Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 405-S.F.No. 3116
An act relating to creditors' remedies; regulating
garnishments, executions, and levies; revising forms;
regulating service; defining terms; providing
notification; increasing the dollar amount of
attorneys' execution levies; making various
housekeeping and technical changes; amending Minnesota
Statutes 1998, sections 550.051, subdivision 1;
550.143, subdivisions 7 and 8; 551.01; 551.04,
subdivisions 4, 6, and 9; 551.05, subdivision 5;
551.06, subdivision 9; 571.72, subdivision 2; 571.74;
571.79; 571.82, subdivision 1; and 571.914,
subdivision 2; Minnesota Statutes 1999 Supplement,
sections 550.136, subdivision 6; 550.143, subdivision
3; 551.05, subdivision 1a; 551.06, subdivision 10;
571.912; and 571.925; proposing coding for new law in
Minnesota Statutes, chapters 551; and 571; repealing
Minnesota Statutes 1998, section 571.80.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 550.051,
subdivision 1, is amended to read:
Subdivision 1. [TIME PERIODS.] The writ of execution
expires 180 days after its issuance by the court administrator.
A levy that is served with a writ of execution that has expired
is void. If the officer or creditor's attorney having the writ
levies upon property or earnings before the expiration of 180
days, the officer or creditor's attorney may retain the writ
until the officer sells the property or completes the levy upon
earnings in the manner prescribed by law. Any levy properly
served in accordance with this chapter or chapter 551 prior to
the expiration of the writ shall be processed in accordance with
the appropriate statutory section until completion, without
regard for the date of expiration of the writ. Upon a demand of
the judgment creditor or the creditor's attorney within 180
days, the officer shall pay to the judgment creditor or the
judgment creditor's attorney all money collected upon execution
after deducting the officer's fees. Upon expiration of the writ
or full satisfaction of the judgment, if earlier, the officer
shall make a full inventory of the property levied on and return
it with the execution.
Sec. 2. Minnesota Statutes 1999 Supplement, section
550.136, subdivision 6, is amended to read:
Subd. 6. [EARNINGS EXEMPTION NOTICE.] Before the first
levy on earnings under this chapter, the judgment creditor shall
serve upon the judgment debtor no less than ten days before the
service of the writ of execution, a notice that the writ of
execution may be served on the judgment debtor's employer. The
notice must: (1) be substantially in the form set forth below;
(2) be served personally, in the manner of a summons and
complaint, or by first class mail to the last known address of
the judgment debtor; (3) inform the judgment debtor that an
execution levy may be served on the judgment debtor's employer
in ten days, and that the judgment debtor may, within that time,
cause to be served on the judgment creditor a signed statement
under penalties of perjury asserting an entitlement to an
exemption from execution; (4) inform the judgment debtor of the
earnings exemptions contained in section 550.37, subdivision 14;
and (5) advise the judgment debtor of the relief set forth in
this chapter to which the debtor may be entitled if a judgment
creditor in bad faith disregards a valid claim and the fee,
costs, and penalty that may be assessed against a judgment
debtor who in bad faith falsely claims an exemption or in bad
faith takes action to frustrate the execution process. The
notice requirement of this subdivision does not apply to a levy
on earnings being retained by an employer pursuant to a
garnishment previously served in compliance with chapter 571.
The ten-day notice informing a judgment debtor that a writ
of execution may be used to levy the earnings of an individual
must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............. ........... JUDICIAL DISTRICT
.............(Judgment Creditor)
against
EXECUTION EXEMPTION
.............(Judgment Debtor) NOTICE AND NOTICE OF
and INTENT TO LEVY ON EARNINGS
WITHIN TEN DAYS
.............(Third Party)
PLEASE TAKE NOTICE that a levy may be served upon your
employer or other third parties, without any further court
proceedings or notice to you, ten days or more from the date
hereof. Your earnings are completely exempt from execution levy
if you are now a recipient of relief based on need, if you have
been a recipient of relief within the last six months, or if you
have been an inmate of a correctional institution in the last
six months.
Relief based on need includes Minnesota Family Investment
Program (MFIP), Emergency Assistance (EA), Work First, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA),
Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
(MSA-EA), Supplemental Security Income (SSI), and Energy
Assistance.
If you wish to claim an exemption, you should fill out the
appropriate form below, sign it, and send it to the judgment
creditor's attorney.
You may wish to contact the attorney for the judgment
creditor in order to arrange for a settlement of the debt or
contact an attorney to advise you about exemptions or other
rights.
PENALTIES
(1) Be advised that even if you claim an exemption, an
execution levy may still be served on your employer. If
your earnings are levied on after you claim an exemption,
you may petition the court for a determination of your
exemption. If the court finds that the judgment creditor
disregarded your claim of exemption in bad faith, you will
be entitled to costs, reasonable attorney fees, actual
damages, and an amount not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the
judgment creditor can also petition the court for a
determination of your exemption, and if the court finds
that you claimed an exemption in bad faith, you will be
assessed costs and reasonable attorney's fees plus an
amount not to exceed $100.
(3) If after receipt of this notice, you in bad faith take
action to frustrate the execution levy, thus requiring the
judgment creditor to petition the court to resolve the
problem, you will be liable to the judgment creditor for
costs and reasonable attorney's fees plus an amount not to
exceed $100.
DATED: ............ ........................
(Attorney for Judgment Creditor)
........................
Address
........................
Telephone
JUDGMENT DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from execution
because:
(1) I am presently a recipient of relief based on need.
(Specify the program, case number, and the county from
which relief is being received.)
................ ...................... ...............
Program Case Number (if known) County
(2) I am not now receiving relief based on need, but I have
received relief based on need within the last six months.
(Specify the program, case number, and the county from
which relief has been received.)
................ ...................... ...............
Program Case Number (if known) County
(3) I have been an inmate of a correctional institution
within the last six months. (Specify the correctional
institution and location.)
........................... ..........................
Correctional Institution Location
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above-named judgment creditor or the judgment
creditor's attorney only whether or not I am or have been a
recipient of relief based on need or an inmate of a correctional
institution within the last six months. I have mailed or
delivered a copy of this form to the judgment creditor or
judgment creditor's attorney.
........................... .........................
Debtor
.........................
Address
.........................
Debtor Telephone Number
Sec. 3. Minnesota Statutes 1999 Supplement, section
550.143, subdivision 3, is amended to read:
Subd. 3. [EXEMPTION NOTICE.] If the levy is on funds of a
judgment debtor who is a natural person and if the funds to be
levied are held on deposit at any financial institution, the
judgment creditor or its attorney shall provide the sheriff with
two copies of an exemption notice, which must be substantially
in the form set forth below. The sheriff shall serve both
copies of the exemption notice on the financial institution,
along with the writ of execution. Failure of the sheriff to
serve the exemption notices renders the levy void, and the
financial institution shall take no action. However, if this
subdivision is being used to execute on funds that have
previously been garnished in compliance with section 571.71, the
judgment creditor is not required to serve additional exemption
notices. In that event, the execution levy shall only be
effective as to the funds that were subject to the prior
garnishment. Upon receipt of the writ of execution and
exemption notices, the financial institution shall retain as
much of the amount due under section 550.04 as the financial
institution has on deposit owing to the judgment debtor, but not
more than 110 percent of the amount remaining due on the
judgment.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ .......... JUDICIAL DISTRICT
.............(Judgment Creditor)
.............(Judgment Debtor)
TO: Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............. (Bank or other financial institution where you
have an account.)
Your account balance is $........
The amount being held is $........
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes the Minnesota
Family Investment Program (MFIP), Emergency Assistance (EA),
Work First Program, Medical Assistance (MA), General Assistance
(GA), General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA
Emergency Assistance (MSA-EA), Supplemental Security Income
(SSI), and Energy Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment compensation, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every debtor's after tax earnings; and
(11) all of a judgment debtor's after tax earnings below 40
times the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the judgment creditor
is being held in your account to give you a chance to claim an
exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the judgment
creditor's attorney. In the event that there is no attorney for
the judgment creditor, then the notice shall be sent directly to
the judgment creditor. The address for the judgment creditor's
attorney or the judgment creditor is set forth below. Both
copies must be mailed or delivered on the same day.
