HF 334

1st Unofficial Engrossment - 86th Legislature (2009 - 2010)

Posted on 12/26/2012 11:27 p.m.

1.1A bill for an act 1.2relating to creditor remedies; modifying garnishment instructions, forms, 1.3procedures, and exemptions;amending Minnesota Statutes 2008, sections 1.4550.143; 550.37, subdivision 14; 551.05; 571.71; 571.72, by adding subdivisions; 1.5571.911; 571.912; 571.913; 571.914; 571.925. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2008, section 550.143, is amended to read: 1.8550.143 LEVY ON FUNDS AT A FINANCIAL INSTITUTION. 1.9    Subdivision 1. Procedure. When the sheriff is levying upon funds at a financial 1.10institution, this section must be complied with, in addition to the general provisions set 1.11forth in section 550.135. 1.12    Subd. 2. Disclosure form. Along with the writ of execution new text begin , the notice, instructions, new text end 1.13and the exemption notice described in subdivision 3, the sheriff shall serve upon the 1.14financial institution an execution disclosure form which must be substantially in the 1.15following form: 1.16 STATE OF MINNESOTA DISTRICT COURT 1.17 COUNTY OF ..... ..... JUDICIAL DISTRICT 1.18 ..... (Judgment Creditor) 1.19 against FINANCIAL INSTITUTIONS 1.20 ..... (Judgment Debtor) EXECUTION 1.21 and DISCLOSURE 1.22 ..... (Third Party) 1.23On the ..... day of ............., ......., the time of service of execution herein, there was 1.24due and owing the judgment debtor from the third party the following: 2.1(1) Money. Enter on the line below any amounts due and owing the judgment debtor, 2.2except earnings, from the third party. ..... 2.3 2.4(2) Setoff. Enter on the line below the amount of any setoff, defense, lien, or claim 2.5which the third party claims against the amount set forth on line (1). State the facts by 2.6which such setoff, defense, lien, or claim is claimed. (Any indebtedness to a third party 2.7incurred by the judgment debtor within ten days prior to the receipt of the first execution 2.8levy on a debt is void as to the judgment creditor.) ..... 2.9 2.10(3) Exemption. Enter on the line below any amounts or property claimed by the 2.11judgment debtor to be exempt from execution. ..... 2.12 2.13(4) Adverse Interest. Enter on the line below any amounts claimed by other persons 2.14by reason of ownership or interest in the judgment debtor's property. ..... 2.15 2.16(5) Enter on the line below the total of lines (2), (3), and (4). ..... 2.17 2.18(6) Enter on the line below the difference obtained (never less than zero) when line 2.19(5) is subtracted from the amount on line (1). ..... 2.20 2.21(7) Enter on the line below 110 percent of the amount of the judgment creditor's 2.22claim which remains unpaid. ..... 2.23 2.24(8) Enter on the line below the lesser of line (6) and line (7). You are hereby 2.25instructed to remit this amount only if it is $10 or more. ..... 2.26 2.27AFFIRMATION 2.28I, ....................... (person signing Affirmation), am the third party or I am authorized 2.29by the third party to complete this nonearnings disclosure, and have done so truthfully 2.30and to the best of my knowledge. 2.31 Dated: ..... ..... 2.32 Signature 2.33 ..... 2.34 Title 3.1 ..... 3.2 Telephone Number 3.3    Subd. 3. new text begin Notice, instructions, and new text end exemption notice. If the levy is on funds of a 3.4judgment debtor who is a natural person and if the funds to be levied are held on deposit at 3.5any financial institution, the judgment creditor or its attorney shall provide the sheriff with 3.6 new text begin a notice, instructions, and new text end two copies of an exemption notice, which must be substantially 3.7in the form set forth below. The sheriff shall serve new text begin the notice, instructions, and new text end both copies 3.8of the exemption notice on the financial institution, along with the writ of execution. 3.9Failure of the sheriff to serve new text begin the notice, instructions, and new text end the exemption notices renders 3.10the levy void, and the financial institution shall take no action. However, if this subdivision 3.11is being used to execute on funds that have previously been garnished in compliance with 3.12section 571.71, the judgment creditor is not required to serve additional exemption notices. 3.13In that event, the execution levy shall only be effective as to the funds that were subject 3.14to the prior garnishment. Upon receipt of the writ of execution new text begin , notice, instructions, new text end and 3.15exemption notices, the financial institution shall retain as much of the amount due under 3.16section 550.04 as the financial institution has on deposit owing to the judgment debtor, but 3.17not more than 110 percent of the amount remaining due on the judgment. 3.18 STATE OF MINNESOTA DISTRICT COURT 3.19 COUNTY OF ..... ..... JUDICIAL DISTRICT 3.20 3.21 ..... (Judgment Creditor) 3.22 ..... (Judgment Debtor) 3.23 TO: Debtor EXEMPTION NOTICE 3.24An order for attachment, garnishment summons, or levy of execution (strike 3.25inapplicable language) has been served on ............. (Bank or other financial institution 3.26where you have an account.) 3.27Your account balance is $........ 3.28The amount being held is $........ 3.29However, all or a portion of the funds in your account will normally be exempt from 3.30creditors' claims if they are in one of the following categories: 3.31(1) relief based on need. This includes the Minnesota Family Investment Program 3.32(MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA), 3.33General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General 3.34Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance 3.35(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance; 3.36(2) Social Security benefits (Old Age, Survivors, or Disability Insurance); 3.37(3) unemployment benefits, workers' compensation, or veterans' benefits; 4.1(4) an accident, disability, or retirement pension or annuity; 4.2(5) life insurance proceeds; 4.3(6) the earnings of your minor child and any child support paid to you; or 4.4(7) money from a claim for damage or destruction of exempt property (such as 4.5household goods, farm tools, business equipment, a mobile home, or a car). 4.6The following funds are also exempt: 4.7(8) all earnings of a person in category (1); 4.8(9) all earnings of a person who has received relief based on need, or who has been 4.9an inmate of a correctional institution, within the last six months; 4.10(10) 75 percent of every debtor's after tax earnings; and 4.11(11) all of a judgment debtor's after tax earnings below 40 times the federal 4.12minimum wage. 4.13TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 4.14Categories (10) and (11): 20 days 4.15Categories (8) and (9): 60 days 4.16All others: no time limit, as long as funds are traceable to the exempt source. (In 4.17tracing funds, the first-in, first-out method is used. This means money deposited first 4.18is spent first.) The money being sought by the judgment creditor is being held in your 4.19account to give you a chance to claim an exemption. 4.20TO CLAIM AN EXEMPTION: 4.21Fill out, sign, and mail or deliver one copy of the attached exemption claim form to 4.22the institution which sent you this notice and mail or deliver one copy to the judgment 4.23creditor's attorney. In the event that there is no attorney for the judgment creditor, then 4.24the notice shall be sent directly to the judgment creditor. The address for the judgment 4.25creditor's attorney or the judgment creditor is set forth below. Both copies must be 4.26mailed or delivered on the same day. 4.27NOTE: You may help resolve your claim faster if you send to the creditor's 4.28attorney written proof or documents that show why your money is exempt. If 4.29you have questions regarding the documents to send as proof of an exemption, 4.30call the creditor's attorney. If you do not send written proof and the creditor's 4.31attorney has questions about your exemption claim, the creditor's attorney 4.32may object to your claim which may result in a further delay in releasing your 4.33exempt funds. 4.34If the financial institution does not get the exemption claim back from you within 14 4.35days of the date they mailed or gave it to you, they will be free to turn the money over to 5.1the sheriff or the judgment creditor. If you are going to claim an exemption, do so as soon 5.2as possible, because your money may be held until it is decided. 5.3IF YOU CLAIM AN EXEMPTION: 5.4(1) nonexempt money can be turned over to the judgment creditor or sheriff; 5.5(2) the financial institution will keep holding the money claimed to be exempt; and 5.6(3) seven days after receiving your exemption claim, the financial institution will 5.7release the money to you unless before then it receives an objection to your exemption 5.8claim. 5.9IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 5.10the institution will hold the money until a court decides if your exemption claim is 5.11valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting 5.12the exemption WITHIN TEN DAYS after the objection is personally served on you, or 5.13within 13 days from the date the objection is mailed to you. You may wish to consult an 5.14attorney at once if the creditor objects to your exemption claim. 5.15MOTION TO DETERMINE EXEMPTION: 5.16At any time after your funds have been held, you may ask for a court decision on the 5.17validity of your exemption claim by filing a request for hearing which may be obtained 5.18at the office of the court administrator of the above court. 5.19PENALTIES: 5.20If you claim an exemption in bad faith, or if the judgment creditor wrongly objects 5.21to an exemption in bad faith, the court may order the person who acted in bad faith to pay 5.22costs, actual damages, attorney fees, and an additional amount of up to $100. 5.23 ..... 5.24 ..... 5.25 ..... 5.26 ..... 5.27 5.28 Name and address of (Attorney for) Judgment Creditor 5.29EXEMPTION: 5.30(a) Amount of exemption claim. 5.31/ / I claim ALL the funds being held are exempt. 5.32/ / I claim SOME of the funds being held are exempt. 5.33 The exempt amount is $ ..... 5.34(b) Basis for exemption. 5.35Of the 11 categories listed above, I am in category number ............ (If more than one 5.36category applies, you may fill in as many as apply.) The source of the exempt funds is 5.37the following: 6.1 ..... 6.2 ..... 6.3 ..... 6.4(If the source is a type of relief based on need, list the case number and county: 6.5case number: ...............; 6.6county: ....................) 6.7I hereby authorize any agency that has distributed relief to me or any correctional 6.8institution in which I was an inmate to disclose to the above named creditor or its attorney 6.9only whether or not I am or have been a recipient of relief based on need or an inmate of a 6.10correctional institute within the last six months. 6.11I have mailed or delivered a copy of the exemption notice to the judgment creditor 6.12or judgment creditor's attorney if represented at the address indicated above. 6.13 ..... 6.14 DEBTOR 6.15 DATED: ..... ..... 6.16 ..... 6.17 ..... 6.18 DEBTOR ADDRESS 6.19 ..... 6.20 DEBTOR TELEPHONE NUMBER 6.21     new text begin Subd. 3a. new text end new text begin Form of notice. new text end new text begin The notice required by subdivision 3 must be provided as new text end 6.22 new text begin a separate form and must be substantially in the following form: new text end 6.23 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 6.24 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 6.25 ..... new text begin (Creditor) new text end 6.26 ..... new text begin (Debtor) new text end 6.27 6.28 ..... new text begin (Financial new text end new text begin institution) new text end 6.29 new text begin IMPORTANT NOTICE new text end 6.30 new text begin YOUR FUNDS HAVE BEEN LEVIED new text end 6.31 new text begin The Creditor has frozen money in your account at your financial institution. new text end 6.32 new text begin Your account balance is $....... new text end 6.33 new text begin The amount being held is $....... new text end 6.34 new text begin The amount being held will be frozen for 14 days from the date of this notice. new text end 6.35 new text begin Some of your money in your account may be protected (the legal word is new text end 6.36 new text begin exempt). You may be able to get it sooner than 14 days if you act quickly and follow new text end 6.37 new text begin the instructions on the next page. new text end 7.1 new text begin The attached exemption form lists some different sources of money in your account new text end 7.2 new text begin that may be protected. If your money is from one or more of these sources, place a new text end 7.3 new text begin check on the line on the form next to the sources of your money. If it is from one of new text end 7.4 new text begin these sources, the Creditor cannot take it. new text end 7.5 new text begin BUT, new text end new text begin you must follow the instructions and return the exemption form and new text end 7.6 new text begin copies of your bank statements from the last 60 days new text end new text begin to have the bank unfreeze your new text end 7.7 new text begin money. If you do not follow the instructions, your financial institution will give the money new text end 7.8 new text begin to the Sheriff. If that happens and it is protected, you can still get it back from the Creditor new text end 7.9 new text begin later, but that is not as easy to do as filling in the form now. new text end 7.10 new text begin See next pages for instructions and the exemption form. new text end 7.11     new text begin Subd. 3b. new text end new text begin Form of instructions. new text end new text begin The instructions required by this section must be new text end 7.12 new text begin in a separate form and must be substantially in the following form: new text end 7.13 new text begin INSTRUCTIONS new text end 7.14 new text begin Note: new text end new text begin The creditor is who you owe the money to. You are the debtor. new text end 7.15 new text begin 1. Fill out both of the attached exemption forms in this packet. new text end 7.16 new text begin If you check one of the lines, you should also give proof that shows that some new text end 7.17 new text begin or all of the money in your account is from one or more of the protected sources. new text end 7.18 new text begin Creditors may ask for a hearing if they question your exemptions. To avoid a hearing: new text end 7.19 new text begin Case numbers should be added to the form. Copies of documents should be new text end 7.20 new text begin sent with the form. new text end 7.21 new text begin NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO new text end 7.22 new text begin THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS new text end 7.23 new text begin FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank new text end 7.24 new text begin statements in case there are questions about your claim. If you do not send to the new text end 7.25 new text begin creditor's attorney (or to the creditor, if no attorney) bank statements with your new text end 7.26 new text begin exemption claim, the financial institution may release your money to the sheriff. new text end 7.27 new text begin 2. new text end new text begin Sign new text end new text begin the exemption forms. new text end new text begin Make one copy to keep for yourself. new text end 7.28 new text begin 3. new text end new text begin Mail or deliver new text end new text begin the other copies of the form by (insert date). new text end 7.29 new text begin BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY. new text end 7.30 new text begin One copy of the form and the copies of your bank statements go to: new text end 7.31 ..... 7.32 new text begin (Insert name of creditor or creditor's attorney) new text end 7.33 ..... 7.34 new text begin (Insert address of creditor or creditor's attorney) new text end 7.35 new text begin One copy goes to: new text end 8.1 ..... 8.2 new text begin (Insert name of bank) new text end 8.3 ..... 