Minnesota Legislature
HF 334
1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:27pm
KEY: stricken = removed, old language.
underscored = added, new language.
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 section550.135 .
1.12 Subd. 2. Disclosure form. Along with the writ of execution, the notice, instructions,
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:
1.23On 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
2.28I, ....................... (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.
3.3 Subd. 3. Notice, instructions, and 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
3.6a notice, instructions, and two copies of an exemption notice, which must be substantially
3.7in the form set forth below. The sheriff shall serve the notice, instructions, and both copies
3.8of the exemption notice on the financial institution, along with the writ of execution.
3.9Failure of the sheriff to serve the notice, instructions, and 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
3.12section571.71 , 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, notice, instructions, and
3.15exemption notices, the financial institution shall retain as much of the amount due under
3.16section550.04 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.
3.24An 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.
5.29EXEMPTION:
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.
5.34(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:
6.4(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.
6.21 Subd. 3a. Form of notice. The notice required by subdivision 3 must be provided as
6.22a separate form and must be substantially in the following form:
6.31The Creditor has frozen money in your account at your financial institution.
6.32Your account balance is $.......
6.33The amount being held is $.......
6.34The amount being held will be frozen for 14 days from the date of this notice.
6.35Some of your money in your account may be protected (the legal word is
6.36exempt). You may be able to get it sooner than 14 days if you act quickly and follow
6.37the instructions on the next page.
7.1The attached exemption form lists some different sources of money in your account
7.2that may be protected. If your money is from one or more of these sources, place a
7.3check on the line on the form next to the sources of your money. If it is from one of
7.4these sources, the Creditor cannot take it.
7.5BUT, you must follow the instructions and return the exemption form and
7.6copies of your bank statements from the last 60 days to have the bank unfreeze your
7.7money. If you do not follow the instructions, your financial institution will give the money
7.8to the Sheriff. If that happens and it is protected, you can still get it back from the Creditor
7.9later, but that is not as easy to do as filling in the form now.
7.11 Subd. 3b. Form of instructions. The instructions required by this section must be
7.12in a separate form and must be substantially in the following form:
7.14Note: The creditor is who you owe the money to. You are the debtor.
7.151. Fill out both of the attached exemption forms in this packet.
7.16If you check one of the lines, you should also give proof that shows that some
7.17or all of the money in your account is from one or more of the protected sources.
7.18Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
7.19Case numbers should be added to the form. Copies of documents should be
7.20sent with the form.
7.21NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
7.22THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
7.23FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
7.24statements in case there are questions about your claim. If you do not send to the
7.25creditor's attorney (or to the creditor, if no attorney) bank statements with your
7.26exemption claim, the financial institution may release your money to the sheriff.
7.272. Sign the exemption forms. Make one copy to keep for yourself.
7.283. Mail or deliver the other copies of the form by (insert date).
7.29BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
7.30One copy of the form and the copies of your bank statements go to:
7.35One copy goes to:
8.6If You Do Not Send in the Exemption Form and Bank Statements:
8.714 days after the date of this letter some or all of your money may be turned over
8.8to the creditor or to the sheriff.
8.9If You Send in the Exemption Form and Bank Statements:
8.10Any money that is NOT protected can be turned over to the sheriff.
8.11If the Creditor Does Not Object:
8.12The financial institution will unfreeze your money six business days after the
8.13institution gets your completed form.
8.14If the Creditor Objects:
8.15The money you have said is protected on the form will be held by the bank. The
8.16creditor has six business days to object (disagree) and ask the court to hold a hearing. You
8.17will receive a Notice of Objection and a Notice of Hearing.
8.18The financial institution will hold the money until a court decides whether your
8.19money is protected or not. Some reasons a creditor may object are because you did not
8.20send copies of your bank statements or other proof of the benefits you received. Be sure to
8.21include these when you send your exemption form.
8.22You may want to talk to a lawyer for advice about this process. If you are low
8.23income you can call Legal Aid.
8.24PENALTIES:
8.25If you claim that your money is protected and a court decides you made that claim
8.26in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
8.27additional amount of up to $100. For example, it may be bad faith if you claim you receive
8.28government benefits that you do not receive.
8.29If the creditor made a bad faith objection to your claim that your money is protected,
8.30the court can order them to pay costs, actual damages, attorney fees, and an additional
8.31amount of up to $100.
8.32 Subd. 3c. Form of exemption form. The exemption form required by this
8.33subdivision must be sent as a separate form and must be in substantially the following
8.34form:
10.1You may have assistance based on need from another source that is not on the list. If you
10.2do, check this box, and fill in the source of your money on the line below:
10.3Source:
..... 10.4Include copies of any documents you have that show the source of this money.
10.34I give permission to any agency that has given me cash benefits to give information
10.35about my benefits to the above-named creditor, or its attorney. The information will ONLY
10.36concern whether I get benefits or not, or whether I have gotten them in the past six months.
10.37If I was an inmate in the last six months, I give my permission to the correctional
10.38institution to tell the above-named creditor that I was an inmate there.
10.39YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
10.40ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
10.41REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
11.1THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
11.2INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
11.3I have mailed or delivered a copy of this form to:
11.8I have also mailed or delivered a copy of this exemption form to my bank at the
11.9address listed in the instructions.
11.16 Subd. 4. Effect of exemption notice. Within two business days after receipt of the
11.17writ of executionand, notice, instructions, and two copies of the exemption notices notice,
11.18the financial institution shall serve upon the judgment debtor the notice, instructions,
11.19and two copies of the exemption notice. The financial institution shall servethe notice
11.20these forms 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 notice,
11.22instructions, and exemption notices are mailed to the judgment debtor, the funds remain
11.23subject to the execution levy and shall be remitted to the sheriff withinseven six business
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. The judgment debtor is also required to include copies of bank
11.29statements for the prior 60 days with the exemption notice delivered to the attorney for the
11.30judgment creditor. In the event that there is no attorney for the judgment creditor, then the
11.31notice and bank statements must be sent directly to the judgment creditor. Failure of the
11.32judgment debtor to deliver the executed exemption notice or copies of the required bank
11.33statements for the prior 60 days 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 ofseven six business 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. Objectionto exemption claim and request for hearing. (a) An objection
12.5shall be interposed within six business days of receipt by the creditor of an exemption
12.6claim from the debtor, by mailing or delivering one copy of thewritten objection Notice of
12.7Objection and Notice of Hearing to the financial institution and one copy of thewritten
12.8objection Notice of Objection and Notice of Hearing 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. Thewritten objection Notice of Objection and Notice of Hearing must be
12.13substantially in the form specified in subdivision 7.
12.14(b) The court administrator may charge a fee of $1 for the filing of a Notice of
12.15Objection and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of
12.16Hearing, the court administrator shall schedule the matter for hearing no sooner than five
12.17business days but no later than seven business days from the date of filing. A debtor may
12.18request continuance of the hearing by notifying the creditor and the court. The court shall
12.19schedule the continued hearing within seven days of the original hearing date.
12.20(c) An order stating whether the debtor's funds are exempt must be issued by the
12.21court within three days of the date of the hearing.
12.22 Subd. 6. Duties of financial institution if objection is made to exemption claim.
12.23Upon receipt of awritten objection Notice of Objection and Notice of Hearing from
12.24thejudgment creditor or its attorney within the specified seven-day six-day 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 The financial institution shall
12.32retain the funds claimed to be exempt until otherwise ordered by the court or upon mutual
12.33agreement of the parties.
12.34 Subd. 7. Form of Notice of Objection and Notice of Hearing. (a) Thewritten
12.35objection to the judgment debtor's claim of exemption Written Objection and Notice of
12.36Hearing must be in substantially the following form:
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.
14.32The creditor objects to your claim of exemption from levy of execution for the
14.33following reason(s):
14.37(Note: Bring with you to the hearing all documents and materials supporting
14.38your exemption claim. Failure to do so could delay the court's decision.)
14.39If the creditor receives all documents and materials supporting your exemption
14.40claim before the hearing date, the creditor may agree with your exemption claim and
14.41you might still be able to avoid a hearing.
15.1Because a court hearing will be held on your claim that your funds are protected,
15.2your financial institution will retain the funds until it receives an order from the court or
15.3upon mutual agreement between you and your creditor.
15.4Subd. 8. Request for hearing and notice for hearing. The request for hearing
15.5accompanying the objection notice must be in substantially the following form:
15.12I 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).