NOTE: You may help resolve your claim faster if you send
to the creditor's attorney written proof or documents that
show why your money is exempt. If you have questions
regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written
proof and the creditor's attorney has questions about your
exemption claim, the creditor's attorney may object to your
claim which may result in a further delay in releasing your
exempt funds.
If the financial institution does not get the exemption
claim back from you within 14 days of the date they mailed or
gave it to you, they will be free to turn the money over to the
sheriff or the judgment creditor. If you are going to claim an
exemption, do so as soon as possible, because your money may be
held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the judgment
creditor or sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
the institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is personally served on you,
or within 13 days from the date the objection is mailed or given
to you. You may wish to consult an attorney at once if the
creditor objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the judgment
creditor wrongly objects to an exemption in bad faith, the court
may order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the 11 categories listed above, I am in category number
............ (If more than one category applies, you may fill
in as many as apply.) The source of the exempt funds is the
following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named creditor or its attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the judgment creditor or judgment creditor's attorney if
represented at the address indicated above.
.............................
DEBTOR
DATED: ............. .............................
.............................
.............................
DEBTOR ADDRESS
.............................
DEBTOR TELEPHONE NUMBER
Sec. 4. Minnesota Statutes 1998, section 550.143,
subdivision 7, is amended to read:
Subd. 7. [NOTICE OF OBJECTION.] (a) The written objection
to the judgment debtor's claim of exemption must be in
substantially the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............... ..........JUDICIAL DISTRICT
...................(Judgment Creditor) OBJECTION TO
...................(Judgment Debtor) EXEMPTION CLAIM
...................(Garnishee) (Third Party)
The judgment creditor objects to your claim for exemption
from garnishment, levy of execution, order for attachment
(strike inapplicable language) for the following reason(s):
.................................................................
.................................................................
.................................................................
Because of this objection, your financial institution will
retain the funds you claimed to be exempt for an additional ten
days. If you wish to request a hearing on your exemption claim,
you should need to do so within ten days of your receipt of this
objection from the date the objection was personally served on
you, or within 13 days of the date the objection was mailed to
you. You may request a hearing by completing the attached form
and filing it with the court administrator.
1. The court administrator's office shall provide clerical
assistance to help with the writing and filing of a Request for
Hearing by any person not represented by counsel. The court
administrator may charge a fee of $1 for the filing of a Request
for Hearing.
2. Upon the filing of a Request for Hearing, the court
administrator shall schedule the matter for a hearing no later
than five business days from the date of filing. The court
administrator shall forthwith send a completed copy of the
request, including the hearing date, time, and place to the
adverse party and to the financial institution by first class
mail.
3. If it is possible that the financial institution might
not receive the request mailed from the court administrator
within ten days, then you may want to personally deliver a copy
of the request to the financial institution after you have filed
your request with the court.
4. An order stating whether your funds are exempt shall be
issued by the court within three days of the date of the hearing.
If you do not file a Request for Hearing within ten days of
the date you receive this objection the objection was personally
served on you, or within 13 days from the date the objection was
mailed to you, your financial institution may turn your funds
over to your creditor.
If you file a Request for Hearing and your financial
institution receives it within ten days of the date it received
this objection, your financial institution will retain your
funds claimed to be exempt until otherwise ordered by the court.
............................
Judgment Creditor or Attorney
Sec. 5. Minnesota Statutes 1998, section 550.143,
subdivision 8, is amended to read:
Subd. 8. [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The
request for hearing accompanying the objection notice must be in
substantially the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ........ ........JUDICIAL DISTRICT
..................(Judgment Creditor) REQUEST FOR HEARING
..................(Judgment Debtor) AND
..................(Third Party) NOTICE FOR HEARING
I hereby request a hearing to resolve the exemption claim
which has been made in this case regarding funds in the account
of ............. (Judgment Debtor) at the ......... (Financial
Institution).
I believe the property being held is exempt because
.................................................................
.................................................................
Dated:...........................................................
(JUDGMENT DEBTOR)
...................
(ADDRESS)
...................
(DEBTOR PHONE NUMBER)
...................
HEARING DATE: ................ TIME: ...................
HEARING PLACE: ...............
(Note to both parties: Bring with you to the hearing all
documents and materials relevant to the exemption claim and
objection. Failure to do so could delay the court's decision.)
Sec. 6. Minnesota Statutes 1998, section 551.01, is
amended to read:
551.01 [ATTORNEY'S SUMMARY EXECUTION OF JUDGMENT DEBTS;
WHEN AUTHORIZED.]
An attorney for a judgment creditor may execute on a money
judgment by levying on indebtedness owed to the judgment debtor
by a third party, pursuant to this chapter. The attorney for
the judgment creditor must obtain a writ of execution issued
under section 550.04 before the attorney can execute pursuant to
this chapter. No more than $5,000 $10,000 may be recovered by a
single notice of execution levy pursuant to this section. No
more than one execution may be served on a single third party by
a judgment creditor each calendar day under this chapter.
Sec. 7. Minnesota Statutes 1998, section 551.04,
subdivision 4, is amended to read:
Subd. 4. [SERVICE OF THIRD PARTY LEVY; NOTICE AND
DISCLOSURE FORMS.] When levying upon money or earnings owed to
the judgment debtor by a third party, the attorney for the
judgment creditor shall serve a copy of the writ of execution
upon the third party either by registered or certified mail, or
by personal service. A third party levy served by registered or
certified mail is effective if served at the third party's
regular place of business. Along with a copy of the writ of
execution, the attorney shall serve upon the third party a
notice of third party levy and disclosure form that must be
substantially in the form set forth below. If the levy is upon
earnings, the attorney shall serve upon the third party the
notice of third party levy and disclosure form as set forth in
section 551.06, subdivision 9.
STATE OF MINNESOTA DISTRICT COURT
County of ............. ..........JUDICIAL DISTRICT
File No. ..................
..............(Judgment Creditor)
against NOTICE OF THIRD PARTY
..............(Judgment Debtor) LEVY AND DISCLOSURE
and (OTHER THAN EARNINGS)
..............(Third Party)
PLEASE TAKE NOTICE that pursuant to Minnesota Statutes,
chapter 551, the undersigned, as attorney for the judgment
creditor, hereby makes demand and levies execution upon all
money due and owing by you (up to $5,000 $10,000) to the
judgment debtor for the amount of the judgment specified below.
A copy of the writ of execution issued by the court is
enclosed. The unpaid judgment balance is $.......
In responding to this levy, you are to complete the
attached disclosure form and mail it to the undersigned attorney
for the judgment creditor, together with your check payable to
the above-named judgment creditor, for the nonexempt amount owed
by you to the judgment debtor or for which you are obligated to
the judgment debtor, within the time limits set forth in chapter
551.
If you are a financial institution and the judgment debtor
is a natural person, two exemption notices are also enclosed
pursuant to Minnesota Statutes, section 551.02. Only natural
persons are entitled to exemptions under this statute.
Attorney for the Judgment Creditor
Address
(...........)
Phone number
DISCLOSURE
On the ..... day of ............., ......., the time of
service of the execution levy herein, there was due and owing
the judgment debtor from the third party the following:
(1) Money. Enter on the line below any amounts due and
owing the judgment debtor, except earnings, from the third party.
.......................................................
(2) Setoff. Enter on the line below the amount of any
setoff, defense, lien, or claim which the third party claims
against the amount set forth on line (1). State the facts by
which such setoff, defense, lien, or claim is claimed. (Any
indebtedness to you incurred by the judgment debtor within ten
days prior to the receipt of the first execution levy on a debt
may not be claimed as a setoff, defense, lien, or claim against
the amount set forth on line (1).)
..............................................
(3) Exemption. Enter on the line below any amounts or
property claimed by the judgment debtor to be exempt from
execution.
..............................................
(4) Adverse Interest. Enter on the line below any amounts
claimed by other persons by reason of ownership or interest in
the judgment debtor's property.
..............................................
(5) Enter on the line below the total of lines (2), (3),
and (4).
...................................................
(6) Enter on the line below the difference obtained (never
less than zero when line (5) is subtracted from the amount on
line (1)).
.....................................................
(7) Enter on the line below 100 percent of the amount of
the judgment creditor's claim which remains unpaid.