8.4 new text begin (Insert address of bank) new text end 8.5 new text begin HOW THE PROCESS WORKS new text end 8.6 new text begin If You Do Not Send in the Exemption Form and Bank Statements: new text end 8.7 new text begin 14 days after the date of this letter some or all of your money may be turned over new text end 8.8 new text begin to the creditor or to the sheriff. new text end 8.9 new text begin If You Send in the Exemption Form and Bank Statements: new text end 8.10 new text begin Any money that is NOT protected can be turned over to the sheriff. new text end 8.11 new text begin If the Creditor Does Not Object: new text end 8.12 new text begin The financial institution will unfreeze your money six business days after the new text end 8.13 new text begin institution gets your completed form. new text end 8.14 new text begin If the Creditor Objects: new text end 8.15 new text begin The money you have said is protected on the form will be held by the bank. The new text end 8.16 new text begin creditor has six business days to object (disagree) and ask the court to hold a hearing. You new text end 8.17 new text begin will receive a Notice of Objection and a Notice of Hearing. new text end 8.18 new text begin The financial institution will hold the money until a court decides whether your new text end 8.19 new text begin money is protected or not. Some reasons a creditor may object are because you did not new text end 8.20 new text begin send copies of your bank statements or other proof of the benefits you received. Be sure to new text end 8.21 new text begin include these when you send your exemption form. new text end 8.22 new text begin You may want to talk to a lawyer for advice about this process. If you are low new text end 8.23 new text begin income you can call Legal Aid. new text end 8.24 new text begin PENALTIES: new text end 8.25 new text begin If you claim that your money is protected and a court decides you made that claim new text end 8.26 new text begin in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an new text end 8.27 new text begin additional amount of up to $100. For example, it may be bad faith if you claim you receive new text end 8.28 new text begin government benefits that you do not receive. new text end 8.29 new text begin If the creditor made a bad faith objection to your claim that your money is protected, new text end 8.30 new text begin the court can order them to pay costs, actual damages, attorney fees, and an additional new text end 8.31 new text begin amount of up to $100. new text end 8.32     new text begin Subd. 3c. new text end new text begin Form of exemption form. new text end new text begin The exemption form required by this new text end 8.33 new text begin subdivision must be sent as a separate form and must be in substantially the following new text end 8.34 new text begin form: new text end 8.35 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 8.36 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 9.1 ..... new text begin (Creditor) new text end 9.2 ..... new text begin (Debtor) new text end 9.3 9.4 ..... new text begin (Financial new text end new text begin institution) new text end 9.5 new text begin EXEMPTION FORM new text end 9.6 new text begin A. new text end new text begin HOW MUCH MONEY IS PROTECTED new text end 9.7 ..... new text begin I claim ALL of the money being frozen by the bank is protected. new text end 9.8 ..... new text begin I claim SOME of the money is protected. The amount I claim is protected is $....... new text end 9.9 new text begin B. new text end new text begin WHY THE MONEY IS PROTECTED new text end 9.10 9.11 new text begin My money is protected because I get it from one or more of the following places: new text end new text begin (Check all that apply) new text end 9.12 ..... new text begin Government benefits new text end 9.13 new text begin Government benefits include, but are not limited to, the following: new text end 9.14 new text begin MFIP new text end new text begin - Minnesota family investment program, new text end 9.15 new text begin MFIP Diversionary Work Program, new text end 9.16 new text begin Work participation cash benefit, new text end new text begin new text end 9.17 new text begin GA new text end new text begin - general assistance, new text end 9.18 new text begin EA new text end new text begin - emergency assistance, new text end 9.19 new text begin MA new text end new text begin - medical assistance, new text end 9.20 new text begin GAMC new text end new text begin - general assistance medical care, new text end 9.21 new text begin EGA new text end new text begin - emergency general assistance, new text end 9.22 new text begin MSA new text end new text begin - Minnesota supplemental aid, new text end 9.23 new text begin MSA-EA new text end new text begin - MSA emergency assistance, new text end 9.24 new text begin Food Support, new text end 9.25 new text begin SSI - Supplemental Security Income, new text end 9.26 new text begin MinnesotaCare, new text end 9.27 new text begin Medicare part B premium payments, new text end 9.28 new text begin Medicare part D extra help, new text end 9.29 new text begin Energy or fuel assistance. new text end 9.30 new text begin LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end 9.31 ..... 9.32 new text begin LIST THE CASE NUMBER AND COUNTY new text end 9.33 new text begin Case Number: new text end ..... 9.34 new text begin County: new text end ..... 9.35 new text begin Government benefits also include: new text end 9.36 ..... new text begin Social Security benefits new text end 9.37 ..... new text begin Unemployment benefits new text end 9.38 ..... new text begin Workers' compensation new text end 9.39 ..... new text begin Veterans benefits new text end 9.40 9.41 9.42 new text begin If you receive any of these government benefits, include copies of any new text end new text begin documents you have that show you receive Social Security, unemployment, new text end new text begin workers' compensation, or veterans benefits. new text end 9.43 ..... new text begin Other assistance based on need new text end 10.1 new text begin You may have assistance based on need from another source that is not on the list. If you new text end 10.2 new text begin do, check this box, and fill in the source of your money on the line below: new text end 10.3 new text begin Source: new text end ..... 10.4 new text begin Include copies of any documents you have that show the source of this money. new text end 10.5 new text begin EARNINGS new text end 10.6 new text begin ALL or SOME of your earnings (wages) may also be protected. new text end 10.7 ..... new text begin All of your earnings (wages) are protected if: new text end 10.8 ..... new text begin You get government benefits (see list of government benefits) new text end 10.9 ..... new text begin You currently receive other assistance based on need new text end 10.10 ..... new text begin You have received government benefits in the last six months new text end 10.11 ..... new text begin You were in jail or prison in the last six months new text end 10.12 10.13 10.14 10.15 new text begin If you check one of these lines, new text end new text begin your wages are only protected for 60 days after new text end new text begin they are deposited in your account so new text end new text begin you MUST send the creditor a copy of new text end new text begin BANK STATEMENTS new text end new text begin that show what was in your account new text end new text begin for the 60 days right new text end new text begin before the bank froze your money new text end new text begin . new text end 10.16 ..... new text begin Some of your earnings (wages) are protected. new text end 10.17 10.18 10.19 new text begin If all of your earnings are not exempt, then some of your earnings are still protected new text end new text begin for 20 days after they were deposited in your account. The amount protected is the new text end new text begin larger amount of: new text end 10.20 new text begin 75 percent of your wages (after taxes are taken out); or new text end 10.21 new text begin (insert the sum of the current federal minimum wage) multiplied by 40. new text end 10.22 new text begin OTHER EXEMPT FUNDS new text end 10.23 10.24 new text begin The money from the following are also completely protected after they are new text end new text begin deposited in your account. new text end 10.25 ..... new text begin An accident, disability, or retirement pension or annuity new text end 10.26 ..... new text begin Payments to you from a life insurance policy new text end 10.27 ..... new text begin Earnings of your child who is under 18 years of age new text end 10.28 ..... new text begin Child support new text end 10.29 10.30 10.31 10.32 ..... new text begin Money paid to you from a claim for damage or destruction of property new text end new text begin new text end new text begin Property includes household goods, farm tools or machinery, tools for your job, new text end new text begin business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, new text end new text begin clothes, furniture, or appliances. new text end 10.33 ..... new text begin Death benefits paid to you new text end 10.34 new text begin I give permission to any agency that has given me cash benefits to give information new text end 10.35 new text begin about my benefits to the above-named creditor, or its attorney. The information will new text end new text begin ONLY new text end new text begin new text end 10.36 new text begin concern whether I get benefits or not, or whether I have gotten them in the past six months. new text end 10.37 new text begin If I was an inmate in the last six months, I give my permission to the correctional new text end 10.38 new text begin institution to tell the above-named creditor that I was an inmate there. new text end 10.39 new text begin YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S new text end 10.40 new text begin ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK. new text end 10.41 new text begin REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR new text end 11.1 new text begin THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE new text end 11.2 new text begin INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY. new text end 11.3 new text begin I have mailed or delivered a copy of this form to: new text end 11.4 ..... 11.5 new text begin (Insert name of creditor or creditor's attorney) new text end 11.6 ..... 11.7 new text begin (Insert address of creditor or creditor's attorney) new text end 11.8 new text begin I have also mailed or delivered a copy of this exemption form to my bank at the new text end 11.9 new text begin address listed in the instructions. new text end 11.10 new text begin DATED: new text end ..... ..... 11.11 new text begin DEBTOR new text end 11.12 ..... 11.13 new text begin DEBTOR ADDRESS new text end 11.14 ..... 11.15 new text begin DEBTOR TELEPHONE NUMBER new text end 11.16    Subd. 4. Effect of exemption notice. Within two business days after receipt of the 11.17writ of execution and new text begin , notice, instructions, and two copies of the new text end exemption notices new text begin notice new text end , 11.18the financial institution shall serve upon the judgment debtor new text begin the notice, instructions, new text end 11.19 new text begin and new text end two copies of the exemption notice. The financial institution shall serve the notice 11.20 new text begin these forms new text end by first class mail to the last known address of the judgment debtor. If no 11.21claim of exemption is received by the financial institution within 14 days after the new text begin notice, new text end 11.22 new text begin instructions, and new text end exemption notices are mailed to the judgment debtor, the funds remain 11.23subject to the execution levy and shall be remitted to the sheriff within seven new text begin six business new text end 11.24days. If the judgment debtor elects to claim an exemption, the judgment debtor shall 11.25complete the exemption notice, sign it under penalty of perjury, and deliver one copy to 11.26the financial institution and one copy to the attorney for the judgment creditor within 11.2714 days of the date postmarked on the correspondence mailed to the debtor containing 11.28the exemption notices. new text begin The judgment debtor is also required to include copies of bank new text end 11.29 new text begin statements for the prior 60 days with the exemption notice delivered to the attorney for the new text end 11.30 new text begin judgment creditor. new text end In the event that there is no attorney for the judgment creditor, then the 11.31notice new text begin and bank statements new text end must be sent directly to the judgment creditor. Failure of the 11.32judgment debtor to deliver the executed exemption notice new text begin or copies of the required bank new text end 11.33 new text begin statements for the prior 60 days new text end does not constitute a waiver of any claimed right to an 11.34exemption. Upon timely receipt of a claim of exemption, funds not claimed to be exempt 11.35by the debtor remain subject to the execution levy. All money claimed to be exempt shall 11.36be released to the judgment debtor upon the expiration of seven new text begin six business new text end days after 11.37the date postmarked on the envelope containing the executed exemption notice mailed to 12.1the financial institution, or the date of personal delivery of the executed exemption notice 12.2to the financial institution, unless within that time the judgment creditor interposes an 12.3objection to the exemption. 12.4    Subd. 5. Objection to exemption claim new text begin and request for hearing new text end . new text begin (a) An new text end objection 12.5shall be interposed new text begin within six business days of receipt by the creditor of an exemption new text end 12.6 new text begin claim from the debtor, new text end by mailing or delivering one copy of the written objection new text begin Notice of new text end 12.7 new text begin Objection and Notice of Hearing new text end to the financial institution and one copy of the written 12.8objection new text begin Notice of Objection and Notice of Hearing new text end to the judgment debtor along with a 12.9copy of the judgment debtor's claimed exemption form. Both copies of an objection to an 12.10exemption claim shall be mailed or delivered on the same date. The financial institution 12.11may rely on the date of mailing or delivery of a notice to it in computing any time periods 12.12in this section. The written objection new text begin Notice of Objection and Notice of Hearing new text end must be 12.13substantially in the form specified in subdivision 7. 12.14 new text begin (b) The court administrator may charge a fee of $1 for the filing of a Notice of new text end 12.15 new text begin Objection and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of new text end 12.16 new text begin Hearing, the court administrator shall schedule the matter for hearing no sooner than five new text end 12.17 new text begin business days but no later than seven business days from the date of filing. A debtor may new text end 12.18 new text begin request continuance of the hearing by notifying the creditor and the court. The court shall new text end 12.19 new text begin schedule the continued hearing within seven days of the original hearing date. new text end 12.20 new text begin (c) An order stating whether the debtor's funds are exempt must be issued by the new text end 12.21 new text begin court within three days of the date of the hearing. new text end 12.22    Subd. 6. Duties of financial institution if objection is made to exemption claim. 12.23Upon receipt of a written objection new text begin Notice of Objection and Notice of Hearing new text end from 12.24the judgment creditor or its attorney within the specified seven-day new text begin six-day new text end period, the 12.25financial institution shall retain the funds claimed to be exempt. Unless the financial 12.26institution receives a request for hearing and notice of hearing from the judgment debtor 12.27asserting exemption rights within ten days after receipt of a written objection to the 12.28exemption, the funds remain subject to the execution levy as if no claim of exemption 12.29had been made and shall be remitted to the sheriff within seven days. If a request for 12.30hearing and notice of hearing to determine the validity of a claim of exemption is received 12.31by the financial institution within the period provided, it new text begin The financial institution new text end shall 12.32retain the funds claimed to be exempt until otherwise ordered by the court new text begin or upon mutual new text end 12.33 new text begin agreement of the parties new text end . 12.34    Subd. 7. new text begin Form of new text end Notice of Objection new text begin and Notice of Hearing new text end . (a) The written 12.35objection to the judgment debtor's claim of exemption new text begin Written Objection and Notice of new text end 12.36 new text begin Hearing new text end must be in substantially the following form: 13.1 STATE OF MINNESOTA DISTRICT COURT 13.2 COUNTY OF ..... ..... JUDICIAL DISTRICT 13.3 13.4 ..... (Judgment Creditor) OBJECTION TO 13.5 ..... (Judgment Debtor) EXEMPTION CLAIM 13.6 13.7 ..... (Garnishee) (Third Party) 13.8The judgment creditor objects to your claim for exemption from garnishment, 13.9levy of execution, order for attachment (strike inapplicable language) for the following 13.10reason(s): ..... ..... 13.11 ..... 13.12 13.13Because of this objection, your financial institution will retain the funds you claimed 13.14to be exempt for an additional ten days. If you wish to request a hearing on your exemption 13.15claim, you need to do so within ten days from the date the objection was personally served 13.16on you, or within 13 days of the date the objection was mailed to you. You may request a 13.17hearing by completing the attached form and filing it with the court administrator. 13.181. The court administrator's office shall provide clerical assistance to help with the 13.19writing and filing of a Request for Hearing by any person not represented by counsel. The 13.20court administrator may charge a fee of $1 for the filing of a Request for Hearing. 