15.15I believe the property being held is exempt because
..... 15.16
..... 15.17
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 or the financial institution to release the funds in
15.33question to the other party. Upon receipt of a release, the sheriff or the financial institution
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. Allrelief government assistance based on need,
16.18and the earnings or salary of a person who is a recipient ofrelief government assistance
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 government assistance based on need includes MFIP, work first, general
16.22assistance medical care, supplemental security income, medical assistance, Minnesota
16.23supplemental assistance, and general assistance but is not limited to Minnesota family
16.24investment program, general assistance medical care, Supplemental Security Income,
16.25medical assistance, MinnesotaCare, payment of Medicare part B premiums or receipt of
16.26part D extra help, MFIP diversionary work program, work participation cash benefit,
16.27Minnesota supplemental assistance, emergency Minnesota supplemental assistance,
16.28general assistance, emergency general assistance, emergency assistance or county crisis
16.29funds, energy or fuel assistance, and food support. The salary or earnings of any debtor
16.30who is or has been an eligible recipient ofrelief government assistance 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 ofrelief government assistance 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 distributingrelief government assistance and
17.5the correctional institutions shall, at the request of creditors, inform them whether or not
17.6any debtor has been an eligible recipient ofrelief government assistance 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
17.13section551.04 .
17.14 Subd. 1a. Notice, instructions, and 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 a notice, instructions, and two
17.18copies of an exemption notice. The notice, instructions, and exemption notice must be
17.19substantially in the form set forth below. Failure of the attorney for the judgment creditor
17.20to sendthe exemption notice these forms 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 section571.71 , 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 section550.04 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 Subd. 1b. Form of notice. The noticeinforming a judgment debtor that an
17.30execution levy has been used to attach funds of the judgment debtor to satisfy a claim
17.31must be a separate form and must be substantially in the following form:
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.
20.7EXEMPTION:
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.
20.12(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.
21.7The Creditor has frozen money in your account at your financial institution.
21.8Your account balance is $.......
21.9The amount being held is $.......
21.10The amount being held will be frozen for 14 days from the date of this notice.
21.11Some of your money in your account may be protected (the legal word is
21.12exempt). You may be able to get it sooner than 14 days if you act quickly and follow
21.13the instructions on the next page.
21.14The attached exemption form lists some different sources of money in your account
21.15that may be protected. If your money is from one or more of these sources, place a
21.16check on the line on the form next to the sources of your money. If it is from one of
21.17these sources, the Creditor cannot take it.
21.18BUT, you must follow the instructions and return the exemption form and
21.19copies of your bank statements from the last 60 days to have the bank unfreeze your
21.20money. If you do not follow the instructions, your financial institution will give the money
21.21to the Creditor. If that happens and it is protected, you can still get it back from the
21.22Creditor later, but that is not as easy to do as filling in the form now.
21.24 Subd. 1c. Form of instructions. The instructions required must be in a separate
21.25form and must be substantially in the following form:
21.27Note: The creditor is who you owe the money to. You are the debtor.
21.281. Fill out both of the attached exemption forms in this packet.
21.29If you check one of the lines, you should also give proof that shows that some
21.30or all of the money in your account is from one or more of the protected sources.
21.31Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
21.32Case numbers should be added to the form. Copies of documents should be
21.33sent with the form.
21.34NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
21.35THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
21.36FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
21.37statements in case there are questions about your claim. If you do not send to the
22.1creditor's attorney (or to the creditor, if no attorney) bank statements with your
22.2exemption claim, the financial institution may release your money to the creditor.
22.32. Sign the exemption forms. Make one copy to keep for yourself.
22.43. Mail or deliver the other copies of the form by (insert date).
22.5BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
22.6One copy of the form and the copies of your bank statements go to:
22.11One copy goes to:
22.17If You Do Not Send in the Exemption Form and Bank Statements:
22.1814 days after the date of this letter some or all of your money may be turned over to
22.19the creditor pursuant to Minnesota statute.
22.20If You Send in the Exemption Form and Bank Statements:
22.21Any money that is NOT protected can be turned over to the creditor.
22.22If the Creditor Does Not Object:
22.23The financial institution will unfreeze your money six business days after the
22.24institution gets your completed form.
22.25If the Creditor Objects:
22.26The money you have said is protected on the form will be held by the bank. The
22.27creditor has six business days to object (disagree) and ask the court to hold a hearing. You
22.28will receive a Notice of Objection and a Notice of Hearing.
22.29The financial institution will hold the money until a court decides whether your
22.30money is protected or not. Some reasons a creditor may object are because you did not
22.31send copies of your bank statements or other proof of the benefits you received. Be sure to
22.32include these when you send your exemption form.
22.33You may want to talk to a lawyer for advice about this process. If you are low
22.34income you can call Legal Aid.
22.35PENALTIES:
22.36If you claim that your money is protected and a court decides you made that claim
22.37in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
23.1additional amount of up to $100. For example, it may be bad faith if you claim you receive
23.2government benefits that you do not receive.
23.3If the creditor made a bad faith objection to your claim that your money is protected,
23.4the court can order them to pay costs, actual damages, attorney fees, and an additional
23.5amount of up to $100.
23.6 Subd. 1d. Form of exemption form. The exemption form required by this
23.7subdivision must be a separate form and must be in substantially the following form:
24.12You may have assistance based on need from another source that is not on the list. If you
24.13do, check this box, and fill in the source of your money on the line below:
24.14Source:
..... 24.15Include copies of any documents you have that show the source of this money.
25.1I give permission to any agency that has given me cash benefits to give information
25.2about my benefits to the above-named creditor, or its attorney. The information will ONLY
25.3concern whether I get benefits or not, or whether I have gotten them in the past six months.
25.4If I was an inmate in the last six months, I give my permission to the correctional
25.5institution to tell the above-named creditor that I was an inmate there.
25.6YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
25.7ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
25.8REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
25.9THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
25.10INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
25.11I have mailed or delivered a copy of this form to:
25.16I have also mailed or delivered a copy of this exemption form to my bank at the
25.17address listed in the instructions.
25.24 Subd. 2. Effect of exemption notice. Within two business days after receipt of the
25.25execution levy and the notice, instructions, and two copies of the exemption notices, the
25.26financial institution shall serve upon the judgment debtor the notice, instructions, and 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 withinseven six business 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. The debtor is also required to include copies of bank statements for
25.37the prior 60 days with the exemption notice. In the event that there is no attorney for the
26.1judgment creditor, the notice must be sent directly to the judgment creditor. Failure of the
26.2judgment debtor to deliver the executed exemption notice or copies of the required bank
26.3statements for the prior 60 days 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 ofseven six business
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 Objections and request for hearing.
26.12An objection shall be interposed, within six business days of receipt by the creditor of
26.13an exemption claim from the debtor, by mailing or delivering one copy of thewritten
26.14objection Notice of Objection and Notice of Hearing to the financial institution and one
26.15copy of thewritten objection Notice of Objection and Notice of Hearing to the judgment
26.16debtoralong 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. Thewritten objection Notice of Objection and
26.20Notice of Hearing form must be substantially in the formspecified set out in subdivision 5.
26.21The court administrator may charge a fee of $1 for the filing of a Notice of Objection
26.22and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing,
26.23the court administrator shall schedule the matter for hearing no sooner than five business
26.24days but no later than seven business days from the date of filing. A debtor may request
26.25continuance of the hearing by notifying the creditor and the court. The court shall schedule
26.26the continued hearing within seven days of the original hearing date.
26.27An order stating whether the debtor's funds are exempt shall be issued by the court
26.28within three days of the date of the hearing.
26.29 Subd. 4. Duties of financial institution if objection is made to exemption claim.
26.30Upon receipt of awritten objection Notice of Objection and Notice of Hearing from the
26.31judgment creditor within the specified seven-day six-day 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. The financial institution shall retain the funds
27.4claimed to be exempt until otherwise ordered by the court, upon mutual agreement of the
27.5parties, or until the garnishment lapses pursuant to subdivision 7.
27.6 Subd. 5. Form of Notice of Objection and Notice of Hearing.(a) The written
27.7objection to the judgment debtor's claim of exemption must be in substantially the
27.8following form:
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.
28.11(a) The Written Objection and Notice of Hearing must be in substantially the
28.12following form:
29.1The creditor objects to your claim of exemption from levy of execution for the
29.2following reason(s):
29.6(Note: Bring with you to the hearing all documents and materials supporting
29.7your exemption claim. Failure to do so could delay the court's decision.)
29.8If the creditor receives all documents and materials supporting your exemption
29.9claim before the hearing date, the creditor may agree with your exemption claim and you
29.10might be able to avoid a hearing.
29.11Because a court hearing will be held on your claim that your funds are protected,
29.12your financial institution will retain the funds until it receives an order from the court or
29.13upon mutual agreement between you and the creditor.
29.14Subd. 6. Request for hearing and notice for hearing. The request for hearing
29.15accompanying the objection notice must be in substantially the following form:
29.23I 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
29.36(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 section571.93 ;
30.32(2) at any time40 45 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. Garnishment under this clause is effective only after the Notice of Intent
31.1to Garnish form in section 571.72, subdivision 11, and the Exemption form in section
31.2571.72, subdivision 10, are served on the debtor at any time 20 or more days after the
31.3service of the Summons and Complaint and, in addition, the creditor does not receive an
31.4Answer from the debtor within 25 days after service of the Notice of Intent to Garnish.