.....................................................
(8) Enter on the line below the lesser of line (6) and line
(7). You are hereby instructed to remit this amount only if it
is $10 or more.
.....................................................
AFFIRMATION
I, ....................... (person signing Affirmation), am
the third party or I am authorized by the third party to
complete this nonearnings disclosure, and have done so
truthfully and to the best of my knowledge.
Dated: ................ ..................
Signature
..................
Title
..................
Telephone Number
Sec. 8. Minnesota Statutes 1998, section 551.04,
subdivision 6, is amended to read:
Subd. 6. [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within
15 days after receipt of the writ of execution, unless governed
by section 551.05 or 551.06, the third party shall disclose and
remit to the judgment creditor's attorney as much of the amount
due under section 550.04, but not more than $5,000 $10,000, as
the third party's own debt equals to the judgment debtor. The
attorney for the judgment creditor shall proceed in all other
respects like the sheriff making a similar execution levy. No
more than $5,000 $10,000 may be recovered by a single execution
levy pursuant to this section.
Sec. 9. Minnesota Statutes 1998, section 551.04,
subdivision 9, is amended to read:
Subd. 9. [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO
DISCLOSE OR REMIT.] Judgment may be entered against a third
party who has been served with a writ of execution and fails to
disclose or remit the levied funds as required in this chapter.
Upon order to show cause served on the third party and notice of
motion supported by affidavit of facts and affidavit of service
upon both the judgment debtor and third party, the court may
render judgment against the third party for an amount not
exceeding 100 percent of the amount claimed in the execution or
$5,000 $10,000, whichever is less. Judgment against the third
party pursuant to this section shall not bar the judgment
creditor from further remedies under this chapter as a result of
any subsequent defaults by the third party. The court upon good
cause shown may remove the default and permit the third party to
disclose or remit on just terms.
Sec. 10. [551.041] [ATTORNEY'S SUMMARY EXECUTION OF FUNDS
BEING HELD PURSUANT TO GARNISHMENT SUMMONS.]
Pursuant to this section, an attorney for a judgment
creditor may execute on funds retained by a garnishee under a
garnishment summons served pursuant to chapter 571. No more
than $10,000 may be recovered by a single execution levy
pursuant to this section. When levying upon money or earnings
being retained by a garnishee pursuant to a garnishment summons,
the attorney shall serve a copy of the writ of execution upon
the garnishee by registered or certified mail, or by personal
service. Along with a copy of the writ of execution, the
attorney shall serve upon the garnishee a notice of levy on
garnishee that must be substantially in the form set forth
below. If the judgment creditor paid the garnishee the fee
required by chapter 571, no additional fee must be paid to the
garnishee for the levy. The notice of levy on garnishee may not
be served until the judgment debtor's right to claim an
exemption has expired under chapter 571.
STATE OF MINNESOTA DISTRICT COURT
County of ............. ..........JUDICIAL DISTRICT
File No. ..................
............(Judgment Creditor)
against
..............(Judgment Debtor) NOTICE OF LEVY
and ON GARNISHEE
....................(Garnishee)
PLEASE TAKE NOTICE that pursuant to Minnesota Statutes,
chapter 551, the undersigned as attorney for the judgment
creditor, hereby makes demand and levies execution upon all
money or earnings being retained by you (up to $10,000) pursuant
to the judgment creditor's garnishment summons dated
................ A copy of the writ of execution issued by the
court is enclosed. Upon receipt of this levy, you shall remit
to the judgment creditor's attorney all funds being held by you
pursuant to the garnishment summons. The funds shall be
remitted within 15 days after receipt of this levy.
Date: ............... Attorney for the Judgment Creditor
Address: ........................
..................................
Phone Number: ...................
Attorney I.D. No.: ..............
Sec. 11. [551.042] [MONEY DUE FROM STATE DEPARTMENTS.]
Money due or owing to any entity or person by the state on
account of any employment, work, contract with, or services
provided to any state department or agency is subject to
attachment. The notice of third party levy and disclosure may
be served upon the head of the department or agency in the same
manner as other summons in that court of record, except that
service may not be made by publication. Service of the notice
may also be made by certified mail, return receipt requested.
The disclosure shall be made by the head of the department or
agency, or by some person designated by the head of the
department or agency having knowledge of the facts. If payment
is made pursuant to judgment against the state as a third party,
a certificate of satisfaction to the extent of the payment
endorsed on it shall be delivered to the head of the department
or agency as a voucher for the payment.
Sec. 12. [551.043] [SALARY OF PUBLIC SERVANTS.]
The salary or wages of an official or employee of a county,
town, city, or school district, or any department of these
bodies, is subject to attachment. The notice of third party
levy and disclosure shall be served upon the auditor, treasurer,
or clerk of the body, or head of the department of the body of
which that person is an official or employee. The disclosure
shall be made by the officer or person so served, or by some
person designated by that person having knowledge of the facts.
If payment is made by the county, town, city, or school
district, or any department of these bodies pursuant to a
judgment against it as a third party, a certified copy of the
judgment with a certificate of satisfaction to the extent of the
payment endorsed on it shall be delivered to the treasurer as a
voucher for the payment.
Sec. 13. Minnesota Statutes 1999 Supplement, section
551.05, subdivision 1a, is amended to read:
Subd. 1a. [EXEMPTION NOTICE.] If the writ of execution is
being used by the attorney to levy funds of a judgment debtor
who is a natural person and if the funds to be levied are held
on deposit at any financial institution, the attorney for the
judgment creditor shall serve with the writ of execution two
copies of an exemption notice. The notice must be substantially
in the form set forth below. Failure of the attorney for the
judgment creditor to send the exemption notice renders the
execution levy void, and the financial institution shall take no
action. However, if this subdivision is being used to execute
on funds that have previously been garnished in compliance with
section 571.71, the attorney for judgment creditor is not
required to serve an additional exemption notice. In that
event, the execution levy shall only be effective as to the
funds that were subject to the prior garnishment. Upon receipt
of the writ of execution and exemption notices, the financial
institution shall retain as much of the amount due under section
550.04 as the financial institution has on deposit owing to the
judgment debtor, but not more than 100 percent of the amount
remaining due on the judgment, or $5,000 $10,000, whichever is
less.
The notice informing a judgment debtor that an execution
levy has been used to attach funds of the judgment debtor to
satisfy a claim must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
County of ................ .........JUDICIAL DISTRICT
................(Judgment Creditor)
................(Judgment Debtor)
TO: Judgment Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............. (bank or other financial institution where you
have an account).
Your account balance is $........
The amount being held is $........
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes the Minnesota
Family Investment Program (MFIP), Work First Program, Medical
Assistance (MA), General Assistance (GA), General Assistance
Medical Care (GAMC), Emergency General Assistance (EGA),
Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
(MSA-EA), Supplemental Security Income (SSI), and Energy
Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment compensation, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every judgment debtor's after tax
earnings; or
(11) all of a judgment debtor's after tax earnings below 40
times the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the judgment creditor
is being held in your account to give you a chance to claim an
exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the judgment
creditor's attorney. The address for the judgment creditor's
attorney is set forth below. Both copies must be mailed or
delivered on the same day.
NOTE: You may help resolve your claim faster if you send
to the creditor's attorney written proof or documents that
show why your money is exempt. If you have questions
regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written
proof and the creditor's attorney has questions about your
exemption claim, the creditor's attorney may object to your
claim which may result in a further delay in releasing your
exempt funds.
If they do not get the exemption claim back from you within
14 days of the date they mailed or gave it to you, they will be
free to turn the money over to the attorney for the judgment
creditor. If you are going to claim an exemption, do so as soon
as possible, because your money may be held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the judgment
creditor or sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
the institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is personally served on you,
or within 13 days from the date the objection is mailed or given
to you. You may wish to consult an attorney at once if the
judgment creditor objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the judgment
creditor wrongly objects to an exemption in bad faith, the court
may order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the 11 categories listed above, I am in category number
............ (If more than one category applies, you may fill
in as many as apply.) The source of the exempt funds is the
following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named judgment creditor's attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the judgment creditor's attorney at the address indicated
above.
.............................
DEBTOR
DATED: ............. .............................