13.212. Upon the filing of a Request for Hearing, the court administrator shall schedule 13.22the matter for a hearing no later than five business days from the date of filing. The court 13.23administrator shall forthwith send a completed copy of the request, including the hearing 13.24date, time, and place to the adverse party and to the financial institution by first class mail. 13.253. If it is possible that the financial institution might not receive the request mailed 13.26from the court administrator within ten days, then you may want to personally deliver a 13.27copy of the request to the financial institution after you have filed your request with the 13.28court. 13.294. An order stating whether your funds are exempt shall be issued by the court 13.30within three days of the date of the hearing. 13.31If you do not file a Request for Hearing within ten days of the date the objection was 13.32personally served on you, or within 13 days from the date the objection was mailed to you, 13.33your financial institution may turn your funds over to your creditor. 13.34If you file a Request for Hearing and your financial institution receives it within ten 13.35days of the date it received this objection, your financial institution will retain your funds 13.36claimed to be exempt until otherwise ordered by the court. 14.1 ..... 14.2 Judgment Creditor or Attorney 14.3 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 14.4 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 14.5 ..... 14.6 new text begin (Creditor) new text end 14.7 14.8 14.9 14.10 new text begin CREDITOR'S NOTICE OF new text end new text begin OBJECTION AND NOTICE OF new text end new text begin HEARING ON EXEMPTION new text end new text begin CLAIM new text end 14.11 ..... 14.12 new text begin (Debtor) new text end 14.13 ..... 14.14 new text begin (Financial Institution) new text end 14.15 new text begin (DEBTOR) new text end 14.16 ..... 14.17 new text begin ADDRESS new text end 14.18 ..... 14.19 ..... 14.20 ..... 14.21 ..... 14.22 ..... 14.23 14.24 new text begin (CREDITOR OR CREDITOR'S new text end new text begin ATTORNEY) new text end 14.25 new text begin NOTICE OF HEARING new text end 14.26 14.27 14.28 new text begin The creditor objects to your exemption new text end new text begin claim. This hearing is to resolve your new text end new text begin exemption claim. new text end 14.29 new text begin Hearing Date: new text end ..... 14.30 new text begin Time: new text end ..... 14.31 new text begin Hearing Place: new text end ..... 14.32 new text begin The creditor objects to your claim of exemption from levy of execution for the new text end 14.33 new text begin following reason(s): new text end 14.34 ..... 14.35 ..... 14.36 ..... 14.37 new text begin (Note: Bring with you to the hearing all documents and materials supporting new text end 14.38 new text begin your exemption claim. new text end new text begin Failure to do so could delay the court's decision.) new text end 14.39 new text begin If the creditor receives all documents and materials supporting your exemption new text end 14.40 new text begin claim before the hearing date, the creditor may agree with your exemption claim and new text end 14.41 new text begin you might still be able to avoid a hearing. new text end 15.1 new text begin Because a court hearing will be held on your claim that your funds are protected, new text end 15.2 new text begin your financial institution will retain the funds until it receives an order from the court or new text end 15.3 new text begin upon mutual agreement between you and your creditor. new text end 15.4    Subd. 8. Request for hearing and notice for hearing. The request for hearing 15.5accompanying the objection notice must be in substantially the following form: 15.6 STATE OF MINNESOTA DISTRICT COURT 15.7 COUNTY OF ..... ..... JUDICIAL DISTRICT 15.8 15.9 ..... (Judgment Creditor) REQUEST FOR HEARING 15.10 ..... (Judgment Debtor) AND 15.11 ..... (Third Party) NOTICE FOR HEARING 15.12I hereby request a hearing to resolve the exemption claim which has been made 15.13in this case regarding funds in the account of ............. (Judgment Debtor) at the ......... 15.14(Financial Institution). 15.15    I believe the property being held is exempt because ..... 15.16     ..... 15.17 15.18 Dated: ..... 15.19 (JUDGMENT DEBTOR) 15.20 ..... 15.21 (ADDRESS) 15.22 ..... 15.23 (DEBTOR PHONE NUMBER) 15.24 ..... 15.25 HEARING DATE: ..... TIME: ..... 15.26 HEARING PLACE: ..... 15.27(Note to both parties: Bring with you to the hearing all documents and materials 15.28relevant to the exemption claim and objection. Failure to do so could delay the court's 15.29decision.) 15.30    Subd. 9. Release of funds. At any time during the procedure specified in this 15.31section, the judgment debtor or the judgment creditor may, by a writing dated after the 15.32service of the execution, direct the sheriff new text begin or the financial institution new text end to release the funds in 15.33question to the other party. Upon receipt of a release, the sheriff new text begin or the financial institution new text end 15.34shall release the funds as directed. 15.35    Subd. 10. Subsequent proceedings; bad faith claims. If in subsequent proceedings 15.36brought by the judgment debtor or the judgment creditor, the claim of exemption is not 15.37upheld, and the court finds that it was asserted in bad faith, the judgment creditor shall be 16.1awarded actual damages, costs, and reasonable attorney fees resulting from the additional 16.2proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and 16.3the court finds that the judgment creditor disregarded the claim of exemption in bad faith, 16.4the judgment debtor shall be awarded costs, reasonable attorney fees, actual damages, and 16.5an amount not to exceed $100. The underlying judgment must be modified to reflect 16.6assessment of damages, costs, and attorney fees. However, if the party in whose favor a 16.7penalty assessment is made is not actually indebted to the party's attorney for fees, the 16.8attorney's fee award shall be made directly to the attorney and, if not paid, an appropriate 16.9judgment in favor of the attorney shall be entered. Upon motion of any party in interest, 16.10on notice, the court shall determine the validity of any claim of exemption, and may make 16.11any order necessary to protect the rights of those interested. No financial institution is 16.12liable for damages for complying with this section. Both copies of an exemption claim 16.13or an objection to an exemption claim must be mailed or delivered on the same date. 16.14The financial institution may rely on the date of mailing or delivery of a notice to it in 16.15computing any time periods in this section. 16.16    Sec. 2. Minnesota Statutes 2008, section 550.37, subdivision 14, is amended to read: 16.17    Subd. 14. Public assistance. All relief new text begin government assistance new text end based on need, 16.18and the earnings or salary of a person who is a recipient of relief new text begin government assistance new text end 16.19based on need, shall be exempt from all claims of creditors including any contractual 16.20setoff or security interest asserted by a financial institution. For the purposes of this 16.21chapter, relief new text begin government assistance new text end based on need includes MFIP, work first, general 16.22assistance medical care, supplemental security income, medical assistance, Minnesota 16.23supplemental assistance, and general assistance new text begin but is not limited to Minnesota family new text end 16.24 new text begin investment program, general assistance medical care, Supplemental Security Income, new text end 16.25 new text begin medical assistance, MinnesotaCare, payment of Medicare part B premiums or receipt of new text end 16.26 new text begin part D extra help, MFIP diversionary work program, work participation cash benefit, new text end 16.27 new text begin Minnesota supplemental assistance, emergency Minnesota supplemental assistance, new text end 16.28 new text begin general assistance, emergency general assistance, emergency assistance or county crisis new text end 16.29 new text begin funds, energy or fuel assistance, and food support new text end . The salary or earnings of any debtor 16.30who is or has been an eligible recipient of relief new text begin government assistance new text end based on need, or 16.31an inmate of a correctional institution shall, upon the debtor's return to private employment 16.32or farming after having been an eligible recipient of relief new text begin government assistance new text end based on 16.33need, or an inmate of a correctional institution, be exempt from attachment, garnishment, 16.34or levy of execution for a period of six months after the debtor's return to employment or 16.35farming and after all public assistance for which eligibility existed has been terminated. 17.1The exemption provisions contained in this subdivision also apply for 60 days after deposit 17.2in any financial institution, whether in a single or joint account. In tracing the funds, the 17.3first-in first-out method of accounting shall be used. The burden of establishing that funds 17.4are exempt rests upon the debtor. Agencies distributing relief new text begin government assistance new text end and 17.5the correctional institutions shall, at the request of creditors, inform them whether or not 17.6any debtor has been an eligible recipient of relief new text begin government assistance new text end based on need, or 17.7an inmate of a correctional institution, within the preceding six months. 17.8    Sec. 3. Minnesota Statutes 2008, section 551.05, is amended to read: 17.9551.05 ATTORNEY'S SUMMARY EXECUTION UPON FUNDS AT A 17.10FINANCIAL INSTITUTION. 17.11    Subdivision 1. Procedure. When levying upon funds at a financial institution, 17.12this section must be complied with, in addition to the general provisions specified in 17.13section 551.04. 17.14    Subd. 1a. new text begin Notice, instructions, and new text end exemption notice. If the writ of execution is 17.15being used by the attorney to levy funds of a judgment debtor who is a natural person and 17.16if the funds to be levied are held on deposit at any financial institution, the attorney for the 17.17judgment creditor shall serve with the writ of execution new text begin a notice, instructions, and new text end two 17.18copies of an exemption notice. The notice new text begin , instructions, and exemption notice new text end must be 17.19substantially in the form set forth below. Failure of the attorney for the judgment creditor 17.20to send the exemption notice new text begin these forms new text end renders the execution levy void, and the financial 17.21institution shall take no action. However, if this subdivision is being used to execute on 17.22funds that have previously been garnished in compliance with section 571.71, the attorney 17.23for judgment creditor is not required to serve an additional exemption notice. In that event, 17.24the execution levy shall only be effective as to the funds that were subject to the prior 17.25garnishment. Upon receipt of the writ of execution and exemption notices, the financial 17.26institution shall retain as much of the amount due under section 550.04 as the financial 17.27institution has on deposit owing to the judgment debtor, but not more than 100 percent of 17.28the amount remaining due on the judgment, or $10,000, whichever is less. 17.29     new text begin Subd. 1b. new text end new text begin Form of notice. new text end The notice informing a judgment debtor that an 17.30execution levy has been used to attach funds of the judgment debtor to satisfy a claim 17.31 new text begin must be a separate form and new text end must be substantially in the following form: 17.32 STATE OF MINNESOTA DISTRICT COURT 17.33 County of ..... ..... JUDICIAL DISTRICT 17.34 17.35 ..... (Judgment Creditor) 18.1 ..... (Judgment Debtor) 18.2 TO: Judgment Debtor EXEMPTION NOTICE 18.3An order for attachment, garnishment summons, or levy of execution (strike 18.4inapplicable language) has been served on ............. (bank or other financial institution 18.5where you have an account). 18.6Your account balance is $........ 18.7The amount being held is $........ 18.8However, all or a portion of the funds in your account will normally be exempt from 18.9creditors' claims if they are in one of the following categories: 18.10(1) relief based on need. This includes the Minnesota Family Investment Program 18.11(MFIP), Work First Program, Medical Assistance (MA), General Assistance (GA), 18.12General Assistance Medical Care (GAMC), Emergency General Assistance (EGA), 18.13Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA), 18.14Supplemental Security Income (SSI), and Energy Assistance; 18.15(2) Social Security benefits (Old Age, Survivors, or Disability Insurance); 18.16(3) unemployment benefits, workers' compensation, or veterans' benefits; 18.17(4) an accident, disability, or retirement pension or annuity; 18.18(5) life insurance proceeds; 18.19(6) the earnings of your minor child and any child support paid to you; or 18.20(7) money from a claim for damage or destruction of exempt property (such as 18.21household goods, farm tools, business equipment, a mobile home, or a car). 18.22The following funds are also exempt: 18.23(8) all earnings of a person in category (1); 18.24(9) all earnings of a person who has received relief based on need, or who has been 18.25an inmate of a correctional institution, within the last six months; 18.26(10) 75 percent of every judgment debtor's after tax earnings; or 18.27(11) all of a judgment debtor's after tax earnings below 40 times the federal 18.28minimum wage. 18.29TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 18.30Categories (10) and (11): 20 days 18.31Categories (8) and (9): 60 days 18.32All others: no time limit, as long as funds are traceable to the exempt source. (In 18.33tracing funds, the first-in, first-out method is used. This means money deposited first 18.34is spent first.) The money being sought by the judgment creditor is being held in your 18.35account to give you a chance to claim an exemption. 18.36TO CLAIM AN EXEMPTION: 19.1Fill out, sign, and mail or deliver one copy of the attached exemption claim form to 19.2the institution which sent you this notice and mail or deliver one copy to the judgment 19.3creditor's attorney. The address for the judgment creditor's attorney is set forth below. 19.4Both copies must be mailed or delivered on the same day. 19.5NOTE: You may help resolve your claim faster if you send to the creditor's 19.6attorney written proof or documents that show why your money is exempt. If 19.7you have questions regarding the documents to send as proof of an exemption, 19.8call the creditor's attorney. If you do not send written proof and the creditor's 19.9attorney has questions about your exemption claim, the creditor's attorney 19.10may object to your claim which may result in a further delay in releasing your 19.11exempt funds. 19.12If they do not get the exemption claim back from you within 14 days of the date 19.13they mailed or gave it to you, they will be free to turn the money over to the attorney for 19.14the judgment creditor. If you are going to claim an exemption, do so as soon as possible, 19.15because your money may be held until it is decided. 19.16IF YOU CLAIM AN EXEMPTION: 19.17(1) nonexempt money can be turned over to the judgment creditor or sheriff; 19.18(2) the financial institution will keep holding the money claimed to be exempt; and 19.19(3) seven days after receiving your exemption claim, the financial institution will 19.20release the money to you unless before then it receives an objection to your exemption 19.21claim. 19.22IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 19.23the institution will hold the money until a court decides if your exemption claim is 19.24valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting the 19.25exemption WITHIN TEN DAYS after the objection is personally served on you, or within 19.2613 days from the date the objection is mailed to you. You may wish to consult an attorney 19.27at once if the judgment creditor objects to your exemption claim. 19.28MOTION TO DETERMINE EXEMPTION: 19.29At any time after your funds have been held, you may ask for a court decision on the 19.30validity of your exemption claim by filing a request for hearing which may be obtained 19.31at the office of the court administrator of the above court. 19.32PENALTIES: 19.33If you claim an exemption in bad faith, or if the judgment creditor wrongly objects 19.34to an exemption in bad faith, the court may order the person who acted in bad faith to pay 19.35costs, actual damages, attorney fees, and an additional amount of up to $100. 20.1 ..... 20.2 ..... 20.3 ..... 20.4 ..... 20.5 20.6 Name and address of (Attorney for) Judgment Creditor 20.7EXEMPTION: 20.8(a) Amount of exemption claim. 20.9/ / I claim ALL the funds being held are exempt. 20.10/ / I claim SOME of the funds being held are exempt. 20.11 The exempt amount is $ ..... 20.12(b) Basis for exemption. 20.13Of the 11 categories listed above, I am in category number ............ (If more than one 20.14category applies, you may fill in as many as apply.) The source of the exempt funds is 20.15the following: ..... 