31.5The Notice of Intent to Garnish form and the Exemption form must be substantially in the
31.6form set forth in section 571.72, subdivisions 10 and 11. If a creditor sends a Notice of
31.7Intent to Garnish form to a debtor under this clause, the creditor cannot obtain a default
31.8judgment against the debtor under rule 55.01(a) of the Minnesota Rules of Civil Procedure
31.9for the District Court until 25 days after the service of the Notice of Intent to Garnish
31.10form. 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 section571.72, 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 Subd. 10. Exemption notice for prejudgment garnishment.
31.18IMPORTANT NOTICE: A garnishment summons may be served on your
31.19employer, bank, or other third parties without any further court proceeding or notice
31.20to you. See the attached Notice of Intent to Garnish for more information.
31.21The following money and wages may be protected (the legal word is exempt)
31.22from garnishment:
31.231. Financial institutions/bank
31.24Some of the money in your account may be protected because you receive
31.25government benefits from one or more of the following places:
31.26MFIP - Minnesota family investment program,
31.27MFIP Diversionary Work Program,
31.28Work participation cash benefit,
31.29GA - general assistance,
31.30EA - emergency assistance,
31.31MA - medical assistance,
31.32GAMC - general assistance medical care,
31.33EGA - emergency general assistance or county crisis funds,
31.34MSA - Minnesota supplemental aid,
31.35MSA-EA - MSA emergency assistance,
32.1Food Support,
32.2SSI - Supplemental Security Income,
32.3MinnesotaCare,
32.4Medicare part B premium payments,
32.5Medicare part D extra help,
32.6Energy or fuel assistance,
32.7Social Security benefits,
32.8Unemployment benefits,
32.9Workers' compensation,
32.10Veterans benefits.
32.11Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK
32.12STATEMENTS that show what was in your account for the past 60 days may give
32.13the creditor enough information about your exemption claim to avoid a garnishment.
32.142. Earnings
32.15All or some of your earnings may be completely protected from garnishment if:
32.16All of your earnings (wages) may be protected if:
32.17You get government benefits (see list of government benefits)
32.18You currently receive other assistance based on need
32.19You have received government benefits in the last six months
32.20You were in jail or prison in the last six months
32.21Your wages are only protected for 60 days after they are deposited in your account
32.22so it would be helpful if you immediately send the undersigned creditor a copy of
32.23BANK STATEMENTS that show what was in your account for the past 60 days.
32.24Some of your earnings (wages) may be protected if:
32.25If all of your earnings are not exempt, some of your earnings may still be protected
32.26for 20 days after they were deposited in your account. The amount protected is the larger
32.27amount of:
32.2875 percent of your wages (after taxes are taken out); or
32.29(insert the sum of the current federal minimum wage) multiplied by 40.
32.30The money from the following are also exempt for 20 days after they are
32.31deposited in your account.
32.32An accident, disability, or retirement pension or annuity
32.33Payments to you from a life insurance policy
32.34Earnings of your child who is under 18 years of age
32.35Child support
33.1Money paid to you from a claim for damage or destruction of property.
33.2Property includes household goods, farm tools or machinery, tools for your job, business
33.3equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes,
33.4furniture, or appliances.
33.5Death benefits paid to you.
33.6YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU
33.7RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage
33.8garnishment. BUT if the creditor garnishes your bank account, you will not get
33.9the notice until AFTER the account has been frozen. IF YOU BELIEVE THE
33.10MONEY IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU
33.11SHOULD IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD
33.12TELL THEM WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT
33.13TO SEE IF YOU CAN AVOID GARNISHMENT.
33.17 Sec. 6. Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision
33.18to read:
33.19 Subd. 11. Notice of intent to garnish. The notice of intent to garnish must be in
33.20substantially the following form:
33.25Your money, property, or earnings are in danger of being garnished because
33.26you did not send a written "Answer" to the Summons and Complaint served on you
33.27over 20 days ago.
33.28There may not be a case filed in court, BUT because you did not send a written
33.29"Answer" the creditor may serve a garnishment summons on your employer, bank, or
33.30other third parties. This means that your money or wages can be garnished (held or taken).
33.31Under Minnesota law, this can happen any time 20 days after the date you receive this
33.32notice.
33.33There will be NO COURT HEARING or any further notice to you prior to a
33.34garnishment if you do nothing. There may not be a file open at the Clerk of the Court's
33.35office. There are things you can do to avoid a garnishment, but you must act quickly.
34.1Please read these instructions carefully. You have 20 days to do one of the following:
34.21. Send an Answer. If you do not think you owe the money or if you have a legal
34.3reason that you did not pay, send a written "Answer" to the Summons and Complaint.
34.4Your "Answer" should tell the creditor why you think you do not owe some or all of the
34.5money. Contact a lawyer if you do not know what to do, need help with an answer, or
34.6have any questions about the debt.
34.72. Claim an Exemption. Even if you do not have a defense to the complaint, some
34.8of your money may be protected (the legal word is exempt) from garnishment. This
34.9means it is protected and cannot be taken. The creditor will send you a form to claim these
34.10exemptions at a later time, but you can possibly avoid the garnishment by contacting
34.11the person below immediately to claim your exemption. Attached to this notice is a list
34.12of exemptions you may be able to claim.
34.133. If you do not have a defense and your money is not exempt you can call the
34.14person below before the 20 days are up and try to set up a payment plan that works for
34.15both you and your creditor. You can contact the person below at any time to try to work
34.16out a payment plan, but if you wait too long or cannot agree on a payment plan, they may
34.17garnish your wages, bank accounts, or assets.
34.18If you do not do any of these things, your money can be garnished. The creditor
34.19can garnish your wages, bank accounts, or other assets. They do not have to go to court to
34.20let you know when they start taking your money.
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 a notice, instructions, and two copies of
34.32an exemption notice. The notice, instructions, and exemption notices must be substantially
34.33in theform forms 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 section571.73 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 NOTICE, INSTRUCTIONS, AND EXEMPTION NOTICE.
35.5 Subdivision 1. Form of notice. The notice, instructions, and exemption notice
35.6informing a debtor thatan order for attachment, a garnishment summons, or levy by
35.7execution has been used to attach funds of the debtor to satisfy a claim must be a separate
35.8notice and must be substantially in the following form:
35.22The Creditor has frozen money in your account at your financial institution.
35.23Your account balance is $.......
35.24The amount being held is $.......
35.25The amount being held will be frozen for 14 days from the date of this notice.
35.26Some of your money in your account may be protected (the legal word is
35.27exempt). You may be able to get it sooner than 14 days if you act quickly and follow
35.28the instructions on the next page.
35.29The attached exemption form lists some different sources of money in your account
35.30that may be protected. If your money is from one or more of these sources, place a
35.31check on the line on the form next to the sources of your money. If it is from one of
35.32these sources, the Creditor cannot take it.
35.33BUT, you must follow the instructions and return the exemption form and
35.34copies of your bank statements from the last 60 days to have the bank unfreeze your
35.35money. If you do not follow the instructions or your Creditor gets an order from the court
35.36or writ of execution, your financial institution will give the money to your Creditor. If that
36.1happens and it is protected, you can still get it back from the Creditor later, but that is not
36.2as easy to do as filling in the form now.
36.4 Subd. 2. Form of instructions. The instructions required must be in a separate form
36.5and must be substantially in the following form:
36.7Note: The creditor is who you owe the money to. You are the debtor.
36.81. Fill out both of the attached exemption forms in this packet.
36.9If you check one of the lines, you should also give proof that shows that some
36.10or all of the money in your account is from one or more of the protected sources.
36.11Creditors may ask for a hearing if they question your exemptions.
36.12To avoid a hearing:
36.13Case numbers should be added to the form.
36.14Copies of documents should be sent with the form.
36.15NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
36.16THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
36.17FOR THE PAST 60 DAYS BEFORE THE GARNISHMENT. Keep a copy of your
36.18bank statements in case there are questions about your claim. If you do not send to
36.19the creditor's attorney (or to the creditor, if no attorney) bank statements with your
36.20exemption claim, the financial institution may release your money to the creditor
36.21once the creditor gives the financial institution a court order directing it to turn
36.22over the funds.
36.232. Sign the exemption forms. Make one copy to keep for yourself.
36.243. Mail or deliver the other copies of the form by (insert date).
36.25BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
36.26One copy of the form and the copies of your bank statements go to:
36.31One copy goes to:
36.37If You Do Not Send in the Exemption Form and Bank Statements:
37.114 days after the date of this letter some or all of your money may be turned over to
37.2the creditor once they get an order from the court telling the financial institution to do this.