.............................
.............................
DEBTOR ADDRESS
.............................
DEBTOR TELEPHONE NUMBER
Sec. 14. Minnesota Statutes 1998, section 551.05,
subdivision 5, is amended to read:
Subd. 5. [NOTICE OF OBJECTION.] (a) The written objection
to the judgment debtor's claim of exemption must be in
substantially the following form:
STATE OF MINNESOTA DISTRICT COURT
County of ............... ..........JUDICIAL DISTRICT
.................(Judgment Creditor) OBJECTION TO
.................(Judgment Debtor) EXEMPTION CLAIM
.................(Garnishee) (Third Party)
The judgment creditor objects to your claim for exemption
from garnishment, levy of execution, order for attachment
(strike inapplicable language) for the following reason(s):
.................................................................
.................................................................
.................................................................
Because of this objection, your financial institution will
retain the funds you claimed to be exempt for an additional ten
days. If you wish to request a hearing on your exemption claim,
you should need to do so within ten days of your receipt of this
objection from the date the objection was personally served on
you, or within 13 days from the date the objection was mailed to
you. You may request a hearing by completing the attached form
and filing it with the court administrator.
1. The court administrator's office shall provide clerical
assistance to help with the writing and filing of a Request for
Hearing by any person not represented by counsel. The court
administrator may charge a fee of $1 for the filing of a Request
for Hearing.
2. Upon the filing of a Request for Hearing, the court
administrator shall schedule the matter for a hearing no later
than five business days from the date of filing. The court
administrator shall forthwith send a completed copy of the
request, including the hearing date, time, and place to the
adverse party and to the financial institution by first class
mail.
3. If it is possible that the financial institution might
not receive the request mailed from the court administrator
within ten days, then you may want to personally deliver a copy
of the request to the financial institution after you have filed
your request with the court.
4. An order stating whether your funds are exempt shall be
issued by the court within three days of the date of the hearing.
If you do not file a Request for Hearing within ten days of
the date you receive this the objection was personally served on
you, or within 13 days from the date the objection was mailed to
you, your financial institution may turn your funds over to your
judgment creditor.
If you file a Request for Hearing and your financial
institution receives it within ten days of the date it received
this objection, your financial institution will retain your
funds claimed to be exempt until otherwise ordered by the court.
..............................
Attorney for Judgment Creditor
Sec. 15. Minnesota Statutes 1998, section 551.06,
subdivision 9, is amended to read:
Subd. 9. [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND
WORKSHEET.] The attorney for the judgment creditor shall serve
upon the judgment debtor's employer a notice of levy on earnings
and an execution earnings disclosure form and an earnings
disclosure worksheet with the writ of execution, that must be
substantially in the form set forth below.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ ......... JUDICIAL DISTRICT
FILE NO. .....
............(Judgment Creditor)
against NOTICE OF LEVY ON
EARNINGS AND DISCLOSURE
............(Judgment Debtor)
and
............(Third Party)
PLEASE TAKE NOTICE that pursuant to Minnesota Statutes,
sections 551.04 and 551.06, the undersigned, as attorney for the
judgment creditor, hereby makes demand and levies execution upon
all earnings due and owing by you (up to $5,000 $10,000) to the
judgment debtor for the amount of the judgment specified below.
A copy of the writ of execution issued by the court is
enclosed. The unpaid judgment balance is $.....
This levy attaches all unpaid nonexempt disposable earnings
owing or to be owed by you and earned or to be earned by the
judgment debtor before and within the pay period in which the
writ of execution is served and within all subsequent pay
periods whose paydays occur within the 70 days after the service
of this levy.
In responding to this levy, you are to complete the
attached disclosure form and worksheet and mail it to the
undersigned attorney for the judgment creditor, together with
your check payable to the above-named judgment creditor, for the
nonexempt amount owed by you to the judgment debtor or for which
you are obligated to the judgment debtor, within the time limits
set forth in the aforementioned statutes.
..................................
Attorney for the Judgment Creditor
..................................
..................................
..................................
Address
(...)..........................
Phone Number
DISCLOSURE
DEFINITIONS
"EARNINGS": For the purpose of execution, "earnings" means
compensation paid or payable to an employee for personal
services or compensation paid or payable to the producer for the
sale of agricultural products; milk or milk products; or fruit
or other horticultural products produced when the producer is
operating a family farm, a family farm corporation, or an
authorized farm corporation, as defined in section 500.24,
subdivision 2, whether denominated as wages, salary, commission,
bonus, or otherwise, and includes periodic payments pursuant to
a pension or retirement.
"DISPOSABLE EARNINGS": Means that part of the earnings of
an individual remaining after the deduction from those earnings
of amounts required by law to be withheld. (Amounts required by
law to be withheld do not include items such as health
insurance, charitable contributions, or other voluntary wage
deductions.)
"PAYDAY": For the purpose of execution, "payday(s)" means
the date(s) upon which the employer pays earnings to the
judgment debtor in the ordinary course of business. If the
judgment debtor has no regular payday, payday(s) means the 15th
and the last day of each month.
THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING
QUESTIONS:
1. Do you now owe, or within 70 days from the date the
execution levy was served on you, will you or may you owe money
to the judgment debtor for earnings?
Yes ....... No .......
2. Does the judgment debtor earn more than $... per week?
(This amount is the federal minimum wage per week.)
Yes ....... No .......
INSTRUCTIONS FOR COMPLETING THE
EARNINGS DISCLOSURE
A. If your answer to either question 1 or 2 is "No," then
you must sign the affirmation on page 2 and return this
disclosure to the judgment creditor's attorney within 20 days
after it was served on you, and you do not need to answer the
remaining questions.
B. If your answers to both questions 1 and 2 are "Yes,"
you must complete this form and the Earnings Disclosure
Worksheet as follows:
For each payday that falls within 70 days from the date the
execution levy was served on you, YOU MUST calculate the
amount of earnings to be retained by completing steps 3
through 11 on page 2, and enter the amounts on the Earnings
Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE.
Each payday, you must retain the amount of earnings listed
in column I on the Earnings Disclosure Worksheet.
You must pay the attached earnings and return this Earnings
Disclosure Form and the Earnings Disclosure Worksheet to
the judgment creditor's attorney and deliver a copy to the
judgment debtor within ten days after the last payday that
falls within the 70-day period.
If the judgment is wholly satisfied or if the judgment
debtor's employment ends before the expiration of the
70-day period, your disclosure and remittance should be
made within ten days after the last payday for which
earnings were attached.
For steps 3 through 11, "columns" refers to columns on the
Earnings Disclosure Worksheet.
3. COLUMN A. Enter the date of judgment debtor's
payday.
4. COLUMN B. Enter judgment debtor's gross earnings
for each payday.
5. COLUMN C. Enter judgment debtor's disposable earnings
for each payday.
6. COLUMN D. Enter 25 percent of disposable earnings.
(Multiply Column C by .25.)
7. COLUMN E. Enter here 40 times the hourly federal
minimum wage ($...) times the number
of work weeks included in each payday.
(Note: If a pay period includes days
in excess of whole work weeks, the additional
days should be counted as a fraction of a
work week equal to the number of work days in
excess of a whole work week divided by the
number of work days in a normal work week.)
8. COLUMN F. Subtract the amount in Column E from the
amount in Column C, and enter here.
9. COLUMN G. Enter here the lesser of the amount in
Column D and the amount in Column F.
10. COLUMN H. Enter here any amount claimed by you as a
setoff, defense, lien, or claim, or any
amount claimed by any other person as an
exemption or adverse interest which would
reduce the amount of earnings owing to the
judgment debtor. (Note: Any indebtedness
to you incurred within ten days prior to your
receipt of the first execution levy on a debt
may not be set off against the earnings
otherwise subject to this levy. Any wage
assignment made by the judgment debtor
within ten days prior to your receipt of
the first execution levy on a debt is void.)
You must also describe your claim(s) and the
claims of others, if known, in the space
provided below the worksheet and state the
name(s) and address(es) of these persons.
Enter zero in Column H if there are no
claims by you or others which would reduce
the amount of earnings owing to the judgment
debtor.