20.16 ..... 20.17 ..... 20.18 20.19(If the source is a type of relief based on need, list the case number and county: 20.20case number: ...............; 20.21county: ....................) 20.22I hereby authorize any agency that has distributed relief to me or any correctional 20.23institution in which I was an inmate to disclose to the above named judgment creditor's 20.24attorney only whether or not I am or have been a recipient of relief based on need or an 20.25inmate of a correctional institute within the last six months. 20.26I have mailed or delivered a copy of the exemption notice to the judgment creditor's 20.27attorney at the address indicated above. 20.28 ..... 20.29 DEBTOR 20.30 DATED: ..... ..... 20.31 ..... 20.32 ..... 20.33 DEBTOR ADDRESS 20.34 ..... 20.35 DEBTOR TELEPHONE NUMBER 20.36 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 20.37 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 21.1 ..... new text begin (Creditor) new text end 21.2 ..... new text begin (Debtor) new text end 21.3 21.4 ..... new text begin (Financial new text end new text begin institution) new text end 21.5 new text begin IMPORTANT NOTICE new text end 21.6 new text begin YOUR FUNDS HAVE BEEN LEVIED new text end 21.7 new text begin The Creditor has frozen money in your account at your financial institution. new text end 21.8 new text begin Your account balance is $....... new text end 21.9 new text begin The amount being held is $....... new text end 21.10 new text begin The amount being held will be frozen for 14 days from the date of this notice. new text end 21.11 new text begin Some of your money in your account may be protected (the legal word is new text end 21.12 new text begin exempt). You may be able to get it sooner than 14 days if you act quickly and follow new text end 21.13 new text begin the instructions on the next page. new text end 21.14 new text begin The attached exemption form lists some different sources of money in your account new text end 21.15 new text begin that may be protected. If your money is from one or more of these sources, place a new text end 21.16 new text begin check on the line on the form next to the sources of your money. If it is from one of new text end 21.17 new text begin these sources, the Creditor cannot take it. new text end 21.18 new text begin BUT, new text end new text begin you must follow the instructions and return the exemption form and new text end 21.19 new text begin copies of your bank statements from the last 60 days new text end new text begin to have the bank unfreeze your new text end 21.20 new text begin money. If you do not follow the instructions, your financial institution will give the money new text end 21.21 new text begin to the Creditor. If that happens and it is protected, you can still get it back from the new text end 21.22 new text begin Creditor later, but that is not as easy to do as filling in the form now. new text end 21.23 new text begin See next pages for instructions and the exemption form. new text end 21.24     new text begin Subd. 1c. new text end new text begin Form of instructions. new text end new text begin The instructions required must be in a separate new text end 21.25 new text begin form and must be substantially in the following form: new text end 21.26 new text begin INSTRUCTIONS new text end 21.27 new text begin Note: new text end new text begin The creditor is who you owe the money to. You are the debtor. new text end 21.28 new text begin 1. Fill out both of the attached exemption forms in this packet. new text end 21.29 new text begin If you check one of the lines, you should also give proof that shows that some new text end 21.30 new text begin or all of the money in your account is from one or more of the protected sources. new text end 21.31 new text begin Creditors may ask for a hearing if they question your exemptions. To avoid a hearing: new text end 21.32 new text begin Case numbers should be added to the form. Copies of documents should be new text end 21.33 new text begin sent with the form. new text end 21.34 new text begin NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO new text end 21.35 new text begin THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS new text end 21.36 new text begin FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank new text end 21.37 new text begin statements in case there are questions about your claim. If you do not send to the new text end 22.1 new text begin creditor's attorney (or to the creditor, if no attorney) bank statements with your new text end 22.2 new text begin exemption claim, the financial institution may release your money to the creditor. new text end 22.3 new text begin 2. new text end new text begin Sign new text end new text begin the exemption forms. new text end new text begin Make one copy to keep for yourself. new text end 22.4 new text begin 3. new text end new text begin Mail or deliver new text end new text begin the other copies of the form by (insert date). new text end 22.5 new text begin BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY. new text end 22.6 new text begin One copy of the form and the copies of your bank statements go to: new text end 22.7 ..... 22.8 new text begin (Insert name of creditor or creditor's attorney) new text end 22.9 ..... 22.10 new text begin (Insert address of creditor or creditor's attorney) new text end 22.11 new text begin One copy goes to: new text end 22.12 ..... 22.13 new text begin (Insert name of bank) new text end 22.14 ..... 22.15 new text begin (Insert address of bank) new text end 22.16 new text begin HOW THE PROCESS WORKS new text end 22.17 new text begin If You Do Not Send in the Exemption Form and Bank Statements: new text end 22.18 new text begin 14 days after the date of this letter some or all of your money may be turned over to new text end 22.19 new text begin the creditor pursuant to Minnesota statute. new text end 22.20 new text begin If You Send in the Exemption Form and Bank Statements: new text end 22.21 new text begin Any money that is NOT protected can be turned over to the creditor. new text end 22.22 new text begin If the Creditor Does Not Object: new text end 22.23 new text begin The financial institution will unfreeze your money six business days after the new text end 22.24 new text begin institution gets your completed form. new text end 22.25 new text begin If the Creditor Objects: new text end 22.26 new text begin The money you have said is protected on the form will be held by the bank. The new text end 22.27 new text begin creditor has six business days to object (disagree) and ask the court to hold a hearing. You new text end 22.28 new text begin will receive a Notice of Objection and a Notice of Hearing. new text end 22.29 new text begin The financial institution will hold the money until a court decides whether your new text end 22.30 new text begin money is protected or not. Some reasons a creditor may object are because you did not new text end 22.31 new text begin send copies of your bank statements or other proof of the benefits you received. Be sure to new text end 22.32 new text begin include these when you send your exemption form. new text end 22.33 new text begin You may want to talk to a lawyer for advice about this process. If you are low new text end 22.34 new text begin income you can call Legal Aid. new text end 22.35 new text begin PENALTIES: new text end 22.36 new text begin If you claim that your money is protected and a court decides you made that claim new text end 22.37 new text begin in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an new text end 23.1 new text begin additional amount of up to $100. For example, it may be bad faith if you claim you receive new text end 23.2 new text begin government benefits that you do not receive. new text end 23.3 new text begin If the creditor made a bad faith objection to your claim that your money is protected, new text end 23.4 new text begin the court can order them to pay costs, actual damages, attorney fees, and an additional new text end 23.5 new text begin amount of up to $100. new text end 23.6     new text begin Subd. 1d. new text end new text begin Form of exemption form. new text end new text begin The exemption form required by this new text end 23.7 new text begin subdivision must be a separate form and must be in substantially the following form: new text end 23.8 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 23.9 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 23.10 ..... new text begin (Creditor) new text end 23.11 ..... new text begin (Debtor) new text end 23.12 23.13 ..... new text begin (Financial new text end new text begin institution) new text end 23.14 new text begin EXEMPTION FORM new text end 23.15 new text begin A. new text end new text begin HOW MUCH MONEY IS PROTECTED new text end 23.16 ..... new text begin I claim ALL of the money being frozen by the bank is protected. new text end 23.17 ..... new text begin I claim SOME of the money is protected. The amount I claim is protected is $....... new text end 23.18 new text begin B. new text end new text begin WHY THE MONEY IS PROTECTED new text end 23.19 23.20 new text begin My money is protected because I get it from one or more of the following places: new text end new text begin (Check all that apply) new text end 23.21 ..... new text begin Government benefits new text end 23.22 new text begin Government benefits include, but are not limited to, the following: new text end 23.23 new text begin MFIP new text end new text begin - Minnesota family investment program, new text end 23.24 new text begin MFIP Diversionary Work Program, new text end 23.25 new text begin Work participation cash benefit, new text end new text begin new text end 23.26 new text begin GA new text end new text begin - general assistance, new text end 23.27 new text begin EA new text end new text begin - emergency assistance, new text end 23.28 new text begin MA new text end new text begin - medical assistance, new text end 23.29 new text begin GAMC new text end new text begin - general assistance medical care, new text end 23.30 new text begin EGA new text end new text begin - emergency general assistance, new text end 23.31 new text begin MSA new text end new text begin - Minnesota supplemental aid, new text end 23.32 new text begin MSA-EA new text end new text begin - MSA emergency assistance, new text end 23.33 new text begin Food Support, new text end 23.34 new text begin SSI - Supplemental Security Income, new text end 23.35 new text begin MinnesotaCare, new text end 23.36 new text begin Medicare part B premium payments, new text end 23.37 new text begin Medicare part D extra help, new text end 23.38 new text begin Energy or fuel assistance. new text end 23.39 new text begin LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end 23.40 ..... 23.41 new text begin LIST THE CASE NUMBER AND COUNTY new text end 24.1 new text begin Case Number: new text end ..... 24.2 new text begin County: new text end ..... 24.3 new text begin Government benefits also include: new text end 24.4 ..... new text begin Social Security benefits new text end 24.5 ..... new text begin Unemployment benefits new text end 24.6 ..... new text begin Workers' compensation new text end 24.7 ..... new text begin Veterans benefits new text end 24.8 24.9 24.10 new text begin If you receive any of these government benefits, include copies of any new text end new text begin documents you have that show you receive Social Security, unemployment, new text end new text begin workers' compensation, or veterans benefits. new text end 24.11 ..... new text begin Other assistance based on need new text end 24.12 new text begin You may have assistance based on need from another source that is not on the list. If you new text end 24.13 new text begin do, check this box, and fill in the source of your money on the line below: new text end 24.14 new text begin Source: new text end ..... 24.15 new text begin Include copies of any documents you have that show the source of this money. new text end 24.16 new text begin EARNINGS new text end 24.17 new text begin ALL or SOME of your earnings (wages) may also be protected. new text end 24.18 ..... new text begin All of your earnings (wages) are protected if: new text end 24.19 ..... new text begin You get government benefits (see list of government benefits) new text end 24.20 ..... new text begin You currently receive other assistance based on need new text end 24.21 ..... new text begin You have received government benefits in the last six months new text end 24.22 ..... new text begin You were in jail or prison in the last six months new text end 24.23 24.24 24.25 24.26 new text begin If you check one of these lines, new text end new text begin your wages are only protected for 60 days after new text end new text begin they are deposited in your account so new text end new text begin you MUST send the creditor a copy of new text end new text begin BANK STATEMENTS new text end new text begin that show what was in your account new text end new text begin for the 60 days right new text end new text begin before the bank froze your money new text end new text begin . new text end 24.27 ..... new text begin Some of your earnings (wages) are protected. new text end 24.28 24.29 24.30 new text begin If all of your earnings are not exempt, then some of your earnings are still protected new text end new text begin for 20 days after they were deposited in your account. The amount protected is the new text end new text begin larger amount of: new text end 24.31 new text begin 75 percent of your wages (after taxes are taken out); or new text end 24.32 new text begin (insert the sum of the current federal minimum wage) multiplied by 40. new text end 24.33 new text begin OTHER EXEMPT FUNDS new text end 24.34 24.35 new text begin The money from the following are also completely protected after they are new text end new text begin deposited in your account. new text end 24.36 ..... new text begin An accident, disability, or retirement pension or annuity new text end 24.37 ..... new text begin Payments to you from a life insurance policy new text end 24.38 ..... new text begin Earnings of your child who is under 18 years of age new text end 24.39 ..... new text begin Child support new text end 24.40 24.41 24.42 24.43 ..... new text begin Money paid to you from a claim for damage or destruction of property new text end new text begin new text end new text begin Property includes household goods, farm tools or machinery, tools for your job, new text end new text begin business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, new text end new text begin clothes, furniture, or appliances. new text end 24.44 ..... new text begin Death benefits paid to you new text end 25.1 new text begin I give permission to any agency that has given me cash benefits to give information new text end 25.2 new text begin about my benefits to the above-named creditor, or its attorney. The information will new text end new text begin ONLY new text end new text begin new text end 25.3 new text begin concern whether I get benefits or not, or whether I have gotten them in the past six months. new text end 25.4 new text begin If I was an inmate in the last six months, I give my permission to the correctional new text end 25.5 new text begin institution to tell the above-named creditor that I was an inmate there. new text end 25.6 new text begin YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S new text end 25.7 new text begin ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK. new text end 25.8 new text begin REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR new text end 25.9 new text begin THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE new text end 25.10 new text begin INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY. new text end 25.11 new text begin I have mailed or delivered a copy of this form to: new text end 25.12 ..... 25.13 new text begin (Insert name of creditor or creditor's attorney) new text end 25.14 ..... 25.15 new text begin (Insert address of creditor or creditor's attorney) new text end 25.16 new text begin I have also mailed or delivered a copy of this exemption form to my bank at the new text end 25.17 new text begin address listed in the instructions. new text end 25.18 new text begin DATED: new text end ..... ..... 25.19 new text begin DEBTOR new text end 25.20 ..... 25.21 new text begin DEBTOR ADDRESS new text end 25.22 ..... 