 Sec. 23. Minnesota Statutes 1998, section 571.921, is 60.6 amended to read: 60.7 571.921 [DEFINITIONS.] 60.8 For purposes of sections 571.921 to 571.926, the following 60.9 terms have the meanings given them: 60.10 (a) "Earnings" means: 60.11 (1) compensation paid or payable to an employee for 60.12 personal service whether denominated as wages, salary, 60.13 commissions, bonus, or otherwise, and includes periodic payments 60.14 pursuant to a pension or retirement program; 60.15 (2) compensation paid or payable to the producer for the 60.16 sale of agricultural products; livestock or livestock products; 60.17 milk or milk products; or fruit or other horticultural products 60.18 produced when the producer is operating a family farm, a family 60.19 farm corporation, or an authorized farm corporation, as defined 60.20 in section 500.24, subdivision 2; or 60.21 (3) maintenance as defined in section 518.54, subdivision 60.22 3; 60.23 (b) "Disposable earnings" means that part of the earnings 60.24 of an individual remaining after the deduction from those 60.25 earnings of amounts required by law to be withheld, including 60.26 amounts required by court order to be withheld for child support 60.27 obligations. 60.28 (c) "Employee" means an individual who performs services 60.29 subject to the right of the employer to control both what is 60.30 done and how it is done. 60.31 (d) "Employer" means a person for whom an individual 60.32 performs services as an employee. 60.33 Sec. 24. Minnesota Statutes 1998, section 571.925, is 60.34 amended to read: 60.35 571.925 [FORM OF NOTICE.] 60.36 The ten-day notice informing a debtor that a garnishment 61.1 summons may be used to garnish the earnings of an individual 61.2 must be substantially in the following form: 61.3 STATE OF MINNESOTA DISTRICT COURT 61.4 COUNTY OF ............. ........... JUDICIAL DISTRICT 61.5 ....................(Creditor) 61.6 against 61.7 GARNISHMENT EXEMPTION 61.8 ....................(Debtor) NOTICE AND NOTICE OF 61.9 and INTENT TO GARNISH EARNINGS 61.10WITHIN TEN DAYS61.11 ....................(Garnishee) 61.12 PLEASE TAKE NOTICE that a garnishment summons or levy may 61.13 be served upon your employer or other third parties, without any 61.14 further court proceedings or notice to you, ten days or more 61.15 from the date hereof. Some or all of your earnings are exempt 61.16 from garnishment. If your earnings are garnished, your employer 61.17 must show you how the amount that is garnished from your 61.18 earnings was calculated. You have the right to request a 61.19 hearing if you claim the garnishment is incorrect. 61.20 Your earnings are completely exempt from garnishment if you 61.21 are now a recipient of relief based on need, if you have been a 61.22 recipient of relief within the last six months, or if you have 61.23 been an inmate of a correctional institution in the last six 61.24 months. 61.25 Relief based on need includes Aid to Families with 61.26 Dependent Children (AFDC), AFDC-Emergency Assistance (AFDC-EA), 61.27 Medical Assistance (MA), General Assistance (GA), General 61.28 Assistance Medical Care (GAMC), Emergency General Assistance 61.29 (EGA), Work Readiness, Minnesota Supplemental Aid (MSA), MSA 61.30 Emergency Assistance (MSA-EA), Supplemental Security Income 61.31 (SSI), and Energy Assistance. 61.32 If you wish to claim an exemption, you should fill out the 61.33 appropriate form below, sign it, and send it to the creditor's 61.34 attorney and the garnishee. 61.35 You may wish to contact the attorney for the creditor in 61.36 order to arrange for a settlement of the debt or contact an 62.1 attorney to advise you about exemptions or other rights. 62.2 PENALTIES 62.3 (1) Be advised that even if you claim an exemption, a 62.4 garnishment summons may still be served on your employer. 62.5 If your earnings are garnished after you claim an 62.6 exemption, you may petition the court for a determination 62.7 of your exemption. If the court finds that the creditor 62.8 disregarded your claim of exemption in bad faith, you will 62.9 be entitled to costs, reasonable attorney fees, actual 62.10 damages, and an amount not to exceed $100. 62.11 (2) HOWEVER, BE WARNED if you claim an exemption, the 62.12 creditor can also petition the court for a determination of 62.13 your exemption, and if the court finds that you claimed an 62.14 exemption in bad faith, you will be assessed costs and 62.15 reasonable attorney's fees plus an amount not to exceed 62.16 $100. 62.17 (3) If after receipt of this notice, you in bad faith take 62.18 action to frustrate the garnishment, thus requiring the 62.19 creditor to petition the court to resolve the problem, you 62.20 will be liable to the creditor for costs and reasonable 62.21 attorney's fees plus an amount not to exceed $100. 62.22 DATED: ............ ........................ 62.23 (Attorney for) Creditor 62.24 ........................ 62.25 Address 62.26 ........................ 62.27 Telephone 62.28 DEBTOR'S EXEMPTION CLAIM NOTICE 62.29 I hereby claim that my earnings are exempt from garnishment 62.30 because: 62.31 (1) I am presently a recipient of relief based on need. 62.32 (Specify the program, case number, and the county from 62.33 which relief is being received.) 62.34 ................ ...................... ............... 62.35 Program Case Number (if known) County 62.36 (2) I am not now receiving relief based on need, but I have 63.1 received relief based on need within the last six months. 63.2 (Specify the program, case number, and the county from 63.3 which relief has been received.) 63.4 ................ ...................... ............... 63.5 Program Case Number (if known) County 63.6 (3) I have been an inmate of a correctional institution 63.7 within the last six months. (Specify the correctional 63.8 institution and location.) 63.9 ........................... .......................... 63.10 Correctional Institution Location 63.11 I hereby authorize any agency that has distributed relief 63.12 to me or any correctional institution in which I was an inmate 63.13 to disclose to the above-named creditor or the creditor's 63.14 attorney only whether or not I am or have been a recipient of 63.15 relief based on need or an inmate of a correctional institution 63.16 within the last six months. I have mailed or delivered a copy 63.17 of this form to the creditor or creditor's attorney. 63.18 ........................... ......................... 63.19 Date Debtor 63.20 ......................... 63.21 Address 63.22 ......................... 63.23 Debtor Phone Number