11. COLUMN I. Subtract the amount in Column H from the
amount in Column G and enter here. This is
the amount of earnings that you must retain
for the payday for which the calculations
were made. The total of all amounts entered
in Column I is the amount to be remitted
to the attorney for the judgment creditor.
AFFIRMATION
I, ................... (person signing Affirmation), am the
third party/employer or I am authorized by the third
party/employer to complete this earnings disclosure, and have
done so truthfully and to the best of my knowledge.
Dated: ............ ........................
Signature
........................
Title
........................
Telephone Number
EARNINGS DISCLOSURE WORKSHEET
...................
Judgment Debtor's Name
A B C
Payday Gross Disposable
Date Earnings Earnings
1. ................. $................. $.................
2. ................. .................. ..................
3. ................. .................. ..................
4. ................. .................. ..................
5. ................. .................. ..................
6. ................. .................. ..................
7. ................. .................. ..................
8. ................. .................. ..................
9. ................. .................. ..................
10. ................. .................. ..................
D E F
25% of 40 X Min. Column C
Column C Wage minus
Column E
1. ................. .................. .................
2. ................. .................. .................
3. ................. .................. .................
4. ................. .................. .................
5. ................. .................. .................
6. ................. .................. .................
7. ................. .................. .................
8. ................. .................. .................
9. ................. .................. .................
10. ................. .................. .................
G H I
Lesser of Setoff, Lien, Column G
Column D Adverse minus
and Interest, or Column H
Column F Other Claims
1. ................. .................. .................
2. ................. .................. .................
3. ................. .................. .................
4. ................. .................. .................
5. ................. .................. .................
6. ................. .................. .................
7. ................. .................. .................
8. ................. .................. .................
9. ................. .................. .................
10. ................. .................. .................
TOTAL OF COLUMN I $................
*If you entered any amount in Column H for any payday(s),
you must describe below either your claims, or the claims of
others. For amounts claimed by others, you must both state the
names and addresses of these persons, and the nature of their
claim, if known.
.................................................................
.................................................................
..... ...........................................................
AFFIRMATION
I, ................. (person signing Affirmation), am the
third party or I am authorized by the third party to complete
this earnings disclosure worksheet, and have done so truthfully
and to the best of my knowledge.
.................
Title
Dated: ........ ............... (...)............
Signature Phone Number
Sec. 16. Minnesota Statutes 1999 Supplement, section
551.06, subdivision 10, is amended to read:
Subd. 10. [NOTICE OF LEVY ON EARNINGS, DISCLOSURE, AND
WORKSHEET FOR CHILD SUPPORT JUDGMENT.] The attorney for the
judgment creditor shall serve upon the judgment debtor's
employer a notice of levy on earnings and an execution earnings
disclosure form and an earnings disclosure worksheet with the
writ of execution, that must be substantially in the form set
forth below.
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ ......... JUDICIAL DISTRICT
FILE NO. .....
............(Judgment Creditor)
against NOTICE OF LEVY ON
EARNINGS AND DISCLOSURE
............(Judgment Debtor)
and
............(Third Party)
PLEASE TAKE NOTICE that pursuant to Minnesota Statutes,
sections 551.04 and 551.06, the undersigned, as attorney for the
judgment creditor, hereby makes demand and levies execution upon
all earnings due and owing by you (up to $5,000 $10,000) to the
judgment debtor for the amount of the judgment specified below.
A copy of the writ of execution issued by the court is
enclosed. The unpaid judgment balance is $.....
This levy attaches all unpaid nonexempt disposable earnings
owing or to be owed by you and earned or to be earned by the
judgment debtor before and within the pay period in which the
writ of execution is served and within all subsequent pay
periods whose paydays occur within the 70 days after the service
of this levy.
In responding to this levy, you are to complete the
attached disclosure form and worksheet and mail it to the
undersigned attorney for the judgment creditor, together with
your check payable to the above-named judgment creditor, for the
nonexempt amount owed by you to the judgment debtor or for which
you are obligated to the judgment debtor, within the time limits
set forth in the aforementioned statutes.
..................................
Attorney for the Judgment Creditor
..................................
..................................
..................................
Address
(...)..........................
Phone Number
DISCLOSURE
DEFINITIONS
"EARNINGS": For the purpose of execution, "earnings" means
compensation paid or payable to an employee for personal
services or compensation paid or payable to the producer for the
sale of agricultural products; milk or milk products; or fruit
or other horticultural products produced when the producer is
operating a family farm, a family farm corporation, or an
authorized farm corporation, as defined in section 500.24,
subdivision 2, whether denominated as wages, salary, commission,
bonus, or otherwise, and includes periodic payments pursuant to
a pension or retirement, workers' compensation, or reemployment
compensation.
"DISPOSABLE EARNINGS": Means that part of the earnings of
an individual remaining after the deduction from those earnings
of amounts required by law to be withheld. (Amounts required by
law to be withheld do not include items such as health
insurance, charitable contributions, or other voluntary wage
deductions.)
"PAYDAY": For the purpose of execution, "payday(s)" means
the date(s) upon which the employer pays earnings to the debtor
in the ordinary course of business. If the judgment debtor has
no regular payday, payday(s) means the 15th and the last day of
each month.
THE THIRD PARTY/EMPLOYER MUST ANSWER THE FOLLOWING QUESTION:
(1) Do you now owe, or within 70 days from the date the
execution levy was served on you, will you or may you owe money
to the judgment debtor for earnings?
....... .......
Yes No
INSTRUCTIONS FOR COMPLETING THE
EARNINGS DISCLOSURE
A. If your answer to question 1 is "No," then you must
sign the affirmation below and return this disclosure to the
judgment creditor's attorney within 20 days after it was served
on you, and you do not need to answer the remaining questions.
B. If your answer to question 1 is "Yes," you must
complete this form and the Earnings Disclosure Worksheet as
follows:
For each payday that falls within 70 days from the date the
execution levy was served on you, YOU MUST calculate the
amount of earnings to be retained by completing steps 2
through 8 on page 2, and enter the amounts on the Earnings
Disclosure Worksheet. UPON REQUEST, THE EMPLOYER MUST
PROVIDE THE DEBTOR WITH INFORMATION AS TO HOW THE
CALCULATIONS REQUIRED BY THIS DISCLOSURE WERE MADE.
Each payday, you must retain the amount of earnings listed
in column G on the Earnings Disclosure Worksheet.
You must pay the attached earnings and return this earnings
disclosure form and the Earnings Disclosure Worksheet to
the judgment creditor's attorney and deliver a copy of the
disclosure and worksheet to the judgment debtor within ten
days after the last payday that falls within the 70-day
period. If the judgment is wholly satisfied or if the
judgment debtor's employment ends before the expiration of
the 70-day period, your disclosure and remittance should be
made within ten days after the last payday for which
earnings were attached.
For steps 2 through 8, "columns" refers to columns on the
Earnings Disclosure Worksheet.
(2) COLUMN A. Enter the date of judgment debtor's payday.
(3) COLUMN B. Enter judgment debtor's gross earnings for
each payday.
(4) COLUMN C. Enter judgment debtor's disposable earnings
for each payday.
(5) COLUMN D. Enter either 50, 55, 60, or 65 percent of
disposable earnings, based on which of the following
descriptions fits the child support judgment debtor:
(a) 50 percent of the judgment debtor's disposable income,
if the judgment debtor is supporting a spouse or dependent child
and the judgment is 12 weeks old or less (12 weeks to be
calculated to the beginning of the work week in which the
execution levy is received);
(b) 55 percent of the judgment debtor's disposable income,
if the judgment debtor is supporting a spouse or dependent
child, and the judgment is over 12 weeks old (12 weeks to be
calculated to the beginning of the work week in which the
execution levy is received);
(c) 60 percent of the judgment debtor's disposable income,
if the judgment debtor is not supporting a spouse or dependent
child and the judgment is 12 weeks old or less (12 weeks to be
calculated to the beginning of the work week in which the
execution levy is received); or
(d) 65 percent of the judgment debtor's disposable income,
if the judgment debtor is not supporting a spouse or dependent
child, and the judgment is over 12 weeks old (12 weeks to be
calculated to the beginning of the work week in which the
execution levy is received). (Multiply column C by .50, .55,
.60, or .65, as appropriate.)