25.23 new text begin DEBTOR TELEPHONE NUMBER new text end 25.24    Subd. 2. Effect of exemption notice. Within two business days after receipt of the 25.25execution levy and new text begin the notice, instructions, and two copies of the new text end exemption notices, the 25.26financial institution shall serve upon the judgment debtor new text begin the notice, instructions, and new text end two 25.27copies of the exemption notice. The financial institution shall serve the notice by first 25.28class mail to the last known address of the judgment debtor. If no claim of exemption 25.29is received by the financial institution within 14 days after the exemption notices are 25.30mailed to the judgment debtor, the funds remain subject to the execution levy and shall 25.31be remitted to the judgment creditor's attorney within seven new text begin six business new text end days. If the 25.32judgment debtor elects to claim an exemption, the judgment debtor shall complete the 25.33exemption notice, sign it under penalty of perjury, and deliver one copy to the financial 25.34institution and one copy to the attorney for the judgment creditor within 14 days of the 25.35date postmarked on the correspondence mailed to the judgment debtor containing the 25.36exemption notices. new text begin The debtor is also required to include copies of bank statements for new text end 25.37 new text begin the prior 60 days with the exemption notice. In the event that there is no attorney for the new text end 26.1 new text begin judgment creditor, the notice must be sent directly to the judgment creditor. new text end Failure of the 26.2judgment debtor to deliver the executed exemption notice new text begin or copies of the required bank new text end 26.3 new text begin statements for the prior 60 days new text end does not constitute a waiver of any claimed right to an 26.4exemption. Upon timely receipt of a claim of exemption, funds not claimed to be exempt 26.5by the judgment debtor remain subject to the execution levy. All money claimed to be 26.6exempt shall be released to the judgment debtor upon the expiration of seven new text begin six business new text end 26.7days after the date postmarked on the envelope containing the executed exemption 26.8notice mailed to the financial institution, or the date of personal delivery of the executed 26.9exemption notice to the financial institution, unless within that time the attorney for the 26.10judgment creditor interposes an objection to the exemption. 26.11    Subd. 3. Objection to exemption claim new text begin Objections and request for hearing new text end . 26.12 new text begin An new text end objection shall be interposed new text begin , within six business days of receipt by the creditor of new text end 26.13 new text begin an exemption claim from the debtor, new text end by mailing or delivering one copy of the written 26.14objection new text begin Notice of Objection and Notice of Hearing new text end to the financial institution and one 26.15copy of the written objection new text begin Notice of Objection and Notice of Hearing new text end to the judgment 26.16debtor along with a copy of the judgment debtor's claimed exemption form. Both copies 26.17of an objection to an exemption claim shall be mailed or delivered on the same date. 26.18The financial institution may rely on the date of mailing or delivery of a notice to it in 26.19computing any time periods in this section. The written objection new text begin Notice of Objection and new text end 26.20 new text begin Notice of Hearing form new text end must be substantially in the form specified new text begin set out new text end in subdivision 5. 26.21 new text begin The court administrator may charge a fee of $1 for the filing of a Notice of Objection new text end 26.22 new text begin and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, new text end 26.23 new text begin the court administrator shall schedule the matter for hearing no sooner than five business new text end 26.24 new text begin days but no later than seven business days from the date of filing. A debtor may request new text end 26.25 new text begin continuance of the hearing by notifying the creditor and the court. The court shall schedule new text end 26.26 new text begin the continued hearing within seven days of the original hearing date. new text end 26.27 new text begin An order stating whether the debtor's funds are exempt shall be issued by the court new text end 26.28 new text begin within three days of the date of the hearing. new text end 26.29    Subd. 4. Duties of financial institution if objection is made to exemption claim. 26.30Upon receipt of a written objection new text begin Notice of Objection and Notice of Hearing new text end from the 26.31judgment creditor within the specified seven-day new text begin six-day new text end period, the financial institution 26.32shall retain the funds claimed to be exempt. Unless the financial institution receives a 26.33request for hearing and notice of hearing from the judgment debtor asserting exemption 26.34rights within ten days after receipt of a written objection to the exemption, the funds 26.35remain subject to the execution levy as if no claim of exemption had been made and shall 26.36be remitted to the judgment creditor's attorney within seven days. If a request for hearing 27.1and notice of hearing to determine the validity of a claim of exemption is received by the 27.2financial institution within the period provided, it shall retain the funds claimed to be 27.3exempt until otherwise ordered by the court. new text begin The financial institution shall retain the funds new text end 27.4 new text begin claimed to be exempt until otherwise ordered by the court, upon mutual agreement of the new text end 27.5 new text begin parties, or until the garnishment lapses pursuant to subdivision 7. new text end 27.6    Subd. 5. new text begin Form of new text end Notice of Objection new text begin and Notice of Hearing new text end . (a) The written 27.7objection to the judgment debtor's claim of exemption must be in substantially the 27.8following form: 27.9 STATE OF MINNESOTA DISTRICT COURT 27.10 County of ..... ..... JUDICIAL DISTRICT 27.11 27.12 ..... (Judgment Creditor) OBJECTION TO 27.13 ..... (Judgment Debtor) EXEMPTION CLAIM 27.14 27.15 ..... (Garnishee) (Third Party) 27.16The judgment creditor objects to your claim for exemption from garnishment, levy of 27.17execution, order for attachment (strike inapplicable language) for the following reason(s): ..... 27.18 ..... 27.19 ..... 27.20 27.21Because of this objection, your financial institution will retain the funds you claimed 27.22to be exempt for an additional ten days. If you wish to request a hearing on your exemption 27.23claim, you need to do so within ten days from the date the objection was personally served 27.24on you, or within 13 days from the date the objection was mailed to you. You may request 27.25a hearing by completing the attached form and filing it with the court administrator. 27.261. The court administrator's office shall provide clerical assistance to help with the 27.27writing and filing of a Request for Hearing by any person not represented by counsel. The 27.28court administrator may charge a fee of $1 for the filing of a Request for Hearing. 27.292. Upon the filing of a Request for Hearing, the court administrator shall schedule 27.30the matter for a hearing no later than five business days from the date of filing. The court 27.31administrator shall forthwith send a completed copy of the request, including the hearing 27.32date, time, and place to the adverse party and to the financial institution by first class mail. 27.333. If it is possible that the financial institution might not receive the request mailed 27.34from the court administrator within ten days, then you may want to personally deliver a 27.35copy of the request to the financial institution after you have filed your request with the 27.36court. 28.14. An order stating whether your funds are exempt shall be issued by the court 28.2within three days of the date of the hearing. 28.3If you do not file a Request for Hearing within ten days of the date the objection was 28.4personally served on you, or within 13 days from the date the objection was mailed to you, 28.5your financial institution may turn your funds over to your judgment creditor. 28.6If you file a Request for Hearing and your financial institution receives it within ten 28.7days of the date it received this objection, your financial institution will retain your funds 28.8claimed to be exempt until otherwise ordered by the court. 28.9 ..... 28.10 Attorney for Judgment Creditor 28.11 new text begin (a) The Written Objection and Notice of Hearing must be in substantially the new text end 28.12 new text begin following form: new text end 28.13 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 28.14 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 28.15 ..... 28.16 new text begin (Creditor) new text end 28.17 28.18 28.19 28.20 new text begin CREDITOR'S NOTICE OF new text end new text begin OBJECTION AND NOTICE OF new text end new text begin HEARING ON EXEMPTION new text end new text begin CLAIM new text end 28.21 ..... 28.22 new text begin (Debtor) new text end 28.23 ..... 28.24 new text begin (Financial Institution) new text end 28.25 new text begin (DEBTOR) new text end 28.26 ..... 28.27 new text begin ADDRESS new text end 28.28 ..... 28.29 ..... 28.30 ..... 28.31 ..... 28.32 ..... 28.33 28.34 new text begin (CREDITOR OR CREDITOR'S new text end new text begin ATTORNEY) new text end 28.35 ..... 28.36 new text begin NOTICE OF HEARING new text end 28.37 28.38 28.39 new text begin The creditor objects to your exemption new text end new text begin claim. This hearing is to resolve your new text end new text begin exemption claim. new text end 28.40 new text begin Hearing Date: new text end ..... 28.41 new text begin Time: new text end ..... 28.42 new text begin Hearing Place: new text end ..... 29.1 new text begin The creditor objects to your claim of exemption from levy of execution for the new text end 29.2 new text begin following reason(s): new text end 29.3 ..... 29.4 ..... 29.5 ..... 29.6 new text begin (Note: Bring with you to the hearing all documents and materials supporting new text end 29.7 new text begin your exemption claim. new text end new text begin Failure to do so could delay the court's decision.) new text end 29.8 new text begin If the creditor receives all documents and materials supporting your exemption new text end 29.9 new text begin claim before the hearing date, the creditor may agree with your exemption claim and you new text end 29.10 new text begin might be able to avoid a hearing. new text end 29.11 new text begin Because a court hearing will be held on your claim that your funds are protected, new text end 29.12 new text begin your financial institution will retain the funds until it receives an order from the court or new text end 29.13 new text begin upon mutual agreement between you and the creditor. new text end 29.14    Subd. 6. Request for hearing and notice for hearing. The request for hearing 29.15accompanying the objection notice must be in substantially the following form: 29.16 STATE OF MINNESOTA DISTRICT COURT 29.17 County of ..... ..... JUDICIAL DISTRICT 29.18 29.19 ..... (Judgment Creditor) REQUEST FOR HEARING 29.20 ..... (Judgment Debtor) AND NOTICE FOR HEARING 29.21 29.22 ..... (Garnishee) (Third Party) 29.23I hereby request a hearing to resolve the exemption claim which has been made 29.24in this case regarding funds in the account of ............. (Judgment Debtor) at the ......... 29.25(Financial Institution). 29.26I believe the property being held is exempt because ..... 29.27 ..... 29.28 29.29 Dated: ..... ..... 29.30 (JUDGMENT DEBTOR) 29.31 ..... 29.32 (ADDRESS) 29.33 ..... 29.34 HEARING DATE: ..... TIME: ..... 29.35 HEARING PLACE: ..... 29.36(Note to both parties: Bring with you to the hearing all documents and materials 29.37relevant to the exemption claim and objection. Failure to do so could delay the court's 29.38decision.) 30.1    Subd. 7. Release of funds. At any time during the procedure specified in this 30.2section, the judgment debtor or the attorney for the judgment creditor may, by a writing 30.3dated after the service of the writ of execution, direct the financial institution to release the 30.4funds in question to the other party. Upon receipt of a release, the financial institution 30.5shall release the funds as directed. 30.6    Subd. 8. Subsequent proceedings; bad faith claims. If in subsequent proceedings 30.7brought by the judgment debtor or the judgment creditor, the claim of exemption is not 30.8upheld, and the court finds that it was asserted in bad faith, the judgment creditor shall be 30.9awarded actual damages, costs, and reasonable attorney fees resulting from the additional 30.10proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and 30.11the court finds that the judgment creditor disregarded the claim of exemption in bad faith, 30.12the judgment debtor shall be awarded costs, reasonable attorney fees, actual damages, and 30.13an amount not to exceed $100. The underlying judgment must be modified to reflect 30.14assessment of damages, costs, and attorney fees. However, if the party in whose favor a 30.15penalty assessment is made is not actually indebted to the party's attorney for fees, the 30.16attorney's fee award shall be made directly to the attorney and if not paid, an appropriate 30.17judgment in favor of the attorney shall be entered. Upon motion of any party in interest, 30.18on notice, the court shall determine the validity of any claim of exemption, and may make 30.19any order necessary to protect the rights of those interested. No financial institution is 30.20liable for damages for complying with this section. Both copies of an exemption claim 30.21or an objection to an exemption claim must be mailed or delivered on the same date. 30.22The financial institution may rely on the date of mailing or delivery of a notice to it in 30.23computing any time periods in this section. 30.24    Sec. 4. Minnesota Statutes 2008, section 571.71, is amended to read: 30.25571.71 GARNISHMENT; WHEN AUTHORIZED. 30.26As an ancillary proceeding to a civil action for the recovery of money, a creditor 30.27may issue a garnishment summons as provided in this chapter against any third party in 30.28the following instances: 30.29(1) at the time the civil action is commenced or at any time after the commencement 30.30of the civil action, but before the entry of a judgment, if the court orders the issuance of 30.31the garnishment summons pursuant to section 571.93; 30.32(2) at any time 40 new text begin 45 new text end days or more after service of the summons and complaint 30.33upon the debtor in the civil action when a judgment by default could have, but has not, 30.34been entered pursuant to rule 55.01(a) of the Minnesota Rules of Civil Procedure for the 30.35District Courts. new text begin Garnishment under this clause is effective only after the Notice of Intent new text end 31.1 new text begin to Garnish form in section 571.72, subdivision 11, and the Exemption form in section new text end 31.2 new text begin 571.72, subdivision 10, are served on the debtor at any time 20 or more days after the new text end 31.3 new text begin service of the Summons and Complaint and, in addition, the creditor does not receive an new text end 31.4 new text begin Answer from the debtor within 25 days after service of the Notice of Intent to Garnish. new text end 31.5 new text begin The Notice of Intent to Garnish form and the Exemption form must be substantially in the new text end 31.6 new text begin form set forth in section 571.72, subdivisions 10 and 11. If a creditor sends a Notice of new text end 31.7 new text begin Intent to Garnish form to a debtor under this clause, the creditor cannot obtain a default new text end 31.8 new text begin judgment against the debtor under rule 55.01(a) of the Minnesota Rules of Civil Procedure new text end 31.9 new text begin for the District Court until 25 days after the service of the Notice of Intent to Garnish new text end 31.10 new text begin form. new text end No filing of a pleading or other documents by the creditor is required to issue 31.11a garnishment summons under this clause; however, the creditor must comply with the 31.12service requirement of section 571.72, subdivision 4; or 31.13(3) at any time after entry of a money judgment in the civil action. 31.14    Sec. 5. Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision 31.15to read: 31.16     new text begin Subd. 10. new text end new text begin Exemption notice for prejudgment garnishment. new text end 31.17 new text begin EXEMPTION NOTICE new text end 31.18 new text begin IMPORTANT NOTICE: A garnishment summons may be served on your new text end 31.19 new text begin employer, bank, or other third parties without any further court proceeding or notice new text end 31.20 new text begin to you. See the attached Notice of Intent to Garnish for more information. new text end 31.21 new text begin The following money and wages may be protected (the legal word is exempt) new text end 31.22 new text begin from garnishment: new text end 31.23 new text begin 1. Financial institutions/bank new text end 31.24 new text begin Some of the money in your account may be protected because you receive new text end 31.25 new text begin government benefits from one or more of the following places: new text end 31.26 new text begin MFIP new text end new text begin - Minnesota family investment program, new text end 31.27 new text begin MFIP Diversionary Work Program, new text end 31.28 new text begin Work participation cash benefit, new text end 31.29 new text begin GA new text end new text begin - general assistance, new text end 31.30 new text begin EA new text end new text begin - emergency assistance, new text end 31.31 new text begin MA new text end new text begin - medical assistance, new text end 31.32 new text begin GAMC new text end new text begin - general assistance medical care, new text end 31.33 new text begin EGA new text end new text begin - emergency general assistance or county crisis funds, new text end 31.34 new text begin MSA new text end new text begin - Minnesota supplemental aid, new text end 31.35 new text begin MSA-EA new text end new text begin - MSA emergency assistance, new text end 32.1 new text begin Food Support, new text end 32.2 new text begin SSI - Supplemental Security Income, new text end 32.3 new text begin MinnesotaCare, new text end 32.4 new text begin Medicare part B premium payments, new text end 32.5 new text begin Medicare part D extra help, new text end 32.6 new text begin Energy or fuel assistance, new text end 32.7 new text begin Social Security benefits, new text end 32.8 new text begin Unemployment benefits, new text end 32.9 new text begin Workers' compensation, new text end 32.10 new text begin Veterans benefits. new text end 32.11 new text begin Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK new text end 32.12 new text begin STATEMENTS that show what was in your account for the past 60 days may give new text end 32.13 new text begin the creditor enough information about your exemption claim to avoid a garnishment. new text end 32.14 new text begin 2. Earnings new text end 32.15 new text begin All or some of your earnings may be completely protected from garnishment if: new text end 32.16 new text begin All of your earnings (wages) may be protected if: new text end 32.17 new text begin You get government benefits (see list of government benefits) new text end 32.18 new text begin You currently receive other assistance based on need new text end 32.19 new text begin You have received government benefits in the last six months new text end 32.20 new text begin You were in jail or prison in the last six months new text end 32.21 new text begin Your wages are only protected for 60 days after they are deposited in your account new text end 32.22 new text begin so new text end new text begin it would be helpful if you immediately send the undersigned creditor a copy of new text end 32.23 new text begin BANK STATEMENTS new text end new text begin that show what was in your account new text end new text begin for the past 60 days new text end new text begin . new text end 32.24 new text begin Some of your earnings (wages) may be protected if: new text end 32.25 new text begin If all of your earnings are not exempt, some of your earnings may still be protected new text end 32.26 new text begin for 20 days after they were deposited in your account. The amount protected is the larger new text end 32.27 new text begin amount of: new text end 32.28 new text begin 75 percent of your wages (after taxes are taken out); or new text end 32.29 new text begin (insert the sum of the current federal minimum wage) multiplied by 40. new text end 32.30 new text begin The money from the following are also exempt for 20 days after they are new text end 32.31 new text begin deposited in your account. new text end 32.32 new text begin An accident, disability, or retirement pension or annuity new text end 32.33 new text begin Payments to you from a life insurance policy new text end 32.34 new text begin Earnings of your child who is under 18 years of age new text end 32.35 new text begin Child support new text end 33.1 new text begin Money paid to you from a claim for damage or destruction of property. new text end new text begin new text end 33.2 new text begin Property includes household goods, farm tools or machinery, tools for your job, business new text end 33.3 new text begin equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes, new text end 33.4 new text begin furniture, or appliances. new text end 33.5 new text begin Death benefits paid to you. new text end 33.6 new text begin YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU new text end 33.7 new text begin RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage new text end 33.8 new text begin garnishment. BUT if the creditor garnishes your bank account, you will not get new text end 33.9 new text begin the notice until AFTER the account has been frozen. IF YOU BELIEVE THE new text end 33.10 new text begin MONEY IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU new text end 33.11 new text begin SHOULD IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD new text end 33.12 new text begin TELL THEM WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT new text end 33.13 new text begin TO SEE IF YOU CAN AVOID GARNISHMENT. new text end 33.14 new text begin Creditor new text end ..... 33.15 new text begin Creditor address new text end ..... 33.16 new text begin Creditor telephone number new text end ..... 33.17    Sec. 6. Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision 33.18to read: 33.19     new text begin Subd. 11. new text end new text begin Notice of intent to garnish. new text end new text begin The notice of intent to garnish must be in new text end 33.20 new text begin substantially the following form: new text end 33.21 new text begin IMPORTANT! READ THIS CAREFULLY! new text end 33.22 new text begin NOTICE OF INTENT TO GARNISH new text end 33.23 ..... new text begin against new text end ..... 33.24 new text begin Plaintiff/Creditor new text end new text begin Defendant/Debtor new text end 33.25 new text begin Your money, property, or earnings are in danger of being garnished because new text end 33.26 new text begin you did not send a written "Answer" to the Summons and Complaint served on you new text end 33.27 new text begin over 20 days ago. new text end 33.28 new text begin There may not be a case filed in court, BUT because you did not send a written new text end 33.29 new text begin "Answer" the creditor may serve a garnishment summons on your employer, bank, or new text end 33.30 new text begin other third parties. This means that your money or wages can be garnished (held or taken). new text end 33.31 new text begin Under Minnesota law, this can happen any time 20 days after the date you receive this new text end 33.32 new text begin notice. new text end 33.33 new text begin There will be new text end new text begin NO COURT HEARING new text end new text begin or any further notice to you prior to a new text end 33.34 new text begin garnishment if you do nothing. There may not be a file open at the Clerk of the Court's new text end 33.35 new text begin office. new text end new text begin There are things you can do to avoid a garnishment, but you must act quickly. new text end 34.1 new text begin Please read these instructions carefully. new text end new text begin You have 20 days new text end new text begin to do one of the following: new text end 34.2 new text begin 1. new text end new text begin Send an Answer. new text end new text begin If you do not think you owe the money or if you have a legal new text end 34.3 new text begin reason that you did not pay, send a written "Answer" to the Summons and Complaint. new text end 34.4 new text begin Your "Answer" should tell the creditor why you think you do not owe some or all of the new text end 34.5 new text begin money. Contact a lawyer if you do not know what to do, need help with an answer, or new text end 34.6 new text begin have any questions about the debt. new text end 34.7 new text begin 2. new text end new text begin Claim an Exemption. new text end new text begin Even if you do not have a defense to the complaint, some new text end 34.8 new text begin of your money may be protected (the legal word is exempt) from garnishment. This new text end 34.9 new text begin means it is protected and cannot be taken. The creditor will send you a form to claim these new text end 34.10 new text begin exemptions at a later time, new text end new text begin but you can possibly avoid the garnishment new text end new text begin by contacting new text end 34.11 new text begin the person below new text end new text begin immediately new text end new text begin to claim your exemption. Attached to this notice is a list new text end 34.12 new text begin of exemptions you may be able to claim. new text end 34.13 new text begin 3. new text end new text begin If you do not have a defense and your money is not exempt new text end new text begin you can new text end new text begin call new text end new text begin the new text end 34.14 new text begin person below before the 20 days are up and try to set up a payment plan that works for new text end 34.15 new text begin both you and your creditor. You can contact the person below at any time to try to work new text end 34.16 new text begin out a payment plan, but if you wait too long or cannot agree on a payment plan, they may new text end 34.17 new text begin garnish your wages, bank accounts, or assets. new text end 34.18 new text begin If you do not do any of these things, your money can be garnished. new text end new text begin The creditor new text end 34.19 new text begin can garnish your wages, bank accounts, or other assets. They do not have to go to court to new text end 34.20 new text begin let you know when they start taking your money. new text end 34.21 new text begin LAW FIRM new text end 34.22 new text begin Dated: new text end ..... new text begin By: new text end ..... 34.23 new text begin Attorney, # new text end 34.24 new text begin Attorneys for Plaintiff new text end 34.25 new text begin Address new text end 34.26 new text begin Telephone new text end 34.27    Sec. 7. Minnesota Statutes 2008, section 571.911, is amended to read: 34.28571.911 EXEMPTION NOTICE; DUTY OF FINANCIAL INSTITUTION. 34.29If the garnishment summons is used to garnish funds of a debtor who is a natural 34.30person and if the funds to be garnished are held on deposit at a financial institution, the 34.31creditor shall serve with the garnishee summons new text begin a notice, instructions, and new text end two copies of 34.32an exemption notice. The notice new text begin , instructions, and exemption notices new text end must be substantially 34.33in the form new text begin forms new text end set forth in section 571.912. Failure of the creditor to send the exemption 34.34notice renders the garnishment void, and the financial institution shall take no action. 34.35Upon receipt of the garnishment summons and exemption notices, the financial institution 35.1shall retain as much of the amount under section 571.73 as the financial institution has on 35.2deposit owing to the debtor, but not more than 110 percent of the creditor's claim. 35.3    Sec. 8. Minnesota Statutes 2008, section 571.912, is amended to read: 35.4571.912 FORM OF new text begin NOTICE, INSTRUCTIONS, AND new text end EXEMPTION NOTICE. 35.5     new text begin Subdivision 1. new text end new text begin Form of notice. new text end The notice new text begin , instructions, and exemption notice new text end 35.6informing a debtor that an order for attachment, new text begin a new text end garnishment summons, or levy by 35.7execution has been used to attach funds of the debtor to satisfy a claim must be new text begin a separate new text end 35.8 new text begin notice and must be new text end substantially in the following form: 35.9 STATE OF MINNESOTA DISTRICT COURT 35.10 COUNTY OF ..... ..... JUDICIAL DISTRICT 35.11 ..... (Creditor) 35.12 ..... (Debtor) 35.13 TO: Debtor EXEMPTION NOTICE 35.14 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 35.15 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 35.16 ..... new text begin (Creditor) new text end 35.17 ..... new text begin (Debtor) new text end 35.18 35.19 ..... new text begin (Financial new text end new text begin institution) new text end 35.20 new text begin IMPORTANT NOTICE new text end 35.21 new text begin YOUR FUNDS HAVE BEEN GARNISHED new text end 35.22 new text begin The Creditor has frozen money in your account at your financial institution. new text end 35.23 new text begin Your account balance is $....... new text end 35.24 new text begin The amount being held is $....... new text end 35.25 new text begin The amount being held will be frozen for 14 days from the date of this notice. new text end 35.26 new text begin Some of your money in your account may be protected (the legal word is new text end 35.27 new text begin exempt). You may be able to get it sooner than 14 days if you act quickly and follow new text end 35.28 new text begin the instructions on the next page. new text end 35.29 new text begin The attached exemption form lists some different sources of money in your account new text end 35.30 new text begin that may be protected. If your money is from one or more of these sources, place a new text end 35.31 new text begin check on the line on the form next to the sources of your money. If it is from one of new text end 35.32 new text begin these sources, the Creditor cannot take it. new text end 35.33 new text begin BUT, new text end new text begin you must follow the instructions and return the exemption form and new text end 35.34 new text begin copies of your bank statements from the last 60 days new text end new text begin to have the bank unfreeze your new text end 35.35 new text begin money. If you do not follow the instructions or your Creditor gets an order from the court new text end 35.36 new text begin or writ of execution, your financial institution will give the money to your Creditor. If that new text end 36.1 new text begin happens and it is protected, you can still get it back from the Creditor later, but that is not new text end 36.2 new text begin as easy to do as filling in the form now. new text end 36.3 new text begin See next pages for instructions and the exemption form. new text end 36.4     new text begin Subd. 2. new text end new text begin Form of instructions. new text end new text begin The instructions required must be in a separate form new text end 36.5 new text begin and must be substantially in the following form: new text end 36.6 new text begin INSTRUCTIONS new text end 36.7 new text begin Note: new text end new text begin The creditor is who you owe the money to. You are the debtor. new text end 36.8 new text begin 1. Fill out new text end new text begin both new text end new text begin of the attached exemption forms in this packet. new text end 36.9 new text begin If you check one of the lines, you should also give proof that shows that some new text end 36.10 new text begin or all of the money in your account is from one or more of the protected sources. new text end 36.11 new text begin Creditors may ask for a hearing if they question your exemptions. new text end 36.12 new text begin To avoid a hearing: new text end 36.13 new text begin Case numbers should be added to the form. new text end 36.14 new text begin Copies of documents should be sent with the form. new text end 36.15 new text begin NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO new text end 36.16 new text begin THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS new text end 36.17 new text begin FOR THE PAST 60 DAYS BEFORE THE GARNISHMENT. Keep a copy of your new text end 36.18 new text begin bank statements in case there are questions about your claim. If you do not send to new text end 36.19 new text begin the creditor's attorney (or to the creditor, if no attorney) bank statements with your new text end 36.20 new text begin exemption claim, the financial institution may release your money to the creditor new text end 36.21 new text begin once the creditor gives the financial institution a court order directing it to turn new text end 36.22 new text begin over the funds. new text end 36.23 new text begin 2. new text end new text begin Sign new text end new text begin the exemption forms. new text end new text begin Make one copy to keep for yourself. new text end 36.24 new text begin 3. new text end new text begin Mail or deliver new text end new text begin the other copies of the form by (insert date). new text end 36.25 new text begin BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY. new text end 36.26 new text begin One copy of the form and the copies of your bank statements go to: new text end 36.27 ..... 36.28 new text begin (Insert name of creditor or creditor's attorney) new text end 36.29 ..... 36.30 new text begin (Insert address of creditor or creditor's attorney) new text end 36.31 new text begin One copy goes to: new text end 36.32 ..... 36.33 new text begin (Insert name of bank) new text end 36.34 ..... 