37.3If You Send in the Exemption Form and Bank Statements:
37.4Any money that is NOT protected can be turned over to the creditor once they get
37.5an order from the court.
37.6If the Creditor Does Not Object:
37.7The financial institution will unfreeze your money six business days after the
37.8institution gets your completed form.
37.9If the Creditor Objects:
37.10The money you have said is protected on the form will be held by the bank. The
37.11creditor has six business days to object (disagree) and ask the court to hold a hearing. You
37.12will receive a Notice of Objection and a Notice of Hearing.
37.13The financial institution will hold the money until a court decides whether your
37.14money is protected or not. Some reasons a creditor may object are because you did not
37.15send copies of your bank statements or other proof of the benefits you received. Be sure to
37.16include these when you send your exemption form.
37.17You may want to talk to a lawyer for advice about this process. If you are low
37.18income you can call Legal Aid.
37.19PENALTIES:
37.20If you claim that your money is protected and a court decides you made that claim
37.21in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
37.22additional amount of up to $100. For example, it may be bad faith if you claim you receive
37.23government benefits that you do not receive.
37.24If the creditor made a bad faith objection to your claim that your money is protected,
37.25the court can order them to pay costs, actual damages, attorney fees, and an additional
37.26amount of up to $100.
37.27 Subd. 3. Exemption notice. The exemption notice must be a separate form and
37.28must be in substantially the following form:
38.37You may have assistance based on need from another source that is not on the list. If you
38.38do, check this box, and fill in the source of your money on the line below:
38.39Source:
..... 38.40Include copies of any documents you have that show the source of this money.
39.30I give permission to any agency that has given me cash benefits to give information
39.31about my benefits to the above-named creditor, or its attorney. The information will ONLY
39.32concern whether I get benefits or not, or whether I have gotten them in the past six months.
39.33If I was an inmate in the last six months, I give my permission to the correctional
39.34institution to tell the above-named creditor that I was an inmate there.
39.35YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
39.36ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
39.37REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
39.38THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
39.39INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
39.40I have mailed or delivered a copy of this form to:
40.3I have also mailed or delivered a copy of this exemption form to my bank at the
40.4address listed in the instructions.
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.
42.14EXEMPTION:
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.
42.20(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:
42.27(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.
43.7 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 summonsand, the notice,
43.10instructions, and two copies of the exemptionnotices notice, the financial institution
43.11shall serve upon the debtor the notice, instructions, and two copies of the exemption
43.12notice. The financial institution shall servethe notice these forms 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 exemptionnotice notices, sign it them 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. The debtor is also required to include copies of
43.20bank statements for the prior 60 days with the exemption notice delivered to the attorney
43.21for the creditor. In the event that there is no attorney for the creditor, then the notice and
43.22the bank statements must be sent directly to the creditor. Failure of the debtor to deliver
43.23the executed exemption notice or copies of the required bank statements for the prior 60
43.24days 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 ofseven six business 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 and request for hearing. An objection shall be
43.34interposed, within six business days of receipt by the creditor of an exemption claim from
43.35the debtor, by mailing or delivering one copy of thewritten objection Notice of Objection
44.1and Notice of Hearing to the financial institution and one copy of thewritten objection
44.2Notice of Objection and Notice of Hearing 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.
44.7Thewritten objection, and Request for Hearing Notice of Objection and Notice of
44.8Hearing, form must be substantially in the forms form set out in subdivisions subdivision
44.92and 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 aRequest for Notice of Objection and Notice of
44.13Hearing. Upon the filing of aRequest for Notice of Objection and Notice of Hearing, the
44.14court administrator shall schedule the matter for hearing no sooner than five business days
44.15but no later thanfive seven 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. A debtor
44.18may request continuance of the hearing by notifying the creditor and the court. The court
44.19shall schedule the continued hearing within seven days of the original hearing date.
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. Form of notice of objection and notice of hearing.(a) The written
44.23objection to the debtor Written Objection and Notice of Hearing must be in substantially
44.24the following form:
45.7The creditor objects to your claimfor of exemption from garnishment, levy of
45.8execution, order for attachment (strike inapplicable language) for the following reason(s):
45.12(Note: Bring with you to the hearing all documents and materials supporting
45.13your exemption claim. Failure to do so could delay the court's decision.)
45.14If the creditor receives all documents and materials supporting your exemption
45.15claim before the hearing date, the creditor may agree with your claim and you can avoid
45.16a hearing.
45.17Becauseof this objection, a court hearing will be held on your claim that your funds
45.18are protected, your financial institution will retain the fundsyou 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 until it
45.23receives an order from the court.
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
571.79.
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:
46.18I 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).
46.21I believe the property being held is exempt because
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 awritten objection Notice of Objection and Notice of Hearing 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, upon mutual agreement of the parties, or until the
47.5garnishment lapses pursuant to section571.79 .
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:
47.18PLEASE 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 assistance based on need, if you have been a recipient of relief assistance based on
47.26need 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.
47.33Assistance based on need includes, but is not limited to:
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.
48.19(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.
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.)
49.7(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.)
49.13(3) I have been an inmate of a correctional institution within the last six months.
49.14(Specify the correctional institution and location.)
49.17I 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.
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
1.12 Subd. 2. Disclosure form. Along with the writ of execution, the notice, instructions,
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:
1.23On 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
2.28I, ....................... (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 |
3.4judgment 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
3.6a notice, instructions, and two copies of an exemption notice, which must be substantially
3.7in the form set forth below. The sheriff shall serve the notice, instructions, and both copies
3.8of the exemption notice on the financial institution, along with the writ of execution.
3.9Failure of the sheriff to serve the notice, instructions, and 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
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, notice, instructions, and
3.15exemption notices, the financial institution shall retain as much of the amount due under
3.16section
3.17not more than 110 percent of the amount remaining due on the judgment.
| 3.18 |
||||||
| 3.19 |
..... |
.....
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||||
| 3.20 3.21 |
.....
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| 3.22 |
.....
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| 3.23 |
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3.25
3.26
3.27
3.28
3.29
3.30
3.31
3.32
3.33
3.34
3.35
3.36
3.37
4.1
4.2
4.3
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4.5
4.6
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4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
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4.20
4.21
4.22
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
4.33
4.34
4.35
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
5.20
5.21
5.22
| 5.23 |
.....
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| 5.24 |
.....
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| 5.25 |
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| 5.26 |
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| 5.27 5.28 |
5.30
5.31
5.32
| 5.33 |
..... |
5.35
5.36
5.37
| 6.1 |
.....
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| 6.2 |
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| 6.3 |
.....
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6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
| 6.13 |
.....
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| 6.14 |
|||
| 6.15 |
..... |
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| 6.16 |
.....
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| 6.17 |
.....
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| 6.18 |
|||
| 6.19 |
.....
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||
| 6.20 |
6.22a separate form and must be substantially in the following form:
| 6.23 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 6.24 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 6.25 |
.....
|
(Creditor) |
||||
| 6.26 |
.....
|
(Debtor) |
||||
| 6.27 6.28 |
.....
|
(Financial institution) |
||||
6.32Your account balance is $.......
6.33The amount being held is $.......
6.34The amount being held will be frozen for 14 days from the date of this notice.
6.35Some of your money in your account may be protected (the legal word is
6.36exempt). You may be able to get it sooner than 14 days if you act quickly and follow
6.37the instructions on the next page.
7.1The attached exemption form lists some different sources of money in your account
7.2that may be protected. If your money is from one or more of these sources, place a
7.3check on the line on the form next to the sources of your money. If it is from one of
7.4these sources, the Creditor cannot take it.
7.5BUT, you must follow the instructions and return the exemption form and
7.6copies of your bank statements from the last 60 days to have the bank unfreeze your
7.7money. If you do not follow the instructions, your financial institution will give the money
7.8to the Sheriff. If that happens and it is protected, you can still get it back from the Creditor
7.9later, but that is not as easy to do as filling in the form now.
7.11 Subd. 3b. Form of instructions. The instructions required by this section must be
7.12in a separate form and must be substantially in the following form:
7.14Note: The creditor is who you owe the money to. You are the debtor.
7.151. Fill out both of the attached exemption forms in this packet.
7.16If you check one of the lines, you should also give proof that shows that some
7.17or all of the money in your account is from one or more of the protected sources.
7.18Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
7.19Case numbers should be added to the form. Copies of documents should be
7.20sent with the form.
7.21NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
7.22THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
7.23FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
7.24statements in case there are questions about your claim. If you do not send to the
7.25creditor's attorney (or to the creditor, if no attorney) bank statements with your
7.26exemption claim, the financial institution may release your money to the sheriff.