(6) COLUMN E. Enter here any amount claimed by you as a
setoff, defense, lien, or claim, or any amount claimed by any
other person as an exemption or adverse interest that would
reduce the amount of earnings owing to the judgment debtor.
(Note: Any indebtedness to you incurred within ten days prior
to your receipt of the first execution levy on a debt may not be
set off against the earnings otherwise subject to this levy.
Any wage assignment made by the judgment debtor within ten days
prior to your receipt of the first execution levy on a debt is
void.)
You must also describe your claim(s) and the claims of
others, if known, in the space provided below the worksheet and
state the name(s) and address(es) of these persons.
Enter zero in column E if there are no claims by you or
others that would reduce the amount of earnings owing to the
judgment debtor.
(7) COLUMN F. Subtract the amount in column E from the
amount in column D and enter here. This is the amount of
earnings that you must remit for the payday for which the
calculations were made.
AFFIRMATION
I, ................... (person signing Affirmation), am the
third party/employer or I am authorized by the third
party/employer to complete this earnings disclosure, and have
done so truthfully and to the best of my knowledge.
Dated: ............ ............................
Signature
............................
Title
............................
Telephone Number
EARNINGS DISCLOSURE WORKSHEET ...................
Debtor's Name
A B C
Payday Gross Disposable
Date Earnings Earnings
1. ........ $....... $.........
2. ........ ........ ..........
3. ........ ........ ..........
4. ........ ........ ..........
5. ........ ........ ..........
6. ........ ........ ..........
7. ........ ........ ..........
8. ........ ........ ..........
9. ........ ........ ..........
10. ........ ........ ..........
D E F
Either 50, 55, Setoff, Lien, Column D
60, or 65% of Adverse minus
Column C Interest, or Column E
Other Claims
1. ........ .......... ..........
2. ........ .......... ..........
3. ........ .......... ..........
4. ........ .......... ..........
5. ........ .......... ..........
6. ........ .......... ..........
7. ........ .......... ..........
8. ........ .......... ..........
9. ........ .......... ..........
10. ........ .......... ..........
TOTAL OF COLUMN F $............
*If you entered any amount in column E for any payday(s),
you must describe below either your claims, or the claims of
others. For amounts claimed by others, you must both state the
names and addresses of such persons, and the nature of their
claim, if known.
.................................................................
.................................................................
.................................................................
AFFIRMATION
I, ................. (person signing Affirmation), am the
third party or I am authorized by the third party to complete
this earnings disclosure worksheet, and have done so truthfully
and to the best of my knowledge.
.................
Signature
Dated: ........ ............... (...)............
Title Phone Number
Sec. 17. Minnesota Statutes 1998, section 571.72,
subdivision 2, is amended to read:
Subd. 2. [SERVICE OF A GARNISHMENT SUMMONS.] To enforce a
claim asserted in a civil action venued in a court of record, a
garnishment summons may be issued by a creditor and served upon
the garnishee in the same manner as other summons in that court
of record, except that service may not be made by publication.
Service of a garnishment summons on the garnishee may also be
made by certified mail, return receipt requested. A garnishment
summons served by certified mail is effective if served at the
garnishee's regular place of business. The effective date of
service by certified mail is the time of receipt by the
garnishee. A single garnishment summons may be addressed to two
or more garnishees but must state whether each is summoned
separately or jointly.
The garnishment summons must state:
(1) the full name of the debtor, the debtor's last known
mailing address, and the amount of the claim that remains
unpaid;
(2) the date of the entry of judgment against the debtor or
that the debtor is in default pursuant to Rule 55.01 of the
Minnesota Rules of Civil Procedure for the District Courts.
Where there is a prejudgment garnishment pursuant to section
571.93, the garnishment summons must include a copy of the court
order;
(3) if the garnishment is on any indebtedness, money, or
property other than earnings, the garnishee shall serve upon the
creditor and upon the debtor within 20 days after service of the
garnishment summons, a written disclosure, of the garnishee's
indebtedness, money, or other property owing to the debtor and
answers to all written interrogatories that are served with the
garnishment summons. The garnishment summons shall also state
that if the garnishment is on earnings and the debtor has
garnishable earnings, the garnishee shall serve the disclosure
within ten days of the last payday to occur within the 70 days
after the date of service of the garnishment summons;
(4) that the creditor shall not require disclosure of the
disposable earnings, indebtedness, money, or property of debtor
in the garnishee's possession or under the garnishee's control
in excess of 110 percent of the amount of the claim that remains
unpaid;
(5) that the garnishee shall retain disposable earnings,
indebtedness, money, or property of the debtor in the
garnishee's possession or under the garnishee's control not in
excess of 110 percent of the amount of the claim that remains
unpaid, until the creditor causes a writ of execution to be
served upon the garnishee, until the debtor authorizes release
to the creditor, until the creditor authorizes release to the
debtor, upon court order, or by operation of law;
(6) that after the expiration of the period of time
specified in section 571.79 from the date of service of the
garnishment summons, the garnishee's retention obligation
automatically expires;
(7) that an assignment of wages made by the debtor within
ten days before the service of the first garnishment summons on
a debt is void and that any indebtedness to the garnishee
incurred with ten days before the service of the first
garnishment summons on a debt may not be set off against amounts
otherwise subject to the garnishment.
Sec. 18. Minnesota Statutes 1998, section 571.74, is
amended to read:
571.74 [GARNISHMENT SUMMONS AND NOTICE TO DEBTOR.]
The garnishment summons and notice to debtor must be
substantially in the following form. The notice to debtor must
be in no smaller than 14-point type.
GARNISHMENT SUMMONS
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................. ..........JUDICIAL DISTRICT
.......................(Creditor)
.......................(Debtor) UNPAID BALANCE........
.......................(Debtor's Address) Date of Entry
.......................(Garnishee) of Judgment (or) Subject
to Minnesota Statutes,
section 571.71, subd. 2
GARNISHMENT SUMMONS
The State of Minnesota
To the Garnishee named above:
You are hereby summoned and required to serve upon the
creditor's attorney (or the creditor if not represented by an
attorney) and on the debtor within 20 days after service of this
garnishment summons upon you, a written disclosure, of the
indebtedness, money, or other property that you owe to the
debtor the nonexempt indebtedness, money, or other property due
or belonging to the debtor and owing by you or in your
possession or under your control and answers to all written
interrogatories that are served with the garnishment summons.
However, if the garnishment is on earnings and the debtor has
garnishable earnings, you shall serve the completed disclosure
form on the creditor's attorney, or the creditor if not
represented by an attorney, within ten days of the last payday
to occur within the 70 days after the date of the service of
this garnishment summons. "Payday" means the day which you pay
earnings in the ordinary course of business. If the debtor has
no regular paydays, "payday" means the 15th day and the last day
of each month.
Your disclosure need not exceed 110 percent of the amount
of the creditor's claim that remains unpaid.
You shall retain garnishable earnings, other indebtedness,
money, or other property in your possession in an amount not to
exceed 110 percent of the creditor's claim until such time as
the creditor causes a writ of execution to be served upon you,
until the debtor authorizes you in writing to release the
property to the creditor, or until the expiration of ...... days
from the date of service of this garnishment summons upon you,
at which time you shall return the disposable earnings, other
indebtedness, money, or other property to the debtor.
EARNINGS
In the event you are summoned as a garnishee because you
owe "earnings" (as defined on the Earnings Garnishment
Disclosure form attached to this Garnishment Summons, if
applicable) to the debtor, then you are required to serve upon
the creditor's attorney, or the creditor if not represented by
an attorney, a written earnings disclosure form within the time
limit set forth above.
In the case of earnings you are further required to retain
in your possession all unpaid nonexempt disposable earnings owed
or to be owed by you and earned or to be earned to the debtor
within the pay period in which this garnishment summons is
served and within all subsequent pay periods whose paydays
(defined above) occur within the 70 days after the date of
service of this garnishment summons.
Any assignment of earnings made by the debtor to any party
within ten days before the receipt of the first garnishment on a
debt is void. Any indebtedness to you incurred by the debtor
within the ten days before the receipt of the first garnishment
on a debt may not be set off against amounts otherwise subject
to the garnishment.