36.35 new text begin (Insert address of bank) new text end 36.36 new text begin HOW THE PROCESS WORKS new text end 36.37 new text begin If You Do Not Send in the Exemption Form and Bank Statements: new text end 37.1 new text begin 14 days after the date of this letter some or all of your money may be turned over to new text end 37.2 new text begin the creditor once they get an order from the court telling the financial institution to do this. new text end 37.3 new text begin If You Send in the Exemption Form and Bank Statements: new text end 37.4 new text begin Any money that is NOT protected can be turned over to the creditor once they get new text end 37.5 new text begin an order from the court. new text end 37.6 new text begin If the Creditor Does Not Object: new text end 37.7 new text begin The financial institution will unfreeze your money six business days after the new text end 37.8 new text begin institution gets your completed form. new text end 37.9 new text begin If the Creditor Objects: new text end 37.10 new text begin The money you have said is protected on the form will be held by the bank. The new text end 37.11 new text begin creditor has six business days to object (disagree) and ask the court to hold a hearing. You new text end 37.12 new text begin will receive a Notice of Objection and a Notice of Hearing. new text end 37.13 new text begin The financial institution will hold the money until a court decides whether your new text end 37.14 new text begin money is protected or not. Some reasons a creditor may object are because you did not new text end 37.15 new text begin send copies of your bank statements or other proof of the benefits you received. Be sure to new text end 37.16 new text begin include these when you send your exemption form. new text end 37.17 new text begin You may want to talk to a lawyer for advice about this process. If you are low new text end 37.18 new text begin income you can call Legal Aid. new text end 37.19 new text begin PENALTIES: new text end 37.20 new text begin If you claim that your money is protected and a court decides you made that claim new text end 37.21 new text begin in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an new text end 37.22 new text begin additional amount of up to $100. For example, it may be bad faith if you claim you receive new text end 37.23 new text begin government benefits that you do not receive. new text end 37.24 new text begin If the creditor made a bad faith objection to your claim that your money is protected, new text end 37.25 new text begin the court can order them to pay costs, actual damages, attorney fees, and an additional new text end 37.26 new text begin amount of up to $100. new text end 37.27     new text begin Subd. 3. new text end new text begin Exemption notice. new text end new text begin The exemption notice must be a separate form and new text end 37.28 new text begin must be in substantially the following form: new text end 37.29 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 37.30 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 37.31 ..... new text begin (Creditor) new text end 37.32 ..... new text begin (Debtor) new text end 37.33 37.34 ..... new text begin (Financial new text end new text begin institution) new text end 37.35 new text begin EXEMPTION FORM new text end 37.36 new text begin A. new text end new text begin HOW MUCH MONEY IS PROTECTED new text end 37.37 ..... new text begin I claim ALL of the money being frozen by the bank is protected. new text end 38.1 ..... new text begin I claim SOME of the money is protected. The amount I claim is protected is $....... new text end 38.2 new text begin B. new text end new text begin WHY THE MONEY IS PROTECTED new text end 38.3 38.4 new text begin My money is protected because I get it from one or more of the following places: new text end new text begin (Check all that apply) new text end 38.5 ..... new text begin Government benefits new text end 38.6 new text begin Government benefits include, but are not limited to, the following: new text end 38.7 new text begin MFIP new text end new text begin - Minnesota family investment program, new text end 38.8 new text begin MFIP Diversionary Work Program, new text end 38.9 new text begin Work participation cash benefit, new text end new text begin new text end 38.10 new text begin GA new text end new text begin - general assistance, new text end 38.11 new text begin EA new text end new text begin - emergency assistance, new text end 38.12 new text begin MA new text end new text begin - medical assistance, new text end 38.13 new text begin GAMC new text end new text begin - general assistance medical care, new text end 38.14 new text begin EGA new text end new text begin - emergency general assistance, new text end 38.15 new text begin MSA new text end new text begin - Minnesota supplemental aid, new text end 38.16 new text begin MSA-EA new text end new text begin - MSA emergency assistance, new text end 38.17 new text begin Food Support, new text end 38.18 new text begin SSI - Supplemental Security Income, new text end 38.19 new text begin MinnesotaCare, new text end 38.20 new text begin Medicare part B premium payments, new text end 38.21 new text begin Medicare part D extra help, new text end 38.22 new text begin Energy or fuel assistance. new text end 38.23 new text begin LIST SOURCE(S) OF FUNDING IN YOUR ACCOUNT new text end 38.24 ..... 38.25 new text begin LIST THE CASE NUMBER AND COUNTY new text end 38.26 new text begin Case Number: new text end ..... 38.27 new text begin County: new text end ..... 38.28 new text begin Government benefits also include: new text end 38.29 ..... new text begin Social Security benefits new text end 38.30 ..... new text begin Unemployment benefits new text end 38.31 ..... new text begin Workers' compensation new text end 38.32 ..... new text begin Veterans benefits new text end 38.33 38.34 38.35 new text begin If you receive any of these government benefits, include copies of any new text end new text begin documents you have that show you receive Social Security, unemployment, new text end new text begin workers' compensation, or veterans benefits. new text end 38.36 ..... new text begin Other assistance based on need new text end 38.37 new text begin You may have assistance based on need from another source that is not on the list. If you new text end 38.38 new text begin do, check this box, and fill in the source of your money on the line below: new text end 38.39 new text begin Source: new text end ..... 38.40 new text begin Include copies of any documents you have that show the source of this money. new text end 39.1 new text begin EARNINGS new text end 39.2 new text begin ALL or SOME of your earnings (wages) may also be protected. new text end 39.3 ..... new text begin All of your earnings (wages) are protected if: new text end 39.4 ..... new text begin You get government benefits (see list of government benefits) new text end 39.5 ..... new text begin You currently receive other assistance based on need new text end 39.6 ..... new text begin You have received government benefits in the last six months new text end 39.7 ..... new text begin You were in jail or prison in the last six months new text end 39.8 39.9 39.10 39.11 new text begin If you check one of these lines, new text end new text begin your wages are only protected for 60 days after new text end new text begin they are deposited in your account so new text end new text begin you MUST send the creditor a copy of new text end new text begin BANK STATEMENTS new text end new text begin that show what was in your account new text end new text begin for the 60 days right new text end new text begin before the bank froze your money new text end new text begin . new text end 39.12 ..... new text begin Some of your earnings (wages) are protected. new text end 39.13 39.14 39.15 new text begin If all of your earnings are not exempt, then some of your earnings are still protected new text end new text begin for 20 days after they were deposited in your account. The amount protected is the new text end new text begin larger amount of: new text end 39.16 new text begin 75 percent of your wages (after taxes are taken out); or new text end 39.17 new text begin (insert the sum of the current federal minimum wage) multiplied by 40. new text end 39.18 new text begin OTHER EXEMPT FUNDS new text end 39.19 39.20 new text begin The money from the following are also completely protected after they are new text end new text begin deposited in your account. new text end 39.21 ..... new text begin An accident, disability, or retirement pension or annuity new text end 39.22 ..... new text begin Payments to you from a life insurance policy new text end 39.23 ..... new text begin Earnings of your child who is under 18 years of age new text end 39.24 ..... new text begin Child support new text end 39.25 39.26 39.27 39.28 ..... new text begin Money paid to you from a claim for damage or destruction of property new text end new text begin new text end new text begin Property includes household goods, farm tools or machinery, tools for your job, new text end new text begin business equipment, a mobile home, a car, a musical instrument, a pew or burial lot, new text end new text begin clothes, furniture, or appliances. new text end 39.29 ..... new text begin Death benefits paid to you new text end 39.30 new text begin I give permission to any agency that has given me cash benefits to give information new text end 39.31 new text begin about my benefits to the above-named creditor, or its attorney. The information will new text end new text begin ONLY new text end new text begin new text end 39.32 new text begin concern whether I get benefits or not, or whether I have gotten them in the past six months. new text end 39.33 new text begin If I was an inmate in the last six months, I give my permission to the correctional new text end 39.34 new text begin institution to tell the above-named creditor that I was an inmate there. new text end 39.35 new text begin YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S new text end 39.36 new text begin ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK. new text end 39.37 new text begin REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR new text end 39.38 new text begin THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE new text end 39.39 new text begin INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY. new text end 39.40 new text begin I have mailed or delivered a copy of this form to: new text end 39.41 ..... 39.42 new text begin (Insert name of creditor or creditor's attorney) new text end 40.1 ..... 40.2 new text begin (Insert address of creditor or creditor's attorney) new text end 40.3 new text begin I have also mailed or delivered a copy of this exemption form to my bank at the new text end 40.4 new text begin address listed in the instructions. new text end 40.5 new text begin DATED: new text end ..... ..... 40.6 new text begin DEBTOR new text end 40.7 ..... 40.8 new text begin DEBTOR ADDRESS new text end 40.9 ..... 40.10 new text begin DEBTOR TELEPHONE NUMBER new text end 40.11An order for attachment, garnishment summons, or levy of execution (strike 40.12inapplicable language) has been served on ............ (bank or other financial institution) 40.13............... where you have an account. 40.14Your account balance is $.................. 40.15The amount being held is $................. 40.16However, all or a portion of the funds in your account will normally be exempt from 40.17creditors' claims if they are in one of the following categories: 40.18(1) relief based on need. This includes the Minnesota Family Investment Program 40.19(MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA), 40.20General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General 40.21Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance 40.22(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance; 40.23(2) Social Security benefits (Old Age, Survivors, or Disability Insurance); 40.24(3) unemployment benefits, workers' compensation, or veterans' benefits; 40.25(4) an accident, disability, or retirement pension or annuity; 40.26(5) life insurance proceeds; 40.27(6) the earnings of your minor child and any child support paid to you; or 40.28(7) money from a claim for damage or destruction of exempt property (such as 40.29household goods, farm tools, business equipment, a mobile home, or a car). 40.30The following funds are also exempt: 40.31(8) all earnings of a person in category (1); 40.32(9) all earnings of a person who has received relief based on need, or who has been 40.33an inmate of a correctional institution, within the last six months; 40.34(10) 75 percent of every debtor's after tax earnings; and 40.35(11) all of a debtor's after tax earnings below 40 times the federal minimum wage. 40.36TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK: 40.37Categories (10) and (11): 20 days 41.1Categories (8) and (9): 60 days 41.2All others: no time limit, as long as funds are traceable to the exempt source. (In 41.3tracing funds, the first-in, first-out method is used. This means money deposited first is 41.4spent first.) The money being sought by the creditor is being held in your account to 41.5give you a chance to claim an exemption. 41.6TO CLAIM AN EXEMPTION: 41.7Fill out, sign, and mail or deliver one copy of the attached exemption claim form to 41.8the institution which sent you this notice and mail or deliver one copy to the creditor's 41.9attorney. In the event that there is no attorney for the creditor, then such notice shall be 41.10sent directly to the creditor. The address for the creditor's attorney or the creditor is set 41.11forth below. Both copies must be mailed or delivered on the same day. 41.12NOTE: You may help resolve your claim faster if you send to the creditor's 41.13attorney written proof or documents that show why your money is exempt. If 41.14you have questions regarding the documents to send as proof of an exemption, 41.15call the creditor's attorney. If you do not send written proof and the creditor's 41.16attorney has questions about your exemption claim, the creditor's attorney 41.17may object to your claim which may result in a further delay in releasing your 41.18exempt funds. 41.19If they do not get the exemption claim back from you within 14 days of the date 41.20they mailed or gave it to you, they will be free to turn the money over to the sheriff or 41.21the creditor. If you are going to claim an exemption, do so as soon as possible, because 41.22your money may be held until it is decided. 41.23IF YOU CLAIM AN EXEMPTION: 41.24(1) nonexempt money can be turned over to the creditor or sheriff; 41.25(2) the financial institution will keep holding the money claimed to be exempt; and 41.26(3) seven days after receiving your exemption claim, the financial institution will 41.27release the money to you unless before then it receives an objection to your exemption 41.28claim. 41.29IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 41.30The institution will hold the money until a court decides if your exemption claim is 41.31valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting 41.32the exemption WITHIN TEN DAYS after the objection is personally served on you, or 41.33within 13 days from the date the objection is mailed to you. You may wish to consult an 41.34attorney at once if the creditor objects to your exemption claim. 41.35MOTION TO DETERMINE EXEMPTION: 42.1At any time after your funds have been held, you may ask for a court decision on the 42.2validity of your exemption claim by filing a request for hearing which may be obtained 42.3at the office of the court administrator of the above court. 42.4PENALTIES: 42.5If you claim an exemption in bad faith, or if the creditor wrongly objects to an 42.6exemption in bad faith, the court may order the person who acted in bad faith to pay costs, 42.7actual damages, attorney fees, and an additional amount of up to $100. 42.8 ..... 42.9 ..... 42.10 ..... 42.11 ..... 42.12 42.13 Name and address of (Attorney for) Judgment Creditor 42.14EXEMPTION: 42.15(If you claim an exemption complete the following): 42.16(a) Amount of exemption claim. 42.17/ / I claim ALL the funds being held are exempt. 42.18/ / I claim SOME of the funds being held are exempt. 42.19 The exempt amount is $............ 42.20(b) Basis for exemption. 42.21Of the eleven categories listed above, I am in category number ............ (If more 42.22than one category applies, you may fill in as many as apply.) The source of the exempt 42.23funds is the following: 42.24 ..... 42.25 ..... 42.26 ..... 42.27(If the source is a type of relief based on need, list the case number and county: 42.28case number: ...............; 42.29county: ....................) 42.30I hereby authorize any agency that has distributed relief to me or any correctional 42.31institution in which I was an inmate to disclose to the above named creditor or its attorney 42.32only whether or not I am or have been a recipient of relief based on need or an inmate of a 42.33correctional institute within the last six months. 42.34I have mailed or delivered a copy of the exemption notice to the creditor's attorney 42.35at the address indicated above. 43.1 43.2 DATED: ..... ..... DEBTOR 43.3 43.4 ..... DEBTOR ADDRESS 43.5 43.6 ..... DEBTOR TELEPHONE NUMBER 43.7    Sec. 9. Minnesota Statutes 2008, section 571.913, is amended to read: 43.8571.913 EFFECT OF EXEMPTION NOTICE. 