7.272. Sign the exemption forms. Make one copy to keep for yourself.
7.283. Mail or deliver the other copies of the form by (insert date).
7.29BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
7.30One copy of the form and the copies of your bank statements go to:
| 7.31 |
.....
|
| 7.32 |
(Insert name of creditor or creditor's attorney) |
| 7.33 |
.....
|
| 7.34 |
(Insert address of creditor or creditor's attorney) |
| 8.1 |
.....
|
| 8.2 |
(Insert name of bank) |
| 8.3 |
.....
|
| 8.4 |
(Insert address of bank) |
8.714 days after the date of this letter some or all of your money may be turned over
8.8to the creditor or to the sheriff.
8.9If You Send in the Exemption Form and Bank Statements:
8.10Any money that is NOT protected can be turned over to the sheriff.
8.11If the Creditor Does Not Object:
8.12The financial institution will unfreeze your money six business days after the
8.13institution gets your completed form.
8.14If the Creditor Objects:
8.15The money you have said is protected on the form will be held by the bank. The
8.16creditor has six business days to object (disagree) and ask the court to hold a hearing. You
8.17will receive a Notice of Objection and a Notice of Hearing.
8.18The financial institution will hold the money until a court decides whether your
8.19money is protected or not. Some reasons a creditor may object are because you did not
8.20send copies of your bank statements or other proof of the benefits you received. Be sure to
8.21include these when you send your exemption form.
8.22You may want to talk to a lawyer for advice about this process. If you are low
8.23income you can call Legal Aid.
8.24PENALTIES:
8.25If you claim that your money is protected and a court decides you made that claim
8.26in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
8.27additional amount of up to $100. For example, it may be bad faith if you claim you receive
8.28government benefits that you do not receive.
8.29If the creditor made a bad faith objection to your claim that your money is protected,
8.30the court can order them to pay costs, actual damages, attorney fees, and an additional
8.31amount of up to $100.
8.32 Subd. 3c. Form of exemption form. The exemption form required by this
8.33subdivision must be sent as a separate form and must be in substantially the following
8.34form:
| 8.35 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 8.36 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 9.1 |
.....
|
(Creditor) |
||||
| 9.2 |
.....
|
(Debtor) |
||||
| 9.3 9.4 |
.....
|
(Financial institution) |
||||
10.2do, check this box, and fill in the source of your money on the line below:
10.3Source:
..... 10.4Include copies of any documents you have that show the source of this money.
10.34I give permission to any agency that has given me cash benefits to give information
10.35about my benefits to the above-named creditor, or its attorney. The information will ONLY
10.36concern whether I get benefits or not, or whether I have gotten them in the past six months.
10.37If I was an inmate in the last six months, I give my permission to the correctional
10.38institution to tell the above-named creditor that I was an inmate there.
10.39YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
10.40ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
10.41REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
11.1THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
11.2INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
11.3I have mailed or delivered a copy of this form to:
| 11.4 |
.....
|
| 11.5 |
(Insert name of creditor or creditor's attorney) |
| 11.6 |
.....
|
| 11.7 |
(Insert address of creditor or creditor's attorney) |
11.9address listed in the instructions.
| 11.10 |
DATED: ..... |
.....
|
| 11.11 |
DEBTOR |
|
| 11.12 |
.....
|
|
| 11.13 |
DEBTOR ADDRESS |
|
| 11.14 |
.....
|
|
| 11.15 |
DEBTOR TELEPHONE NUMBER |
11.17writ of execution
11.18the financial institution shall serve upon the judgment debtor the notice, instructions,
11.19and two copies of the exemption notice. The financial institution shall serve
11.20these forms 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 notice,
11.22instructions, and 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
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. The judgment debtor is also required to include copies of bank
11.29statements for the prior 60 days with the exemption notice delivered to the attorney for the
11.30judgment creditor. In the event that there is no attorney for the judgment creditor, then the
11.31notice and bank statements must be sent directly to the judgment creditor. Failure of the
11.32judgment debtor to deliver the executed exemption notice or copies of the required bank
11.33statements for the prior 60 days 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
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
12.5shall be interposed within six business days of receipt by the creditor of an exemption
12.6claim from the debtor, by mailing or delivering one copy of the
12.7Objection and Notice of Hearing to the financial institution and one copy of the
12.8
12.9
12.10
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
12.13substantially in the form specified in subdivision 7.
12.14(b) The court administrator may charge a fee of $1 for the filing of a Notice of
12.15Objection and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of
12.16Hearing, the court administrator shall schedule the matter for hearing no sooner than five
12.17business days but no later than seven business days from the date of filing. A debtor may
12.18request continuance of the hearing by notifying the creditor and the court. The court shall
12.19schedule the continued hearing within seven days of the original hearing date.
12.20(c) An order stating whether the debtor's funds are exempt must be issued by the
12.21court within three days of the date of the hearing.
12.22 Subd. 6. Duties of financial institution if objection is made to exemption claim.
12.23Upon receipt of a
12.24the
12.25financial institution shall retain the funds claimed to be exempt.
12.26
12.27
12.28
12.29
12.30
12.31
12.32retain the funds claimed to be exempt until otherwise ordered by the court or upon mutual
12.33agreement of the parties.
12.34 Subd. 7. Form of Notice of Objection and Notice of Hearing. (a) The
12.35
12.36Hearing must be in substantially the following form:
13.8
13.9
13.10
..... ..... 13.11
..... 13.12
13.13
13.14
13.15
13.16
13.17
13.18
13.19
13.20
13.21
13.22
13.23
13.24
13.25
13.26
13.27
13.28
13.29
13.30
13.31
13.32
13.33
13.34
13.35
13.36
| 14.1 |
.....
|
|
| 14.2 |
| 14.20 |
.....
|
|
| 14.21 |
.....
|
|
| 14.22 |
.....
|
|
| 14.23 14.24 |
(CREDITOR OR CREDITOR'S ATTORNEY) |
14.33following reason(s):
| 14.34 |
.....
|
| 14.35 |
.....
|
| 14.36 |
.....
|
14.38your exemption claim. Failure to do so could delay the court's decision.)
14.39If the creditor receives all documents and materials supporting your exemption
14.40claim before the hearing date, the creditor may agree with your exemption claim and
14.41you might still be able to avoid a hearing.
15.1Because a court hearing will be held on your claim that your funds are protected,
15.2your financial institution will retain the funds until it receives an order from the court or
15.3upon mutual agreement between you and your creditor.
15.4
15.5
15.12
15.13
15.14
15.15
..... 15.16
..... 15.17
| 15.18 |
..... |
||
| 15.19 |
|||
| 15.20 |
.....
|
||
| 15.21 |
|||
| 15.22 |
.....
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||
| 15.23 |
|||
| 15.24 |
.....
|
||
| 15.25 |
..... |
..... |
|
| 15.26 |
..... |
15.28
15.29
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 or the financial institution to release the funds in
15.33question to the other party. Upon receipt of a release, the sheriff or the financial institution
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
16.18and the earnings or salary of a person who is a recipient of
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,
16.22
16.23
16.24investment program, general assistance medical care, Supplemental Security Income,
16.25medical assistance, MinnesotaCare, payment of Medicare part B premiums or receipt of
16.26part D extra help, MFIP diversionary work program, work participation cash benefit,
16.27Minnesota supplemental assistance, emergency Minnesota supplemental assistance,
16.28general assistance, emergency general assistance, emergency assistance or county crisis
16.29funds, energy or fuel assistance, and food support. The salary or earnings of any debtor
16.30who is or has been an eligible recipient of
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
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
17.5the correctional institutions shall, at the request of creditors, inform them whether or not
17.6any debtor has been an eligible recipient of
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
17.14 Subd. 1a. Notice, instructions, and 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 a notice, instructions, and two
17.18copies of an exemption notice. The notice, instructions, and exemption notice must be
17.19substantially in the form set forth below. Failure of the attorney for the judgment creditor
17.20to send
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
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
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 Subd. 1b. Form of notice. The notice
17.30
17.31must be a separate form and must be substantially in the following form:
| 17.32 |
||||||
| 17.33 |
..... |
.....
|
||||
| 17.34 17.35 |
.....
|
|||||
| 18.1 |
.....
|
|||||
| 18.2 |
||||||
18.4
18.5
18.6
18.7
18.8
18.9
18.10
18.11
18.12
18.13
18.14
18.15
18.16
18.17
18.18
18.19
18.20
18.21
18.22
18.23
18.24
18.25
18.26
18.27
18.28
18.29
18.30
18.31
18.32
18.33
18.34
18.35
18.36
19.1
19.2
19.3
19.4
19.5
19.6
19.7
19.8
19.9
19.10
19.11
19.12
19.13
19.14
19.15
19.16
19.17
19.18
19.19
19.20
19.21
19.22
19.23
19.24
19.25
19.26
19.27
19.28
19.29
19.30
19.31
19.32
19.33
19.34
19.35
| 20.1 |
.....
|
|
| 20.2 |
.....
|
|
| 20.3 |
.....
|
|
| 20.4 |
.....
|
|
| 20.5 20.6 |
20.8
20.9
20.10
| 20.11 |
..... |
20.13
20.14
20.15
..... 20.16
..... 20.17
..... 20.18
20.19
20.20
20.21
20.22
20.23
20.24
20.25
20.26
20.27
| 20.28 |
.....
|
||
| 20.29 |
|||
| 20.30 |
..... |
.....
|
|
| 20.31 |
.....
|
||
| 20.32 |
.....
|
||
| 20.33 |
|||
| 20.34 |
.....
|
||
| 20.35 |
| 20.36 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 20.37 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 21.1 |
.....
|
(Creditor) |
||||
| 21.2 |
.....
|
(Debtor) |
||||
| 21.3 21.4 |
.....
|
(Financial institution) |
||||
21.8Your account balance is $.......
21.9The amount being held is $.......
21.10The amount being held will be frozen for 14 days from the date of this notice.
21.11Some of your money in your account may be protected (the legal word is
21.12exempt). You may be able to get it sooner than 14 days if you act quickly and follow
21.13the instructions on the next page.
21.14The attached exemption form lists some different sources of money in your account
21.15that may be protected. If your money is from one or more of these sources, place a
21.16check on the line on the form next to the sources of your money. If it is from one of
21.17these sources, the Creditor cannot take it.
21.18BUT, you must follow the instructions and return the exemption form and
21.19copies of your bank statements from the last 60 days to have the bank unfreeze your
21.20money. If you do not follow the instructions, your financial institution will give the money
21.21to the Creditor. If that happens and it is protected, you can still get it back from the
21.22Creditor later, but that is not as easy to do as filling in the form now.
21.24 Subd. 1c. Form of instructions. The instructions required must be in a separate
21.25form and must be substantially in the following form:
21.27Note: The creditor is who you owe the money to. You are the debtor.
21.281. Fill out both of the attached exemption forms in this packet.
21.29If you check one of the lines, you should also give proof that shows that some
21.30or all of the money in your account is from one or more of the protected sources.
21.31Creditors may ask for a hearing if they question your exemptions. To avoid a hearing:
21.32Case numbers should be added to the form. Copies of documents should be
21.33sent with the form.
21.34NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
21.35THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
21.36FOR THE PAST 60 DAYS BEFORE THE LEVY. Keep a copy of your bank
21.37statements in case there are questions about your claim. If you do not send to the
22.1creditor's attorney (or to the creditor, if no attorney) bank statements with your
22.2exemption claim, the financial institution may release your money to the creditor.
22.32. Sign the exemption forms. Make one copy to keep for yourself.
22.43. Mail or deliver the other copies of the form by (insert date).
22.5BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
22.6One copy of the form and the copies of your bank statements go to:
| 22.7 |
.....
|
| 22.8 |
(Insert name of creditor or creditor's attorney) |
| 22.9 |
.....
|
| 22.10 |
(Insert address of creditor or creditor's attorney) |
| 22.12 |
.....
|
| 22.13 |
(Insert name of bank) |
| 22.14 |
.....
|
| 22.15 |
(Insert address of bank) |
22.1814 days after the date of this letter some or all of your money may be turned over to
22.19the creditor pursuant to Minnesota statute.
22.20If You Send in the Exemption Form and Bank Statements:
22.21Any money that is NOT protected can be turned over to the creditor.
22.22If the Creditor Does Not Object:
22.23The financial institution will unfreeze your money six business days after the
22.24institution gets your completed form.
22.25If the Creditor Objects:
22.26The money you have said is protected on the form will be held by the bank. The
22.27creditor has six business days to object (disagree) and ask the court to hold a hearing. You
22.28will receive a Notice of Objection and a Notice of Hearing.
22.29The financial institution will hold the money until a court decides whether your
22.30money is protected or not. Some reasons a creditor may object are because you did not
22.31send copies of your bank statements or other proof of the benefits you received. Be sure to
22.32include these when you send your exemption form.
22.33You may want to talk to a lawyer for advice about this process. If you are low
22.34income you can call Legal Aid.
22.35PENALTIES:
22.36If you claim that your money is protected and a court decides you made that claim
22.37in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
23.1additional amount of up to $100. For example, it may be bad faith if you claim you receive
23.2government benefits that you do not receive.
23.3If the creditor made a bad faith objection to your claim that your money is protected,
23.4the court can order them to pay costs, actual damages, attorney fees, and an additional
23.5amount of up to $100.
23.6 Subd. 1d. Form of exemption form. The exemption form required by this
23.7subdivision must be a separate form and must be in substantially the following form:
| 23.8 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 23.9 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 23.10 |
.....
|
(Creditor) |
||||
| 23.11 |
.....
|
(Debtor) |
||||
| 23.12 23.13 |
.....
|
(Financial institution) |
||||
24.13do, check this box, and fill in the source of your money on the line below:
24.14Source:
..... 24.15Include copies of any documents you have that show the source of this money.
25.1I give permission to any agency that has given me cash benefits to give information
25.2about my benefits to the above-named creditor, or its attorney. The information will ONLY
25.3concern whether I get benefits or not, or whether I have gotten them in the past six months.
25.4If I was an inmate in the last six months, I give my permission to the correctional
25.5institution to tell the above-named creditor that I was an inmate there.
25.6YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
25.7ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
25.8REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
25.9THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
25.10INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
25.11I have mailed or delivered a copy of this form to:
| 25.12 |
.....
|
| 25.13 |
(Insert name of creditor or creditor's attorney) |
| 25.14 |
.....
|
| 25.15 |
(Insert address of creditor or creditor's attorney) |
25.17address listed in the instructions.
| 25.18 |
DATED: ..... |
.....
|
| 25.19 |
DEBTOR |
|
| 25.20 |
.....
|
|
| 25.21 |
DEBTOR ADDRESS |
|
| 25.22 |
.....
|
|
| 25.23 |
DEBTOR TELEPHONE NUMBER |
25.25execution levy and the notice, instructions, and two copies of the exemption notices, the
25.26financial institution shall serve upon the judgment debtor the notice, instructions, and 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
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. The debtor is also required to include copies of bank statements for
25.37the prior 60 days with the exemption notice. In the event that there is no attorney for the
26.1judgment creditor, the notice must be sent directly to the judgment creditor. Failure of the
26.2judgment debtor to deliver the executed exemption notice or copies of the required bank
26.3statements for the prior 60 days 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
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.
26.12An objection shall be interposed, within six business days of receipt by the creditor of
26.13an exemption claim from the debtor, by mailing or delivering one copy of the
26.14
26.15copy of the
26.16debtor
26.17
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
26.20Notice of Hearing form must be substantially in the form
26.21The court administrator may charge a fee of $1 for the filing of a Notice of Objection
26.22and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing,
26.23the court administrator shall schedule the matter for hearing no sooner than five business
26.24days but no later than seven business days from the date of filing. A debtor may request
26.25continuance of the hearing by notifying the creditor and the court. The court shall schedule
26.26the continued hearing within seven days of the original hearing date.
26.27An order stating whether the debtor's funds are exempt shall be issued by the court
26.28within three days of the date of the hearing.
26.29 Subd. 4. Duties of financial institution if objection is made to exemption claim.
26.30Upon receipt of a
26.31
26.32shall retain the funds claimed to be exempt.
26.33
26.34
26.35
26.36
27.1
27.2
27.3
27.4claimed to be exempt until otherwise ordered by the court, upon mutual agreement of the
27.5parties, or until the garnishment lapses pursuant to subdivision 7.
27.6 Subd. 5. Form of Notice of Objection and Notice of Hearing.
27.7
27.8
27.16
27.17
..... 27.18
..... 27.19
..... 27.20
27.21
27.22
27.23
27.24
27.25
27.26
27.27
27.28
27.29
27.30
27.31
27.32
27.33
27.34
27.35
27.36
28.1
28.2
28.3
28.4
28.5
28.6
28.7
28.8
| 28.9 |
.....
|
|
| 28.10 |
28.12following form:
29.1The creditor objects to your claim of exemption from levy of execution for the
29.2following reason(s):
| 29.3 |
.....
|
| 29.4 |
.....
|
| 29.5 |
.....
|
29.7your exemption claim. Failure to do so could delay the court's decision.)
29.8If the creditor receives all documents and materials supporting your exemption
29.9claim before the hearing date, the creditor may agree with your exemption claim and you
29.10might be able to avoid a hearing.
29.11Because a court hearing will be held on your claim that your funds are protected,
29.12your financial institution will retain the funds until it receives an order from the court or
29.13upon mutual agreement between you and the creditor.