You are prohibited by law from discharging or disciplining
the debtor because the debtor's earnings have been subject to
garnishment.
This Garnishment Summons includes:
(check applicable box)
..... Earnings garnishment
(see attached Earnings Disclosure Form)
..... Nonearnings garnishment
(see attached Nonearnings Disclosure Form)
..... Both Earnings and Nonearnings garnishment
(see both attached Earnings and Nonearnings
Disclosure Form)
NOTICE TO DEBTOR
A Garnishment Summons, Earnings Garnishment Disclosure
form, Nonwage Garnishment Disclosure form, Garnishment Exemption
Notices and/or written Interrogatories (strike out if not
applicable), copies of which are hereby served on you, were
served upon the Garnishee by delivering copies to the
Garnishee. The Garnishee was paid $15.
Dated: ............... ...............................
Attorney for Creditor
(or creditor)
...............................
...............................
...............................
Address
...............................
Telephone
...............................
Attorney I.D. No.
Sec. 19. [571.771] [MONEY DUE FROM STATE DEPARTMENTS.]
Money due or owing to any entity or person by the state on
account of any employment, work, contract with, or services
provided to any state department or agency is subject to
garnishment. The garnishment summons may be served upon the
head of the department or agency in the same manner as other
summons in that court of record except that service may not be
made by publication. Service of the garnishment summons may
also be made by certified mail, return receipt requested. The
disclosure must be made by the head of the department or agency,
or by some person designated by the head having knowledge of the
facts. If payment is made pursuant to judgment against the
state as garnishee, a certificate of satisfaction to the extent
of the payment endorsed on it must be delivered to the head of
the department or agency as a voucher for the payment.
Sec. 20. Minnesota Statutes 1998, section 571.79, is
amended to read:
571.79 [DISCHARGE OF A GARNISHEE.]
Subject to sections 571.78 and 571.80 Except as provided in
paragraph (h), the garnishee, after disclosure, shall be
discharged of any further retention obligation to the creditor
with respect to a specific garnishment summons when one of the
following conditions are met:
(a) The garnishee discloses that the garnishee is not
indebted to the debtor or does not possess any money or other
property belonging to the debtor that is attachable as defined
in section 571.73, subdivision 3. The disclosure is conclusive
against the creditor and discharges the garnishee from any
further obligation to the creditor other than to retain all
nonexempt disposable earnings, indebtedness, money, and property
of the debtor which was disclosed.
(b) The garnishee discloses that the garnishee is indebted
to the debtor as indicated on the garnishment disclosure form.
The disclosure is conclusive against the creditor and discharges
the garnishee from any further obligation to the creditor other
than to retain all nonexempt disposable earnings, indebtedness,
money, and property of the debtor that was disclosed.
(c) If the garnishee was served with a garnishment summons
before entry of judgment against the debtor by the creditor in
the civil action and the garnishee has retained any disposable
earnings, indebtedness, money, or property of the debtor, 270
days after the garnishment summons is served the garnishee is
discharged and the garnishee shall return any disposable
earnings, indebtedness, money, and property to the debtor.
(d) If the garnishee was served with a garnishment summons
after entry of judgment against the debtor by the creditor in
the civil action and the garnishee has retained any disposable
earnings, indebtedness, money, or property of the debtor, 180
days after the garnishment summons is served the garnishee is
discharged and the garnishee shall return any disposable
earnings, other indebtedness, money, and property to the debtor.
(e) If the garnished indebtedness, money, or other property
is destroyed without any negligence of the garnishee, the
garnishee is discharged of any liability to the creditor for
nondelivery of the garnished indebtedness, money, and other
property.
(f) The court may, upon motion of an interested person,
discharge the garnishee as to any disposable earnings, other
indebtedness, money, and property in excess of the amount that
may be required to satisfy the creditor's claim.
(g) The discharge of the garnishee pursuant to paragraph
(a), (b), (c), or (d) is not determinative of the rights of the
creditor, debtor, or garnishee with respect to any other
garnishment summons, even another garnishment summons involving
the same parties, unless and to the extent adjudicated pursuant
to the procedures described in paragraph (h).
(h) The garnishee is not discharged if within 20 days of
the service of the garnishee's disclosure or the return to the
debtor of any disposable earnings, indebtedness money, or other
property of the debtor, whichever is later, an interested person
(1) serves a motion scheduled to be heard within 30 days of the
service of the motion relating to the garnishment, or (2) serves
a motion scheduled to be heard within 30 days of the service of
the motion for leave to file a supplemental complaint against
the garnishee, as provided under section 571.75, subdivision 4,
and the court upon proper showing vacates the discharge of the
garnishee.
Sec. 21. Minnesota Statutes 1998, section 571.82,
subdivision 1, is amended to read:
Subdivision 1. [JUDGMENT UPON FAILURE TO DISCLOSE.] If a
garnishee fails to serve a disclosure as required in this
chapter, the court may render judgment against the garnishee,
upon motion by the creditor, for an amount not exceeding the
creditor's claim against the debtor or 110 percent of the amount
claimed in the garnishment summons, whichever is less. The
motion shall be supported by an affidavit of the facts and shall
be served upon both the debtor and the garnishee. The court
upon good cause shown may remove the default and permit the
garnishee to disclose on just terms.
Sec. 22. Minnesota Statutes 1999 Supplement, section
571.912, is amended to read:
571.912 [FORM OF EXEMPTION NOTICE.]
The notice informing a debtor that an order for attachment,
garnishment summons, or levy by execution has been used to
attach funds of the debtor to satisfy a claim must be
substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ................ ........JUDICIAL DISTRICT
........................(Creditor)
........................(Debtor)
TO: Debtor EXEMPTION NOTICE
An order for attachment, garnishment summons, or levy of
execution (strike inapplicable language) has been served on
............ (bank or other financial institution)
............... where you have an account.
Your account balance is $.............
The amount being held is $............
However, all or a portion of the funds in your account will
normally be exempt from creditors' claims if they are in one of
the following categories:
(1) relief based on need. This includes the Minnesota
Family Investment Program (MFIP), Emergency Assistance (EA),
Work First Program, Medical Assistance (MA), General Assistance
(GA), General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA
Emergency Assistance (MSA-EA), Supplemental Security Income
(SSI), and Energy Assistance;
(2) Social Security benefits (Old Age, Survivors, or
Disability Insurance);
(3) reemployment compensation, workers' compensation, or
veterans' benefits;
(4) an accident, disability, or retirement pension or
annuity;
(5) life insurance proceeds;
(6) the earnings of your minor child and any child support
paid to you; or
(7) money from a claim for damage or destruction of exempt
property (such as household goods, farm tools, business
equipment, a mobile home, or a car).
The following funds are also exempt:
(8) all earnings of a person in category (1);
(9) all earnings of a person who has received relief based
on need, or who has been an inmate of a correctional
institution, within the last six months;
(10) 75 percent of every debtor's after tax earnings; and
(11) all of a debtor's after tax earnings below 40 times
the federal minimum wage.
TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
Categories (10) and (11): 20 days
Categories (8) and (9): 60 days
All others: no time limit, as long as funds are traceable
to the exempt source. (In tracing funds, the first-in,
first-out method is used. This means money deposited first is
spent first.) The money being sought by the creditor is being
held in your account to give you a chance to claim an exemption.
TO CLAIM AN EXEMPTION:
Fill out, sign, and mail or deliver one copy of the
attached exemption claim form to the institution which sent you
this notice and mail or deliver one copy to the creditor's
attorney. In the event that there is no attorney for the
creditor, then such notice shall be sent directly to the
creditor. The address for the creditor's attorney or the
creditor is set forth below. Both copies must be mailed or
delivered on the same day.
NOTE: You may help resolve your claim faster if you send
to the creditor's attorney written proof or documents that
show why your money is exempt. If you have questions
regarding the documents to send as proof of an exemption,
call the creditor's attorney. If you do not send written
proof and the creditor's attorney has questions about your
exemption claim, the creditor's attorney may object to your
claim which may result in a further delay in releasing your
exempt funds.
If they do not get the exemption claim back from you within
14 days of the date they mailed or gave it to you, they will be
free to turn the money over to the sheriff or the creditor. If
you are going to claim an exemption, do so as soon as possible,
because your money may be held until it is decided.