43.9Within two business days after receipt of the garnishment summons and new text begin , the notice, new text end 43.10 new text begin instructions, and two copies of the new text end exemption notices new text begin notice new text end , the financial institution 43.11shall serve upon the debtor new text begin the notice, instructions, and new text end two copies of the exemption 43.12notice. The financial institution shall serve the notice new text begin these forms new text end by first class mail to the 43.13last known address of the debtor. If no claim of exemption is received by the financial 43.14institution within 14 days after the exemption notices are mailed to the debtor, the funds 43.15remain subject to the garnishment summons. If the debtor elects to claim an exemption, 43.16the debtor shall complete the exemption notice new text begin notices new text end , sign it new text begin them new text end under penalty of 43.17perjury, and deliver one copy to the financial institution and one copy to the attorney for 43.18the creditor within 14 days of the date postmarked on the correspondence mailed to the 43.19debtor containing the exemption notices. new text begin The debtor is also required to include copies of new text end 43.20 new text begin bank statements for the prior 60 days with the exemption notice delivered to the attorney new text end 43.21 new text begin for the creditor. new text end In the event that there is no attorney for the creditor, then the notice new text begin and new text end 43.22 new text begin the bank statements new text end must be sent directly to the creditor. Failure of the debtor to deliver 43.23the executed exemption notice new text begin or copies of the required bank statements for the prior 60 new text end 43.24 new text begin days new text end does not constitute a waiver of a claimed right to an exemption. Upon timely receipt 43.25of a claim of exemption, funds not claimed to be exempt by the debtor remain subject 43.26to the garnishment summons. All money claimed to be exempt shall be released to the 43.27debtor upon the expiration of seven new text begin six business new text end days after the date postmarked on the 43.28envelope containing the executed exemption notice mailed to the financial institution, or 43.29the date of personal delivery of the executed exemption notice to the financial institution, 43.30unless within that time the creditor interposes an objection to the exemption. 43.31    Sec. 10. Minnesota Statutes 2008, section 571.914, is amended to read: 43.32571.914 OBJECTION TO EXEMPTION CLAIM. 43.33    Subdivision 1. Objections new text begin and request for hearing new text end . An objection shall be 43.34interposed new text begin , within six business days of receipt by the creditor of an exemption claim from new text end 43.35 new text begin the debtor, new text end by mailing or delivering one copy of the written objection new text begin Notice of Objection new text end 44.1 new text begin and Notice of Hearing new text end to the financial institution and one copy of the written objection 44.2 new text begin Notice of Objection and Notice of Hearing new text end to the debtor. A Request for Hearing and 44.3Notice of Hearing form must accompany each copy of the written objection. 44.4Both copies of an objection to an exemption claim must be mailed or delivered on 44.5the same date. The financial institution may rely on the date of mailing or delivery of a 44.6notice to it in computing any time periods in this section. 44.7The written objection, and Request for Hearing new text begin Notice of Objection new text end and Notice of 44.8Hearing, new text begin form new text end must be substantially in the forms new text begin form new text end set out in subdivisions new text begin subdivision new text end 44.92 and 3. 44.10The court shall provide clerical assistance to help with the writing and filing of a 44.11Request for Hearing by any person not represented by counsel. The court administrator 44.12may charge a fee of $1 for the filing of a Request for new text begin Notice of Objection and Notice of new text end 44.13Hearing. Upon the filing of a Request for new text begin Notice of Objection and Notice of new text end Hearing, the 44.14court administrator shall schedule the matter for hearing new text begin no sooner than five business days new text end 44.15 new text begin but new text end no later than five new text begin seven new text end business days from the date of filing. The court administrator 44.16shall immediately send a completed copy of the request, including the hearing date, time, 44.17and place to the adverse party and to the financial institution by first class mail. new text begin A debtor new text end 44.18 new text begin may request continuance of the hearing by notifying the creditor and the court. The court new text end 44.19 new text begin shall schedule the continued hearing within seven days of the original hearing date. new text end 44.20An order stating whether the debtor's funds are exempt shall be issued by the court 44.21within three days of the date of the hearing. 44.22    Subd. 2. new text begin Form of new text end notice of objection new text begin and notice of hearing new text end . (a) The written 44.23objection to the debtor new text begin Written Objection and Notice of Hearing new text end must be in substantially 44.24the following form: 44.25 STATE OF MINNESOTA DISTRICT COURT 44.26 COUNTY OF ..... ..... JUDICIAL DISTRICT 44.27 ..... (Creditor) 44.28 44.29 ..... (Debtor) CREDITOR'S new text begin NOTICE OF new text end OBJECTION 44.30 44.31 ..... (Garnishee) TO new text begin AND NOTICE OF HEARING new text end new text begin ON new text end EXEMPTION CLAIM 44.32 ..... 44.33 ..... 44.34 ..... 44.35 44.36 new text begin (CREDITOR OR CREDITOR'S new text end new text begin ATTORNEY) new text end 44.37 ..... 44.38 new text begin NOTICE OF HEARING new text end 45.1 45.2 45.3 new text begin The creditor objects to your exemption new text end new text begin claim. This hearing is to resolve your new text end new text begin exemption claim. new text end 45.4 new text begin Hearing Date: new text end ..... 45.5 new text begin Time: new text end ..... 45.6 new text begin Hearing Place: new text end ..... 45.7The creditor objects to your claim for new text begin of new text end exemption from garnishment, levy of 45.8execution, order for attachment (strike inapplicable language) for the following reason(s): 45.9 ..... 45.10 ..... 45.11 ..... 45.12 new text begin (Note: Bring with you to the hearing all documents and materials supporting new text end 45.13 new text begin your exemption claim. new text end new text begin Failure to do so could delay the court's decision.) new text end 45.14 new text begin If the creditor receives all documents and materials supporting your exemption new text end 45.15 new text begin claim before the hearing date, the creditor may agree with your claim and you can avoid new text end 45.16 new text begin a hearing. new text end 45.17Because of this objection, new text begin a court hearing will be held on your claim that your funds new text end 45.18 new text begin are protected, new text end your financial institution will retain the funds you claimed to be exempt 45.19for an additional ten days. If you wish to request a hearing on your exemption claim, 45.20you need to do so within ten days from the date the objection was personally served on 45.21you, or within 13 days of the date the objection was mailed to you. You may request a 45.22hearing by completing the attached form and filing it with the court administrator new text begin until it new text end 45.23 new text begin receives an order from the court new text end . 45.241. The court shall provide clerical assistance to help with the writing and filing of a 45.25Request for Hearing by any person not represented by counsel. The court administrator 45.26may charge a fee of $1 for the filing of a Request for Hearing. 45.272. Upon the filing of a Request for Hearing, the clerk shall schedule the matter for a 45.28hearing no later than five business days from the date of filing. The court administrator 45.29shall forthwith send a completed copy of the request, including the hearing date, time, and 45.30place to the adverse party and to the financial institution by first class mail. 45.313. If it is possible that the financial institution might not receive the request mailed 45.32from the court administrator within ten days, then you may want to personally deliver a 45.33copy of the request to the financial institution after you have filed your request with the 45.34court. 45.354. An order stating whether your funds are exempt shall be issued by the court 45.36within three days of the date of the hearing. 46.1If you do not file a Request for Hearing within ten days of the date the objection was 46.2personally served on you, or within 13 days from the date the objection was mailed to you, 46.3your financial institution may turn your funds over to your creditor. 46.4If you file a Request for Hearing and your financial institution receives it within ten 46.5days of the date it received this objection, your financial institution will retain your funds 46.6claimed to be exempt until otherwise ordered by the court, or until the garnishment lapses 46.7pursuant to Minnesota Statutes, section . 46.8 ..... 46.9 (CREDITOR OR CREDITOR'S ATTORNEY.) 46.10    Subd. 3. Request for hearing and notice for hearing. The request for hearing 46.11accompanying the objection notice must be in substantially the following form: 46.12 STATE OF MINNESOTA DISTRICT COURT 46.13 COUNTY OF ..... ..... JUDICIAL DISTRICT 46.14 ..... (Creditor) 46.15 46.16 ..... (Debtor) REQUEST FOR HEARING AND NOTICE FOR HEARING 46.17 ..... (Garnishee) 46.18I hereby request a hearing to resolve the exemption claim which has been made in 46.19this case regarding funds in the account of ............. (Debtor) at the ......... (Financial 46.20Institution). 46.21    I believe the property being held is exempt because 46.22 ..... 46.23 ..... 46.24 Dated: ..... 46.25 46.26 (DEBTOR) ..... 46.27 46.28 (ADDRESS) ..... 46.29 HEARING DATE: ..... TIME: ..... 46.30 HEARING PLACE: ..... 46.31(Note to both parties: Bring with you to the hearing all documents and materials 46.32relevant to the exemption claim. Failure to do so could delay the court's decision.) 46.33    Subd. 4. Duties of financial institution if objection is made to exemption claim. 46.34Upon receipt of a written objection new text begin Notice of Objection and Notice of Hearing new text end from the 46.35creditor within the specified seven-day period, the financial institution shall retain the 46.36funds claimed to be exempt. Unless the financial institution receives a request for hearing 46.37from the debtor asserting exemption rights within ten days after receipt of the written 46.38objection to the exemption, the funds remain subject to the garnishment summons as if 47.1no claim of exemption had been made. If a notice of motion and motion to determine 47.2the validity of a claim of exemption is received by the financial institution within the 47.3period provided, The financial institution shall retain the funds claimed to be exempt 47.4until otherwise ordered by the court, new text begin upon mutual agreement of the parties, new text end or until the 47.5garnishment lapses pursuant to section 571.79. 47.6    Sec. 11. Minnesota Statutes 2008, section 571.925, is amended to read: 47.7571.925 FORM OF NOTICE. 47.8The ten-day notice informing a debtor that a garnishment summons may be used to 47.9garnish the earnings of an individual must be substantially in the following form: 47.10 STATE OF MINNESOTA DISTRICT COURT 47.11 COUNTY OF ..... ..... JUDICIAL DISTRICT 47.12 47.13 ..... (Creditor) against 47.14 GARNISHMENT EXEMPTION 47.15 ..... (Debtor) NOTICE AND NOTICE OF 47.16 and INTENT TO GARNISH EARNINGS 47.17 ..... (Garnishee) 47.18PLEASE TAKE NOTICE that a garnishment summons or levy may be served upon 47.19your employer or other third parties, without any further court proceedings or notice to 47.20you, ten days or more from the date hereof. Some or all of your earnings are exempt 47.21from garnishment. If your earnings are garnished, your employer must show you how 47.22the amount that is garnished from your earnings was calculated. You have the right to 47.23request a hearing if you claim the garnishment is incorrect. 47.24Your earnings are completely exempt from garnishment if you are now a recipient of 47.25relief new text begin assistance new text end based on need, if you have been a recipient of relief new text begin assistance based on new text end 47.26 new text begin need new text end within the last six months, or if you have been an inmate of a correctional institution 47.27in the last six months. 47.28Relief based on need includes the Minnesota Family Investment Program (MFIP), 47.29Emergency Assistance (EA), Work First Program, Medical Assistance (MA), General 47.30Assistance (GA), General Assistance Medical Care (GAMC), Emergency General 47.31Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance 47.32(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance. 47.33 new text begin Assistance based on need includes, but is not limited to: new text end 47.34 new text begin MFIP new text end new text begin - Minnesota family investment program, new text end 47.35 new text begin MFIP Diversionary Work Program, new text end 47.36 new text begin Work participation cash benefit, new text end 48.1 new text begin GA new text end new text begin - general assistance, new text end 48.2 new text begin EA new text end new text begin - emergency assistance, new text end 48.3 new text begin MA new text end new text begin - medical assistance, new text end 48.4 new text begin GAMC new text end new text begin - general assistance medical care, new text end 48.5 new text begin EGA new text end new text begin - emergency general assistance, new text end 48.6 new text begin MSA new text end new text begin - Minnesota supplemental aid, new text end 48.7 new text begin MSA-EA new text end new text begin - MSA emergency assistance, new text end 48.8 new text begin Food Support, new text end 48.9 new text begin SSI - Supplemental Security Income, new text end 48.10 new text begin MinnesotaCare, new text end 48.11 new text begin Medicare part B premium payments, new text end 48.12 new text begin Medicare part D extra help, new text end 48.13 new text begin Energy or fuel assistance. new text end 48.14If you wish to claim an exemption, you should fill out the appropriate form below, 48.15sign it, and send it to the creditor's attorney and the garnishee. 48.16You may wish to contact the attorney for the creditor in order to arrange for a 48.17settlement of the debt or contact an attorney to advise you about exemptions or other rights. 48.18PENALTIES 48.19(1) Be advised that even if you claim an exemption, a garnishment summons may 48.20still be served on your employer. If your earnings are garnished after you claim an 48.21exemption, you may petition the court for a determination of your exemption. If the 48.22court finds that the creditor disregarded your claim of exemption in bad faith, you 48.23will be entitled to costs, reasonable attorney fees, actual damages, and an amount 48.24not to exceed $100. 48.25(2) HOWEVER, BE WARNED if you claim an exemption, the creditor can also 48.26petition the court for a determination of your exemption, and if the court finds that 48.27you claimed an exemption in bad faith, you will be assessed costs and reasonable 48.28attorney's fees plus an amount not to exceed $100. 48.29(3) If after receipt of this notice, you in bad faith take action to frustrate the 48.30garnishment, thus requiring the creditor to petition the court to resolve the problem, 48.31you will be liable to the creditor for costs and reasonable attorney's fees plus an 48.32amount not to exceed $100. 48.33 48.34 Dated: ..... ..... (Attorney for) Creditor 48.35 48.36 ..... Address 48.37 48.38 ..... Telephone 48.39DEBTOR'S EXEMPTION CLAIM NOTICE 49.1I hereby claim that my earnings are exempt from garnishment because: 49.2(1) I am presently a recipient of relief based on need. (Specify the program, case 49.3number, and the county from which relief is being received.) 49.4 49.5 49.6 ..... Program ..... Case Number (if known) ..... County 49.7(2) I am not now receiving relief based on need, but I have received relief based on 49.8need within the last six months. (Specify the program, case number, and the county 49.9from which relief has been received.) 49.10 49.11 49.12 ..... Program ..... Case Number (if known) ..... County 49.13(3) I have been an inmate of a correctional institution within the last six months. 49.14(Specify the correctional institution and location.) 49.15 49.16 ..... Correctional Institution ..... Location 49.17I hereby authorize any agency that has distributed relief to me or any correctional 49.18institution in which I was an inmate to disclose to the above-named creditor or the 49.19creditor's attorney only whether or not I am or have been a recipient of relief based on 49.20need or an inmate of a correctional institution within the last six months. I have mailed or 49.21delivered a copy of this form to the creditor or creditor's attorney. 49.22 49.23 ..... Date ..... Debtor 49.24 49.25 ..... Address 49.26 49.27 ..... Debtor Telephone Number 49.28 new text begin STATE OF MINNESOTA new text end new text begin DISTRICT COURT new text end 49.29 new text begin COUNTY OF new text end ..... ..... new text begin JUDICIAL DISTRICT new text end 49.30 ..... new text begin (Creditor) new text end 49.31 ..... new text begin (Debtor) new text end 49.32 49.33 ..... new text begin (Financial new text end new text begin institution) new text end