29.14
29.15
29.23
29.24
29.25
29.26
..... 29.27
..... 29.28
| 29.29 |
..... |
.....
|
|
| 29.30 |
|||
| 29.31 |
.....
|
||
| 29.32 |
|||
| 29.33 |
.....
|
||
| 29.34 |
..... |
..... |
|
| 29.35 |
..... |
||
29.37
29.38
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
30.32(2) at any time
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. Garnishment under this clause is effective only after the Notice of Intent
31.1to Garnish form in section 571.72, subdivision 11, and the Exemption form in section
31.2571.72, subdivision 10, are served on the debtor at any time 20 or more days after the
31.3service of the Summons and Complaint and, in addition, the creditor does not receive an
31.4Answer from the debtor within 25 days after service of the Notice of Intent to Garnish.
31.5The Notice of Intent to Garnish form and the Exemption form must be substantially in the
31.6form set forth in section 571.72, subdivisions 10 and 11. If a creditor sends a Notice of
31.7Intent to Garnish form to a debtor under this clause, the creditor cannot obtain a default
31.8judgment against the debtor under rule 55.01(a) of the Minnesota Rules of Civil Procedure
31.9for the District Court until 25 days after the service of the Notice of Intent to Garnish
31.10form. 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
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 Subd. 10. Exemption notice for prejudgment garnishment.
31.18IMPORTANT NOTICE: A garnishment summons may be served on your
31.19employer, bank, or other third parties without any further court proceeding or notice
31.20to you. See the attached Notice of Intent to Garnish for more information.
31.21The following money and wages may be protected (the legal word is exempt)
31.22from garnishment:
31.231. Financial institutions/bank
31.24Some of the money in your account may be protected because you receive
31.25government benefits from one or more of the following places:
31.26MFIP - Minnesota family investment program,
31.27MFIP Diversionary Work Program,
31.28Work participation cash benefit,
31.29GA - general assistance,
31.30EA - emergency assistance,
31.31MA - medical assistance,
31.32GAMC - general assistance medical care,
31.33EGA - emergency general assistance or county crisis funds,
31.34MSA - Minnesota supplemental aid,
31.35MSA-EA - MSA emergency assistance,
32.1Food Support,
32.2SSI - Supplemental Security Income,
32.3MinnesotaCare,
32.4Medicare part B premium payments,
32.5Medicare part D extra help,
32.6Energy or fuel assistance,
32.7Social Security benefits,
32.8Unemployment benefits,
32.9Workers' compensation,
32.10Veterans benefits.
32.11Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK
32.12STATEMENTS that show what was in your account for the past 60 days may give
32.13the creditor enough information about your exemption claim to avoid a garnishment.
32.142. Earnings
32.15All or some of your earnings may be completely protected from garnishment if:
32.16All of your earnings (wages) may be protected if:
32.17You get government benefits (see list of government benefits)
32.18You currently receive other assistance based on need
32.19You have received government benefits in the last six months
32.20You were in jail or prison in the last six months
32.21Your wages are only protected for 60 days after they are deposited in your account
32.22so it would be helpful if you immediately send the undersigned creditor a copy of
32.23BANK STATEMENTS that show what was in your account for the past 60 days.
32.24Some of your earnings (wages) may be protected if:
32.25If all of your earnings are not exempt, some of your earnings may still be protected
32.26for 20 days after they were deposited in your account. The amount protected is the larger
32.27amount of:
32.2875 percent of your wages (after taxes are taken out); or
32.29(insert the sum of the current federal minimum wage) multiplied by 40.
32.30The money from the following are also exempt for 20 days after they are
32.31deposited in your account.
32.32An accident, disability, or retirement pension or annuity
32.33Payments to you from a life insurance policy
32.34Earnings of your child who is under 18 years of age
32.35Child support
33.1Money paid to you from a claim for damage or destruction of property.
33.2Property includes household goods, farm tools or machinery, tools for your job, business
33.3equipment, a mobile home, a car, a musical instrument, a pew or burial lot, clothes,
33.4furniture, or appliances.
33.5Death benefits paid to you.
33.6YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU
33.7RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage
33.8garnishment. BUT if the creditor garnishes your bank account, you will not get
33.9the notice until AFTER the account has been frozen. IF YOU BELIEVE THE
33.10MONEY IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU
33.11SHOULD IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD
33.12TELL THEM WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT
33.13TO SEE IF YOU CAN AVOID GARNISHMENT.
| 33.14 |
Creditor ..... |
| 33.15 |
Creditor address ..... |
| 33.16 |
Creditor telephone number ..... |
33.17 Sec. 6. Minnesota Statutes 2008, section 571.72, is amended by adding a subdivision
33.18to read:
33.19 Subd. 11. Notice of intent to garnish. The notice of intent to garnish must be in
33.20substantially the following form:
| 33.23 |
.....
|
against |
.....
|
| 33.24 |
Plaintiff/Creditor |
Defendant/Debtor |
33.26you did not send a written "Answer" to the Summons and Complaint served on you
33.27over 20 days ago.
33.28There may not be a case filed in court, BUT because you did not send a written
33.29"Answer" the creditor may serve a garnishment summons on your employer, bank, or
33.30other third parties. This means that your money or wages can be garnished (held or taken).
33.31Under Minnesota law, this can happen any time 20 days after the date you receive this
33.32notice.
33.33There will be NO COURT HEARING or any further notice to you prior to a
33.34garnishment if you do nothing. There may not be a file open at the Clerk of the Court's
33.35office. There are things you can do to avoid a garnishment, but you must act quickly.
34.1Please read these instructions carefully. You have 20 days to do one of the following:
34.21. Send an Answer. If you do not think you owe the money or if you have a legal
34.3reason that you did not pay, send a written "Answer" to the Summons and Complaint.
34.4Your "Answer" should tell the creditor why you think you do not owe some or all of the
34.5money. Contact a lawyer if you do not know what to do, need help with an answer, or
34.6have any questions about the debt.
34.72. Claim an Exemption. Even if you do not have a defense to the complaint, some
34.8of your money may be protected (the legal word is exempt) from garnishment. This
34.9means it is protected and cannot be taken. The creditor will send you a form to claim these
34.10exemptions at a later time, but you can possibly avoid the garnishment by contacting
34.11the person below immediately to claim your exemption. Attached to this notice is a list
34.12of exemptions you may be able to claim.
34.133. If you do not have a defense and your money is not exempt you can call the
34.14person below before the 20 days are up and try to set up a payment plan that works for
34.15both you and your creditor. You can contact the person below at any time to try to work
34.16out a payment plan, but if you wait too long or cannot agree on a payment plan, they may
34.17garnish your wages, bank accounts, or assets.
34.18If you do not do any of these things, your money can be garnished. The creditor
34.19can garnish your wages, bank accounts, or other assets. They do not have to go to court to
34.20let you know when they start taking your money.
| 34.21 |
LAW FIRM |
||
| 34.22 |
Dated: ..... |
By: ..... |
|
| 34.23 |
Attorney, # |
||
| 34.24 |
Attorneys for Plaintiff |
||
| 34.25 |
Address |
||
| 34.26 |
Telephone |
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 a notice, instructions, and two copies of
34.32an exemption notice. The notice, instructions, and exemption notices must be substantially
34.33in the
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
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 NOTICE, INSTRUCTIONS, AND EXEMPTION NOTICE.
35.5 Subdivision 1. Form of notice. The notice, instructions, and exemption notice
35.6informing a debtor that
35.7
35.8notice and must be substantially in the following form:
| 35.9 |
|||
| 35.10 |
..... |
.....
|
|
| 35.11 |
.....
|
||
| 35.12 |
.....
|
||
| 35.13 |
| 35.14 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 35.15 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 35.16 |
.....
|
(Creditor) |
||||
| 35.17 |
.....
|
(Debtor) |
||||
| 35.18 35.19 |
.....
|
(Financial institution) |
||||
35.23Your account balance is $.......
35.24The amount being held is $.......
35.25The amount being held will be frozen for 14 days from the date of this notice.
35.26Some of your money in your account may be protected (the legal word is
35.27exempt). You may be able to get it sooner than 14 days if you act quickly and follow
35.28the instructions on the next page.
35.29The attached exemption form lists some different sources of money in your account
35.30that may be protected. If your money is from one or more of these sources, place a
35.31check on the line on the form next to the sources of your money. If it is from one of
35.32these sources, the Creditor cannot take it.
35.33BUT, you must follow the instructions and return the exemption form and
35.34copies of your bank statements from the last 60 days to have the bank unfreeze your
35.35money. If you do not follow the instructions or your Creditor gets an order from the court
35.36or writ of execution, your financial institution will give the money to your Creditor. If that
36.1happens and it is protected, you can still get it back from the Creditor later, but that is not
36.2as easy to do as filling in the form now.
36.4 Subd. 2. Form of instructions. The instructions required must be in a separate form
36.5and must be substantially in the following form:
36.7Note: The creditor is who you owe the money to. You are the debtor.
36.81. Fill out both of the attached exemption forms in this packet.
36.9If you check one of the lines, you should also give proof that shows that some
36.10or all of the money in your account is from one or more of the protected sources.
36.11Creditors may ask for a hearing if they question your exemptions.
36.12To avoid a hearing:
36.13Case numbers should be added to the form.
36.14Copies of documents should be sent with the form.
36.15NOTICE: YOU MUST SEND TO THE CREDITOR'S ATTORNEY (OR TO
36.16THE CREDITOR, IF NO ATTORNEY) COPIES OF YOUR BANK STATEMENTS
36.17FOR THE PAST 60 DAYS BEFORE THE GARNISHMENT. Keep a copy of your
36.18bank statements in case there are questions about your claim. If you do not send to
36.19the creditor's attorney (or to the creditor, if no attorney) bank statements with your
36.20exemption claim, the financial institution may release your money to the creditor
36.21once the creditor gives the financial institution a court order directing it to turn
36.22over the funds.
36.232. Sign the exemption forms. Make one copy to keep for yourself.
36.243. Mail or deliver the other copies of the form by (insert date).
36.25BOTH COPIES MUST BE MAILED OR DELIVERED THE SAME DAY.
36.26One copy of the form and the copies of your bank statements go to:
| 36.27 |
.....
|
| 36.28 |
(Insert name of creditor or creditor's attorney) |
| 36.29 |
.....
|
| 36.30 |
(Insert address of creditor or creditor's attorney) |
| 36.32 |
.....
|
| 36.33 |
(Insert name of bank) |
| 36.34 |
.....
|
| 36.35 |
(Insert address of bank) |
37.114 days after the date of this letter some or all of your money may be turned over to
37.2the creditor once they get an order from the court telling the financial institution to do this.
37.3If You Send in the Exemption Form and Bank Statements:
37.4Any money that is NOT protected can be turned over to the creditor once they get
37.5an order from the court.
37.6If the Creditor Does Not Object:
37.7The financial institution will unfreeze your money six business days after the
37.8institution gets your completed form.
37.9If the Creditor Objects:
37.10The money you have said is protected on the form will be held by the bank. The
37.11creditor has six business days to object (disagree) and ask the court to hold a hearing. You
37.12will receive a Notice of Objection and a Notice of Hearing.
37.13The financial institution will hold the money until a court decides whether your
37.14money is protected or not. Some reasons a creditor may object are because you did not
37.15send copies of your bank statements or other proof of the benefits you received. Be sure to
37.16include these when you send your exemption form.
37.17You may want to talk to a lawyer for advice about this process. If you are low
37.18income you can call Legal Aid.
37.19PENALTIES:
37.20If you claim that your money is protected and a court decides you made that claim
37.21in bad faith, the court can order you to pay costs, actual damages, attorney fees, and an
37.22additional amount of up to $100. For example, it may be bad faith if you claim you receive
37.23government benefits that you do not receive.
37.24If the creditor made a bad faith objection to your claim that your money is protected,
37.25the court can order them to pay costs, actual damages, attorney fees, and an additional
37.26amount of up to $100.
37.27 Subd. 3. Exemption notice. The exemption notice must be a separate form and
37.28must be in substantially the following form:
| 37.29 |
STATE OF MINNESOTA |
DISTRICT COURT |
||||
| 37.30 |
COUNTY OF ..... |
.....
JUDICIAL DISTRICT |
||||
| 37.31 |
.....
|
(Creditor) |
||||
| 37.32 |
.....
|
(Debtor) |
||||
| 37.33 37.34 |
.....
|
(Financial institution) |
||||
38.38do, check this box, and fill in the source of your money on the line below:
38.39Source:
..... 38.40Include copies of any documents you have that show the source of this money.
39.30I give permission to any agency that has given me cash benefits to give information
39.31about my benefits to the above-named creditor, or its attorney. The information will ONLY
39.32concern whether I get benefits or not, or whether I have gotten them in the past six months.
39.33If I was an inmate in the last six months, I give my permission to the correctional
39.34institution to tell the above-named creditor that I was an inmate there.
39.35YOU MUST SIGN AND SEND THIS FORM BACK TO THE CREDITOR'S
39.36ATTORNEY (OR TO THE CREDITOR, IF NO ATTORNEY) AND THE BANK.
39.37REMEMBER TO INCLUDE A COPY OF YOUR BANK STATEMENTS FOR
39.38THE PAST 60 DAYS. FILL IN THE BLANKS BELOW AND GO BACK TO THE
39.39INSTRUCTIONS TO MAKE SURE YOU DO IT CORRECTLY.
39.40I have mailed or delivered a copy of this form to:
| 39.41 |
.....
|
| 39.42 |
(Insert name of creditor or creditor's attorney) |
| 40.1 |
.....
|
| 40.2 |
(Insert address of creditor or creditor's attorney) |
40.4address listed in the instructions.
| 40.5 |
DATED: ..... |
.....
|
| 40.6 |
DEBTOR |
|
| 40.7 |
.....
|
|
| 40.8 |
DEBTOR ADDRESS |
|
| 40.9 |
.....
|
|
| 40.10 |
DEBTOR TELEPHONE NUMBER |
40.12
40.13
40.14
40.15
40.16
40.17
40.18
40.19
40.20
40.21
40.22
40.23
40.24
40.25
40.26
40.27
40.28
40.29
40.30
40.31
40.32
40.33
40.34
40.35
40.36
40.37
41.1
41.2
41.3
41.4
41.5
41.6
41.7
41.8
41.9
41.10
41.11
41.12
41.13
41.14
41.15
41.16
41.17
41.18
41.19
41.20
41.21
41.22
41.23
41.24
41.25
41.26
41.27
41.28
41.29
41.30
41.31
41.32
41.33
41.34
41.35
42.1
42.2
42.3
42.4
42.5
42.6
42.7
| 42.8 |
.....
|
||
| 42.9 |
.....
|
||
| 42.10 |
.....
|
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| 42.11 |
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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
43.10instructions, and two copies of the exemption
43.11shall serve upon the debtor the notice, instructions, and two copies of the exemption
43.12notice. The financial institution shall serve
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
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. The debtor is also required to include copies of
43.20bank statements for the prior 60 days with the exemption notice delivered to the attorney
43.21for the creditor. In the event that there is no attorney for the creditor, then the notice and
43.22the bank statements must be sent directly to the creditor. Failure of the debtor to deliver
43.23the executed exemption notice or copies of the required bank statements for the prior 60
43.24days 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
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 and request for hearing. An objection shall be
43.34interposed, within six business days of receipt by the creditor of an exemption claim from
43.35the debtor, by mailing or delivering one copy of the
44.1and Notice of Hearing to the financial institution and one copy of the
44.2Notice of Objection and Notice of Hearing to the debtor.
44.3
44.4
44.5
44.6
44.7The
44.8Hearing
44.92
44.10
44.11
44.12may charge a fee of $1 for the filing of a
44.13Hearing. Upon the filing of a
44.14court administrator shall schedule the matter for hearing no sooner than five business days
44.15but no later than
44.16
44.17
44.18may request continuance of the hearing by notifying the creditor and the court. The court
44.19shall schedule the continued hearing within seven days of the original hearing date.
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. Form of notice of objection and notice of hearing.
44.23
44.24the following form:
45.7The creditor objects to your claim
45.8
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45.13your exemption claim. Failure to do so could delay the court's decision.)
45.14If the creditor receives all documents and materials supporting your exemption
45.15claim before the hearing date, the creditor may agree with your claim and you can avoid
45.16a hearing.
45.17Because
45.18are protected, your financial institution will retain the funds
45.19
45.20
45.21
45.22
45.23receives an order from the court.
45.24
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46.32
46.33 Subd. 4. Duties of financial institution if objection is made to exemption claim.
46.34Upon receipt of a
46.35creditor within the specified seven-day period, the financial institution shall retain the
46.36funds claimed to be exempt.
46.37
46.38
47.1
47.2
47.3
47.4until otherwise ordered by the court, upon mutual agreement of the parties, or until the
47.5garnishment lapses pursuant to section
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:
47.18PLEASE 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
47.25
47.26need within the last six months, or if you have been an inmate of a correctional institution
47.27in the last six months.
47.28
47.29
47.30
47.31
47.32
47.33Assistance based on need includes, but is not limited to:
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.
48.19(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.
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Dated: ..... |
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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.)
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49.8need within the last six months. (Specify the program, case number, and the county
49.9from which relief has been received.)
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49.14(Specify the correctional institution and location.)
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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.
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