IF YOU CLAIM AN EXEMPTION:
(1) nonexempt money can be turned over to the creditor or
sheriff;
(2) the financial institution will keep holding the money
claimed to be exempt; and
(3) seven days after receiving your exemption claim, the
financial institution will release the money to you unless
before then it receives an objection to your exemption claim.
IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
The institution will hold the money until a court decides
if your exemption claim is valid, BUT ONLY IF the institution
gets a copy of your court motion papers asserting the exemption
WITHIN TEN DAYS after the objection is personally served on you,
or within 13 days from the date the objection is mailed or given
to you. You may wish to consult an attorney at once if the
creditor objects to your exemption claim.
MOTION TO DETERMINE EXEMPTION:
At any time after your funds have been held, you may ask
for a court decision on the validity of your exemption claim by
filing a request for hearing which may be obtained at the office
of the court administrator of the above court.
PENALTIES:
If you claim an exemption in bad faith, or if the creditor
wrongly objects to an exemption in bad faith, the court may
order the person who acted in bad faith to pay costs, actual
damages, attorney fees, and an additional amount of up to $100.
.............................
.............................
.............................
.............................
Name and address of (Attorney
for) Judgment Creditor
EXEMPTION:
(If you claim an exemption complete the following):
(a) Amount of exemption claim.
/ / I claim ALL the funds being held are exempt.
/ / I claim SOME of the funds being held are exempt.
The exempt amount is $............
(b) Basis for exemption.
Of the eleven categories listed above, I am in category
number ............ (If more than one category applies, you may
fill in as many as apply.) The source of the exempt funds is
the following:
.............................................................
.............................................................
.............................................................
(If the source is a type of relief based on need, list the
case number and county:
case number: ...............;
county: ....................)
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above named creditor or its attorney only
whether or not I am or have been a recipient of relief based on
need or an inmate of a correctional institute within the last
six months.
I have mailed or delivered a copy of the exemption notice
to the creditor's attorney at the address indicated above.
DATED: ............. .............................
DEBTOR
.............................
DEBTOR ADDRESS
.............................
DEBTOR TELEPHONE NUMBER
Sec. 23. Minnesota Statutes 1998, section 571.914,
subdivision 2, is amended to read:
Subd. 2. [NOTICE OF OBJECTION.] (a) The written objection
to the debtor must be in substantially the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF .................... ..........JUDICIAL DISTRICT
....................(Creditor)
....................(Debtor) CREDITOR'S OBJECTION
....................(Garnishee) TO EXEMPTION CLAIM
The creditor objects to your claim for exemption from
garnishment, levy of execution, order for attachment (strike
inapplicable language) for the following reason(s):
.................................................................
.................................................................
.................................................................
Because of this objection, your financial institution will
retain the funds you claimed to be exempt for an additional ten
days. If you wish to request a hearing on your exemption claim,
you should need to do so within ten days of your receipt of this
from the date the objection was personally served on you, or
within 13 days of the date the objection was mailed to you. You
may request a hearing by completing the attached form and filing
it with the court administrator.
1. The court shall provide clerical assistance to help
with the writing and filing of a Request for Hearing by any
person not represented by counsel. The court administrator may
charge a fee of $1 for the filing of a Request for Hearing.
2. Upon the filing of a Request for Hearing, the clerk
shall schedule the matter for a hearing no later than five
business days from the date of filing. The court administrator
shall forthwith send a completed copy of the request, including
the hearing date, time, and place to the adverse party and to
the financial institution by first class mail.
3. If it is possible that the financial institution might
not receive the request mailed from the court administrator
within ten days, then you may want to personally deliver a copy
of the request to the financial institution after you have filed
your request with the court.
4. An order stating whether your funds are exempt shall be
issued by the court within three days of the date of the hearing.
If you do not file a Request for Hearing within ten days of
the date you receive this objection the objection was personally
served on you, or within 13 days from the date the objection was
mailed to you, your financial institution may turn your funds
over to your creditor.
If you file a Request for Hearing and your financial
institution receives it within ten days of the date it received
this objection, your financial institution will retain your
funds claimed to be exempt until otherwise ordered by the court,
or until the garnishment lapses pursuant to Minnesota Statutes,
section 571.79.
..................................
(CREDITOR OR CREDITOR'S ATTORNEY.)
Sec. 24. Minnesota Statutes 1999 Supplement, section
571.925, is amended to read:
571.925 [FORM OF NOTICE.]
The ten-day notice informing a debtor that a garnishment
summons may be used to garnish the earnings of an individual
must be substantially in the following form:
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ............. ........... JUDICIAL DISTRICT
....................(Creditor)
against
GARNISHMENT EXEMPTION
....................(Debtor) NOTICE AND NOTICE OF
and INTENT TO GARNISH EARNINGS
WITHIN TEN DAYS
....................(Garnishee)
PLEASE TAKE NOTICE that a garnishment summons or levy may
be served upon your employer or other third parties, without any
further court proceedings or notice to you, ten days or more
from the date hereof. Some or all of your earnings are exempt
from garnishment. If your earnings are garnished, your employer
must show you how the amount that is garnished from your
earnings was calculated. You have the right to request a
hearing if you claim the garnishment is incorrect.
Your earnings are completely exempt from garnishment if you
are now a recipient of relief based on need, if you have been a
recipient of relief within the last six months, or if you have
been an inmate of a correctional institution in the last six
months.
Relief based on need includes the Minnesota Family
Investment Program (MFIP), Emergency Assistance (EA), Work First
Program, Medical Assistance (MA), General Assistance (GA),
General Assistance Medical Care (GAMC), Emergency General
Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA
Emergency Assistance (MSA-EA), Supplemental Security Income
(SSI), and Energy Assistance.
If you wish to claim an exemption, you should fill out the
appropriate form below, sign it, and send it to the creditor's
attorney and the garnishee.
You may wish to contact the attorney for the creditor in
order to arrange for a settlement of the debt or contact an
attorney to advise you about exemptions or other rights.
PENALTIES
(1) Be advised that even if you claim an exemption, a
garnishment summons may still be served on your employer.
If your earnings are garnished after you claim an
exemption, you may petition the court for a determination
of your exemption. If the court finds that the creditor
disregarded your claim of exemption in bad faith, you will
be entitled to costs, reasonable attorney fees, actual
damages, and an amount not to exceed $100.
(2) HOWEVER, BE WARNED if you claim an exemption, the
creditor can also petition the court for a determination of
your exemption, and if the court finds that you claimed an
exemption in bad faith, you will be assessed costs and
reasonable attorney's fees plus an amount not to exceed
$100.
(3) If after receipt of this notice, you in bad faith take
action to frustrate the garnishment, thus requiring the
creditor to petition the court to resolve the problem, you
will be liable to the creditor for costs and reasonable
attorney's fees plus an amount not to exceed $100.
DATED: ............ ........................
(Attorney for) Creditor
........................
Address
........................
Telephone
DEBTOR'S EXEMPTION CLAIM NOTICE
I hereby claim that my earnings are exempt from garnishment
because:
(1) I am presently a recipient of relief based on need.
(Specify the program, case number, and the county from
which relief is being received.)
................ ...................... ...............
Program Case Number (if known) County
(2) I am not now receiving relief based on need, but I have
received relief based on need within the last six months.
(Specify the program, case number, and the county from
which relief has been received.)
................ ...................... ...............
Program Case Number (if known) County
(3) I have been an inmate of a correctional institution
within the last six months. (Specify the correctional
institution and location.)
........................... ..........................
Correctional Institution Location
I hereby authorize any agency that has distributed relief
to me or any correctional institution in which I was an inmate
to disclose to the above-named creditor or the creditor's
attorney only whether or not I am or have been a recipient of
relief based on need or an inmate of a correctional institution
within the last six months. I have mailed or delivered a copy
of this form to the creditor or creditor's attorney.
........................... .........................
Date Debtor
.........................
Address
.........................
Debtor Telephone Number
Sec. 25. [REPEALER.]
Minnesota Statutes 1998, section 571.80, is repealed.
Presented to the governor April 11, 2000
Signed by the governor April 14, 2000, 2:13 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes