2006 Minnesota Statutes

CHAPTER 550. EXECUTIONS, REDEMPTION, EXEMPTIONS

550.01 ENFORCEMENT OF JUDGMENT.
The party in whose favor a judgment is given, or the assignee of such judgment, may
proceed to enforce the same, at any time within ten years after the entry thereof, in the manner
provided by law.
History: (9416) RL s 4287

550.011 JUDGMENT DEBTOR DISCLOSURE.
Unless the parties have otherwise agreed, if a judgment has been docketed in district court
for at least 30 days, and the judgment is not satisfied, the district court in the county in which the
judgment originated shall, upon request of the judgment creditor, order the judgment debtor to
mail by certified mail to the judgment creditor information as to the nature, amount, identity, and
locations of all the debtor's assets, liabilities, and personal earnings. The information must be
provided on a form prescribed by the Supreme Court, and the information shall be sufficiently
detailed to enable the judgment creditor to obtain satisfaction of the judgment by way of execution
on nonexempt assets and earnings of the judgment debtor. The order must contain a notice that
failure to complete the form and mail it to the judgment creditor within ten days after service of
the order may result in a citation for civil contempt of court. Cash bail posted as a result of being
cited for civil contempt of court order under this section may be ordered payable to the creditor to
satisfy the judgment, either partially or fully.
History: 1993 c 321 s 6

550.02 JUDGMENTS; METHODS OF ENFORCEMENT.
Where a judgment requires the payment of money, or the delivery of real or personal
property, it may be enforced in those respects by execution. Where it requires the performance
of any other act, a certified copy of the judgment may be served upon the party against whom
it is given, or the person or officer who is required thereby or by law to obey the same . A
person so served who refuses may be punished by the court as for contempt, and the individual's
obedience thereto enforced.
History: (9417) RL s 4288; 1986 c 444

550.03 KINDS OF EXECUTION.
There shall be two kinds of executions, one against the property of the judgment debtor,
and the other for the delivery of real or personal property, or such delivery with damages for
detaining, or for taking and withholding, the same.
History: (9418) RL s 4289

550.04 EXECUTION, HOW ISSUED; CONTENTS.
The execution shall be under the seal of the court, subscribed by the court administrator,
directed to the sheriff, to the coroner, if the sheriff be a party or interested, or to the judgment
creditor or the judgment creditor's attorney, if issued under section 550.041, and endorsed by the
party applying therefor or the party's attorney. It shall refer intelligibly to the judgment, stating
the court, the county where the judgment roll or transcript is filed, the names of the parties,
the amount of the judgment, if it be for money, the amount actually due thereon, together with
accrued interest to the date of issuance and the amount of daily interest accruing during the
calendar year, and the time of docketing in the county to which the execution is issued. When
issued to the sheriff or coroner, it shall require the officer substantially as follows:
(1) if it be against the property of the judgment debtor, to satisfy the judgment, with interest,
out of the debtor's personal property, and, if sufficient personal property cannot be found, out
of the real property belonging to the debtor on the day when the judgment was docketed in the
county, or at any time thereafter not exceeding ten years;
(2) if real property has been attached, and judgment rendered in favor of the plaintiff in the
same action, the execution thereon may also direct a sale of all the property which the defendant
had in such real estate at the time it was so attached, or at any time after entry of judgment not
exceeding ten years; in such case, if after the attachment the judgment creditor has paid taxes on
the real property and filed with the court administrator the tax receipt, it shall be attached to the
judgment roll, and the execution shall also state that it has been filed, and the date and amount
thereof, and the date of filing; and, if the property be sold under the execution, the proceeds, after
deducting the expenses of sale, shall be first applied to the payment of the amount so paid for
taxes, with interest;
(3) if it be against real or personal property in the hands of personal representatives, heirs,
devisees, legatees, trustees, or tenants of real property, it shall require the officer to satisfy the
judgment, with interest, out of such property;
(4) if it be against defendants jointly indebted on a contract, a part of whom only have been
summoned in the action, it shall issue in form against all; but the party causing it to be issued,
or the party's attorney, shall endorse thereon the names of those defendants who have not been
summoned, and it shall not be levied upon the sole property of any such defendant; but it may
be levied upon the personal property owned by such defendant as a partner with any or all of
the other defendants;
(5) if it be for delivery of the possession of real or personal property, it shall require the
officer to deliver possession of the same, particularly describing it, to the party entitled thereto;
and it may, at the same time, require the officer to satisfy, out of the personal property of the
party against whom the judgment was rendered, any costs, charges, damages, rents, or profits
recovered thereby, and the value of the property for which the judgment was recovered, to be
specified therein, if a delivery thereof cannot be had; and if sufficient personal property cannot
be found, then out of the real property, as provided in clause (1), and in that respect it shall be
deemed an execution against property.
History: (9419) RL s 4290; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 273 s 4

550.041 [Repealed, 1990 c 606 art 3 s 39]

550.05 [Repealed, 1990 c 606 art 3 s 39]

550.051 TERM OF WRIT OF EXECUTION; INVENTORY; SATISFACTION.
    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.
    Subd. 2. Satisfaction. In case of satisfaction, either partial or in full, the officer shall
return the writ to the court administrator originally issuing it and return a duplicate copy of it to
the court administrator of the officer's own county, if execution is upon judgment transcripted
from another county. The court administrator to whom a duplicate is returned shall enter the
record of the satisfaction upon the judgment docket and note in the margin that the entry is
made upon "duplicate return." If the writ of execution is being returned when the judgment has
been wholly satisfied, the writ shall be filed with the court administrator within ten days after
the final payment or within 30 days if the payment is by check or other noncertified funds. If the
writ of execution is being returned partially satisfied, the officer shall include a statement setting
forth the dates and amounts of payments made upon the judgment after the most recent partial
satisfaction filed, if any.
History: 1990 c 606 art 1 s 1; 2000 c 405 s 1

550.06 EXECUTION AFTER DEATH.
After the expiration of one year from the death of a party against whom judgment has been
rendered, execution thereon may be issued against any property upon which such judgment was a
lien at the time of the party's death, and may be executed in the same manner and with like effect
as if the party were living.
History: (9421) RL s 4292; 1986 c 444

550.07 ISSUANCE OF EXECUTION.
When the execution is against the personal property or money of the judgment debtor, it may
be issued to the sheriff of any county from the district court where the judgment was originally
docketed. When it requires the delivery of real property, it shall be issued to the sheriff of the
county where the property or some part thereof is situated after the judgment is docketed in that
county. Executions may be issued at the same time to different counties.
History: (9422) RL s 4293; 1980 c 388 s 1; 1998 c 254 art 2 s 60

550.08 EXECUTION AGAINST PROPERTY, HOW EXECUTED.
The officer shall execute the writ against the property of the judgment debtor by levying
upon the same, collecting the things in action, or selling the same if the court so orders, selling
the other property, except as provided in section 550.09, and paying to the judgment creditor the
proceeds, or so much thereof as will satisfy the execution.
History: (9423) RL s 4294

550.09 LEVY ON MONEY.
When coin of the United States, or bills or other evidence of debt issued by the United States
or by any moneyed corporation and circulated as money, are seized upon execution, the officer
shall pay and return the same as so much money collected.
History: (9424) RL s 4295

550.10 PROPERTY LEVIED ON, LIEN.
All property, real and personal, including rights and shares in the stock of corporations,
money, book accounts, credits, negotiable instruments, and other evidences of indebtedness,
may be levied upon and sold on execution. Until a levy, property not subject to the lien of the
judgment is not affected by the execution.
History: (9425) RL s 4296

550.11 LEVY ON PROPERTY SUBJECT TO JUDGMENT LIEN; RELEASE.
It shall be deemed a sufficient levy upon property subject to the lien of the judgment if the
officer make a minute on the execution, stating the time when it was delivered to the officer, and
that at such time the officer levied upon such property, describing it. At the time of or during the
progress of the execution sale, or prior thereto on the request of the judgment creditor, the officer
may release such property, or so much thereof as has not been actually sold, from such levy,
before full satisfaction of the judgment; and the judgment, or such part thereof as has not been
actually satisfied by a payment or sale, and the lien thereof, shall not be affected by such levy and
release, but shall remain in force as if no levy had been made.
History: (9426) RL s 4297; 1986 c 444

550.12 LEVY ON PERSONALTY.
Personal property capable of manual delivery shall be levied upon by the officer taking
it into custody.
History: (9427) RL s 4298

550.13 LEVY ON BULKY ARTICLES.
When personal property, by reason of its bulk or other cause, cannot be immediately
removed, it shall be a sufficient levy thereon if the officer, within three days thereafter, file in
the appropriate filing office under the Uniform Commercial Code, section 336.9-501, a certified
copy of the execution, and of the officer's return and levy thereon. The officer shall pay the
filing fee and include it in the charges.
History: (9428) RL s 4299; 1923 c 420 s 1; 1965 c 812 s 23; 1986 c 444; 2001 c 195
art 2 s 34

550.135 SHERIFF'S LEVY ON OTHER PERSONAL PROPERTY, MONEY, OR
INDEBTEDNESS.
    Subdivision 1. Scope of general and specific provisions. General provisions relating to
the sheriff's levy upon personal property not covered elsewhere in this chapter and upon money
or indebtedness are set forth in this section. Specific provisions relating to a sheriff's levy upon
earnings are set forth in sections 550.136 and 550.142. Specific provisions relating to a sheriff's
levy upon funds at a financial institution are set forth in section 550.143. Summary execution of
judgment debts by an attorney for the judgment creditor is governed by chapter 551.
    Subd. 2. Other personal property. Other personal property shall be levied on by leaving
a copy of the writ of execution and a notice specifying the property levied on, with the person
holding it; or, if a debt, with the judgment debtor; or, if stock or interest in stock of a corporation,
with its president, secretary, treasurer, cashier, officer, or managing agent.
    Subd. 3. Money or indebtedness. The sheriff may levy upon money or other indebtedness
owed by a third party to the judgment debtor. The sheriff may serve a copy of the writ of execution
through a registered or certified letter or by personal service to the third party. Upon receipt,
unless governed by section 550.136 or 550.143, the third party shall remit to the sheriff as much
of the amount due under section 550.04 as the third party's own debt equals.
    Subd. 4. Property not attachable. The following property is not subject to attachment by a
writ of execution served pursuant to this chapter:
(1) any indebtedness or money due to the judgment debtor, unless at the time of the service
of the writ of execution the same is due absolutely or does not depend upon any contingency;
(2) any judgment owing by the third party to the judgment debtor, if the third party or the
third party's property is liable on an execution levy upon the judgment;
(3) any debt owing by the third party to the judgment debtor for which any negotiable
instrument has been issued or endorsed by the third party;
(4) any indebtedness or money due to the judgment debtor where the judgment debtor is
a bank, savings bank, trust company, credit union, savings association, or industrial loan and
thrift company with deposit liabilities;
(5) any indebtedness or money due to the judgment debtor with a cumulative value of less
than $10; and
(6) any disposable earnings, indebtedness, or money that is exempt under Minnesota or
federal law.
    Subd. 5. Third party fee. If the levy is upon earnings or upon funds at a financial institution,
the third party shall be paid a $15 fee at the time of the service of the writ of execution. Failure to
pay the fee renders the levy void, and the third party shall take no action. The $15 shall not be
paid where the funds being levied on are being retained pursuant to a garnishment previously
served in compliance with chapter 571. This fee may be recovered by the judgment creditor
as an allowable cost. The judgment creditor shall provide the $15 fee to the sheriff to be paid
to the third party. If a third party is required to appear and submit to oral examination, the third
party shall be tendered, in advance of the examination, fees and mileage for attendance at the
rate allowed by law to a witness. These fees may be recovered by the judgment creditor as an
allowable disbursement. In extraordinary cases, the third party may be allowed additional sums
the court considers reasonable for attorney fees and other necessary expenses. The court shall
then determine which party bears the burden of this expense.
    Subd. 6. Third party disclosure and remittance. Within 15 days after receipt of the writ of
execution, unless governed by section 550.136 or 550.143, the third party shall make the required
disclosure and remittance to the sheriff. The remittance shall be as much of the amount due under
section 550.04 as the third party's own debt equals.
    Subd. 7. Oral disclosure. Before or after the service of a written disclosure by a third
party under subdivision 6, upon a showing by affidavit upon information and belief that an
oral examination of the third party would provide a complete disclosure of relevant facts, any
party to the execution proceedings may obtain an ex parte order requiring the third party, or a
representative of the third party designated by name or by title, to appear for oral examination
before the court or a referee appointed by the court. Notice of the examination shall be given to
all parties.
    Subd. 8. Supplemental complaint. If a third party holds property, money, earnings, or other
indebtedness by a title that is void as to the judgment debtor's creditors, the property may be
levied on although the judgment debtor would be barred from maintaining an action to recover the
property, money, earnings, or other indebtedness. In this and all other cases where the third party
denies liability, the judgment creditor may move the court at any time before the third party is
discharged, on notice to both the judgment debtor and the third party for an order making the
third party a party to the supplemental action and granting the judgment creditor leave to file
a supplemental complaint against the third party and the judgment debtor. The supplemental
complaint shall set forth the facts upon which the judgment creditor claims to charge the third
party. If probable cause is shown, the motion shall be granted. The supplemental complaint shall
be served upon the third party and the judgment debtor and any other parties. The parties served
shall answer or respond pursuant to the Minnesota Rules of Civil Procedure for the District
Courts, and if they fail to do so, judgment by default may be entered against them.
    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
the judgment debtor, the court may render judgment against the third party for an amount not
exceeding 110 percent of the amount claimed in the writ of execution. The court upon good cause
shown may remove the default and permit the third party to disclose or remit on just terms.
    Subd. 10. Forms. No judgment creditor shall use a form that contains alterations or changes
from the statutory forms that mislead judgment debtors as to their rights and the execution
procedure generally. If a court finds that a judgment creditor has used a misleading form, the
judgment debtor shall be awarded actual damages, costs, reasonable attorney fees resulting from
additional proceedings, and an amount not to exceed $100. All forms must be clearly legible and
printed in not less than the equivalent of 10-point type. A form that uses both sides of a sheet must
clearly indicate on the front side that there is additional information on the back side of the sheet.
Forms, including the statutory forms, used in executions upon earnings for the satisfaction of
judgments for child support must be changed by the creditor to reflect the fact that the 70-day
period of effectiveness does not apply to these executions if the judgment creditor is a county and
the employer is notified by the county when the judgment is satisfied.
    Subd. 11. Third party good faith requirement. The third party is not liable to the judgment
debtor, judgment creditor, or other person for wrongful retention if the third party retains or remits
disposable earnings, indebtedness, or money of the judgment debtor or any other person, pending
the third party's disclosure or consistent with the disclosure the third party makes, if the third party
has a good faith belief that the property retained or remitted is subject to the writ of execution. In
addition, the third party may, at any time before or after disclosure, proceed under Rule 67 of the
Minnesota Rules of Civil Procedure for the District Courts to make deposit into court. No third
party is liable for damages if the third party complies with the provisions of this chapter.
    Subd. 12. Bad faith claim. If, in a proceeding brought under section 550.143, subdivision
10 , or a similar proceeding under this chapter to determine a claim of exemption, the claim
of exemption is not upheld, and the court finds that it was asserted in bad faith, the judgment
creditor shall be awarded actual damages, costs, reasonable attorney fees resulting from the
additional proceedings, and an amount not to exceed $100. If the claim of exemption is upheld,
and the court finds that the judgment creditor disregarded the claim of exemption in bad faith,
the judgment debtor shall be awarded actual damages, costs, reasonable attorney fees resulting
from the additional proceedings, and an amount not to exceed $100. The underlying judgment
shall be modified to reflect assessment of damages, costs, and attorney fees. However, if the party
in whose favor a penalty assessment is made is not actually indebted to that party's attorney for
fees, the attorney's fee award shall be made directly to the attorney and if not paid, an appropriate
judgment in favor of the attorney shall be entered. Any action by a judgment creditor made in bad
faith and in violation of this chapter renders the execution levy void and the judgment creditor
liable to the judgment debtor named in the execution levy in the amount of $100, actual damages,
and reasonable attorney fees and costs.
    Subd. 13. Discharge of a third party. Subject to subdivisions 6 and 14, the third party,
after disclosure, shall be discharged of any further obligation to the judgment creditor when one
of the following conditions is met:
(a) The third party discloses that the third party is not indebted to the judgment debtor
or does not possess any property, money, or earnings belonging to the judgment debtor that is
attachable as defined in this chapter. The disclosure is conclusive against the judgment creditor
and discharges the third party from any further obligation to the judgment creditor other than to
retain and remit all nonexempt disposable earnings, indebtedness, or money of the judgment
debtor that was disclosed.
(b) The third party discloses that the third party is indebted to the judgment debtor as
indicated on the execution disclosure form. The disclosure is conclusive against the judgment
creditor and discharges the third party from any further obligation to the judgment creditor other
than to retain and remit all nonexempt disposable earnings, indebtedness, or money of the
judgment debtor that was disclosed.
(c) The court may, upon motion of an interested person, discharge the third party as to
any disposable earnings, money, property, or indebtedness in excess of the amount that may be
required to satisfy the judgment creditor's claim.
    Subd. 14. Exceptions to discharge of a third party. The third party is not discharged if:
(a) Within 20 days of the service of the third party's disclosure, an interested person serves a
motion relating to the execution levy. The hearing on the motion must be scheduled to be heard
within 30 days of the service of the motion.
(b) The judgment creditor moves the court for leave to file a supplemental complaint against
the third party, as provided for in subdivision 8, and the court upon proper showing, vacates the
discharge of the third party.
    Subd. 15. Joinder and intervention by persons in interest. If it appears that a person, who
is not a party to the action, has or claims an interest in any of the disposable earnings, other
indebtedness, or money, the court shall permit that person to intervene or join in the execution
proceeding under this chapter. If that person does not appear, the court may summon that person
to appear or order the claim barred. The person so appearing or summoned shall be joined as a
party and be bound by the judgment.
    Subd. 16. Appeal. A party to an execution proceeding aggrieved by an order or final
judgment may appeal as in other civil cases.
History: 1990 c 606 art 1 s 2; 1993 c 156 s 1; 1995 c 202 art 1 s 25

550.136 SHERIFF'S LEVY OF EARNINGS.
    Subdivision 1. Procedure. When earnings are levied upon by the sheriff, this section must
be complied with, in addition to the general provisions specified in section 550.135.
    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings
given them:
(a) "Earnings" means:
(1) compensation paid or payable to an employee for personal service whether denominated
as wages, salary, commissions, bonus, or otherwise, and includes periodic payments pursuant
to a pension or retirement program;
(2) compensation paid or payable to the producer for the sale of agricultural products;
livestock or livestock 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; or
(3) maintenance as defined in section 518.003, subdivision 3a.
(b) "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.
(c) "Employee" means an individual who performs services subject to the right of the
employer to control both what is done and how it is done.
(d) "Employer" means a person for whom an individual performs services as an employee.
    Subd. 3. Limitation on levy on earnings. Unless the judgment is for child support, the
maximum part of the aggregate disposable earnings of an individual for any pay period subjected
to an execution levy may not exceed the lesser of:
(1) 25 percent of the judgment debtor's disposable earnings; or
(2) the amount by which the judgment debtor's disposable earnings exceed the following
product: 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the Fair
Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1), in effect at the time
the earnings are payable, times the number of work weeks in the pay period. When a pay period
consists of other than a whole number of work weeks, each day of that pay period in excess of
the number of completed work weeks shall be counted as a fraction of a work week equal to the
number of excess work days divided by the number of days in the normal work week.
If the judgment is for child support, the levy may not exceed:
(1) 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);
(2) 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);
(3) 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
(4) 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).
Execution levies under this section on judgments for child support are effective until the
judgments are satisfied if the judgment creditor is a county and the employer is notified by the
county when the judgment is satisfied.
No court may make, execute, or enforce an order or any process in violation of this section.
    Subd. 4. Multiple levies on earnings. Except as otherwise provided in this chapter or section
518A.53, the priority of multiple earnings execution levies is determined by the order in which
the execution levies were served on the employer. If the employer is served with two or more
writs of execution at the same time on the same day, the writ of execution issued pursuant to the
first judgment entered has priority. If two or more execution levies are served on the same day
and are based on judgments entered on the same day, then the employer shall select the priority
of the earnings levies. However, in all cases except earnings execution levies on judgments for
child support if the judgment creditor is a county and the employer is notified by the county when
the judgment is satisfied, the execution levies shall be effective no longer than 70 days from the
date of the service of the writ of execution.
    Subd. 5. Earnings attachable. (a) Subject to the exemptions provided by sections 550.37
and 571.922, and any other applicable statute, and except as otherwise provided in paragraph (b),
the service of a writ of execution under this chapter attaches all unpaid nonexempt disposable
earnings owing or to be owed by the third party 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 date of service of
the writ of execution. "Paydays" means the days upon which the third party pays earnings to
the judgment debtor in the ordinary course of business. If the judgment debtor has no regular
paydays, paydays means the 15th day and the last day of each month. If the levy attaches less than
$10, the third party shall not retain and remit the sum.
(b) The service of a writ of execution on a judgment for child support attaches to all unpaid
nonexempt disposable earnings owing or to be owed by the third party 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 until the judgment is satisfied if the judgment creditor is a
county and the third party is notified by the county when the judgment is satisfied.
    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 INTENT TO LEVY ON EARNINGS
	and
	(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

    Subd. 7. Additional notices. If the execution levy has not been served within one year after
service of the exemption notice, the judgment creditor or its attorney shall serve another notice
upon the judgment debtor before serving the execution levy on the judgment debtor's employer. If
more than one year has passed since the service of the judgment creditor's most recent execution
levy, the judgment creditor shall, no less than ten days before service of a subsequent execution
levy, serve notice that another execution levy may be served.
    Subd. 8. Proceedings if no exemption statement is received. If no statement of exemption
is received by the judgment creditor's attorney (or the creditor if not represented by an attorney)
on an earnings levy within ten days after the service of the notice, the judgment creditor may
proceed with the execution levy. Failure of the judgment debtor to serve a statement does not
constitute a waiver of any right the judgment debtor may have to an exemption. If the statement of
exemption is received by the judgment creditor, the judgment creditor may still cause a levy to be
served subject to sanctions provided in section 550.143, subdivision 10.
    Subd. 9. Execution earnings disclosure form and worksheet. The judgment creditor shall
provide to the sheriff for service upon the judgment debtor's employer 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	EARNINGS
	(Judgment Debtor)	EXECUTION
	and	DISCLOSURE
	(Third Party)

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 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 below
and return this disclosure to the sheriff 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 sheriff 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 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 payday 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 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 Date		Gross Earnings		Disposable Earnings

	1.			$		$
	2.
	3.
	4.
	5.
	6.
	7.
	8.
	9.
	10.

	D		E		F
	25% of Column C		40 X Min. Wage		Column C minus Column E

	1.
	2.
	3.
	4.
	5.
	6.
	7.
	8.
	9.
	10.

	G		H		I
	Lesser of Column D and Column F		Setoff, Lien, Adverse Interest, or Other Claims		Column G minus Column H

	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 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

    Subd. 10. Execution earnings disclosure form and worksheet for child support
judgments. The judgment creditor shall provide to the sheriff for service upon a child support
judgment debtor's employer 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	EARNINGS
	(Judgment Debtor)	EXECUTION
	and	DISCLOSURE
	(Third Party)

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 unemployment benefits.
"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 sheriff 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 sheriff 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 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 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 Date		Gross Earnings		Disposable Earnings

	1.			$		$
	2.
	3.
	4.
	5.
	6.
	7.
	8.
	9.
	10.

	D		E		F
	Either 50, 55, 60, or 65% of Column C		Setoff, Lien, Adverse Interest, or Other Claims		Column D minus Column E

	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

    Subd. 11. Postexecution notice to judgment debtor. The judgment creditor shall serve by
mail upon the judgment debtor not later than five days after service is made on the judgment
debtor's employer, a copy of the writ of execution and copies of all other papers served on the
judgment debtor's employer.
    Subd. 12. Third party disclosure and remittance obligation. If there are no attachable
earnings, the third party shall serve the execution earnings disclosure form upon the sheriff within
20 days after service of the writ of execution. However, if the judgment debtor has attachable
earnings, the third party shall serve the execution earnings disclosure form and remit to the sheriff
the attached earnings within ten days of the last payday to occur within the 70 days after the date
of the service of the execution. If the judgment is wholly satisfied or if the judgment debtor's
employment ends before the expiration of the 70-day period, the disclosure and remittance should
be made within ten days after the last payday for which earnings were attached. The amount of
the third party's execution earnings disclosure form and remittance need not exceed 110 percent
of the amount of the judgment creditor's judgment that remains unpaid, after subtracting the total
of setoffs, defenses, exemption, or other adverse interests. If the disclosure is by a corporation, it
shall be made by an officer or an authorized agent having knowledge of the facts.
    Subd. 13. Penalty for retaliation or discharge. (a) An employer shall not discharge or
otherwise discipline an employee as a result of an earnings levy authorized by this chapter.
(b) If an employer violates this section, a court may order the reinstatement of an aggrieved
party who demonstrates a violation of this section, and other relief the court considers appropriate.
The aggrieved party may bring a civil action within 90 days of the date of the prohibited action.
If an employer-employee relationship existed before the violation of this section, the employee
shall recover twice the wages lost as a result of this violation.
(c) The rights guaranteed by this section are not subject to abridgment and may not be
altered by employment contract.
History: 1990 c 606 art 1 s 3; 1991 c 156 s 15,16; 1993 c 156 s 2-4; 1994 c 488 s 8; 1997 c
203 art 6 s 92; 1998 c 382 art 2 s 18; 1999 c 107 s 66; 1999 c 159 s 141; 2000 c 343 s 4; 2000 c
405 s 2; 2005 c 164 s 29; 1Sp2005 c 7 s 28

550.14 [Repealed, 1990 c 606 art 3 s 39]

550.141 [Repealed, 1990 c 606 art 3 s 39]

550.142 PUBLIC EMPLOYEES; WAGES, EXECUTION LEVY.
The salary or earnings of any public employee or officer may be levied upon pursuant to
sections 550.135 and 550.136. Where the judgment debtor is an officer, the writ shall be served
upon the auditor, treasurer, or clerk of the subdivision or department of which the judgment debtor
is an officer. Where the judgment debtor is an employee other than an officer, the writ shall be
served upon the person in charge of the office or department in which the employee works.
When payment has been made pursuant to levy, a copy of the writ of execution with
certificate of satisfaction shall be delivered to the treasurer as a voucher for such payment.
History: 1953 c 110 s 2; 1973 c 123 art 5 s 7; 1976 c 335 s 5; 1986 c 444; 1990 c 606 art 1 s 4

550.143 LEVY ON FUNDS AT A FINANCIAL INSTITUTION.
    Subdivision 1. Procedure. When the sheriff is levying upon funds at a financial institution,
this section must be complied with, in addition to the general provisions set forth in section
550.135.
    Subd. 2. Disclosure form. Along with the writ of execution and the exemption notice
described in subdivision 3, the sheriff shall serve upon the financial institution an execution
disclosure form which must be substantially in the following form:

	STATE OF MINNESOTA			DISTRICT COURT
	COUNTY OF			JUDICIAL DISTRICT
	(Judgment Creditor)
	against		FINANCIAL INSTITUTIONS
	(Judgment Debtor)			EXECUTION
	and			DISCLOSURE
	(Third Party)

On the ..... day of ............., ......., the time of service of execution 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 a third party incurred by the judgment
debtor within ten days prior to the receipt of the first execution levy on a debt is void as to the
judgment creditor.)

---

(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 110 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

    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) unemployment benefits, 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 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

    Subd. 4. Effect of exemption notice. Within two business days after receipt of the writ of
execution and exemption notices, the financial institution shall serve upon the judgment debtor
two copies of the exemption notice. The financial institution shall serve the notice by first class
mail to the last known address of the judgment debtor. If no claim of exemption is received by the
financial institution within 14 days after the exemption notices are mailed to the judgment debtor,
the funds remain subject to the execution levy and shall be remitted to the sheriff within seven
days. If the judgment debtor elects to claim an exemption, the judgment debtor shall complete
the exemption notice, sign it under penalty of perjury, and deliver one copy to the financial
institution and one copy to the attorney for the judgment creditor within 14 days of the date
postmarked on the correspondence mailed to the debtor containing the exemption notices. In the
event that there is no attorney for the judgment creditor, then the notice must be sent directly to
the judgment creditor. Failure of the judgment debtor to deliver the executed exemption notice
does not constitute a waiver of any claimed right to an exemption. Upon timely receipt of a claim
of exemption, funds not claimed to be exempt by the debtor remain subject to the execution levy.
All money claimed to be exempt shall be released to the judgment debtor upon the expiration of
seven days after the date postmarked on the envelope containing the executed exemption notice
mailed to the financial institution, or the date of personal delivery of the executed exemption
notice to the financial institution, unless within that time the judgment creditor interposes an
objection to the exemption.
    Subd. 5. Objection to exemption claim. Objection shall be interposed by mailing or
delivering one copy of the written objection to the financial institution and one copy of the written
objection to the judgment debtor along with a copy of the judgment debtor's claimed exemption
form. Both copies of an objection to an exemption claim shall be mailed or delivered on the
same date. The financial institution may rely on the date of mailing or delivery of a notice to it
in computing any time periods in this section. The written objection must be substantially in
the form specified in subdivision 7.
    Subd. 6. Duties of financial institution if objection is made to exemption claim. Upon
receipt of a written objection from the judgment creditor or its attorney within the specified
seven-day period, the financial institution shall retain the funds claimed to be exempt. Unless the
financial institution receives a request for hearing and notice of hearing from the judgment debtor
asserting exemption rights within ten days after receipt of a written objection to the exemption,
the funds remain subject to the execution levy as if no claim of exemption had been made and
shall be remitted to the sheriff within seven days. If a request for hearing and notice of hearing to
determine the validity of a claim of exemption is received by the financial institution within the
period provided, it shall retain the funds claimed to be exempt until otherwise ordered by the court.
    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
need to do so within ten days 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 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

    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.)
    Subd. 9. Release of funds. At any time during the procedure specified in this section,
the judgment debtor or the judgment creditor may, by a writing dated after the service of the
execution, direct the sheriff to release the funds in question to the other party. Upon receipt of a
release, the sheriff shall release the funds as directed.
    Subd. 10. Subsequent proceedings; bad faith claims. If in subsequent proceedings brought
by the judgment debtor or the judgment creditor, the claim of exemption is not upheld, and the
court finds that it was asserted in bad faith, the judgment creditor shall be awarded actual damages,
costs, and reasonable attorney fees resulting from the additional proceedings, and an amount not
to exceed $100. If the claim of exemption is upheld, and the court finds that the judgment creditor
disregarded the claim of exemption in bad faith, the judgment debtor shall be awarded costs,
reasonable attorney fees, actual damages, and an amount not to exceed $100. The underlying
judgment must be modified to reflect assessment of damages, costs, and attorney fees. However,
if the party in whose favor a penalty assessment is made is not actually indebted to the party's
attorney for fees, the attorney's fee award shall be made directly to the attorney and, if not paid,
an appropriate judgment in favor of the attorney shall be entered. Upon motion of any party in
interest, on notice, the court shall determine the validity of any claim of exemption, and may make
any order necessary to protect the rights of those interested. No financial institution is liable for
damages for complying with this section. Both copies of an exemption claim or an objection to an
exemption claim must be mailed or delivered on the same date. The financial institution may rely
on the date of mailing or delivery of a notice to it in computing any time periods in this section.
History: 1990 c 606 art 1 s 5; 1992 c 464 art 1 s 56; 1993 c 156 s 5; 1994 c 488 s 8; 1998 c
254 art 1 s 107; 1999 c 107 s 66; 1999 c 159 s 142; 2000 c 343 s 4; 2000 c 405 s 3-5

550.15 CERTIFICATE TO BE FURNISHED OFFICER.
When the officer, with a writ of attachment or an execution against the defendant, applies to
any person mentioned in section 550.135 for the purpose of attaching or levying upon property
mentioned therein, such person shall furnish the officer with a certificate showing the description
and amount of the property of the judgment debtor held by such person or corporation, the number
of rights or shares of such debtor in the stock of the corporation, with any dividend thereon, or
the debt owing to the judgment debtor, with any encumbrance upon the property; and, on refusal
so to do, such person may be required by the court to attend before it and be examined on oath
concerning the same.
History: (9430) RL s 4301; 1986 c 444; 1996 c 305 art 1 s 117

550.16 LEVY ON PLEDGED OR MORTGAGED CHATTELS.
When personal property is pledged or mortgaged for the payment of money or the
performance of any contract or agreement, the right and interest of the pledgor or mortgagor in
such property may be sold on execution against the pledgor or mortgagor, and the purchaser shall
acquire all the pledgor's or mortgagor's right and interest therein, and be entitled to the possession
of such property, on complying with the terms and conditions of the pledge or mortgage.
History: (9301) 1913 c 63 s 1; 1955 c 220 s 1; 1986 c 444

550.17 LEVY ON GROWING CROPS.
A levy may be made upon any unharvested crops, but no sale shall be made until they are
ripe or fit to be harvested. Any levy under an execution issued by a court shall be continued
beyond its return day if necessary and its execution may be completed at any time within 30 days
after the crops are ripe or fit to be harvested.
History: (9432) RL s 4303; 1983 c 359 s 78

550.175 EXECUTION ON REAL PROPERTY THAT INCLUDES HOMESTEAD.
    Subdivision 1. Notification of homestead designation. If real property is to be sold on
execution and the property contains a portion of the homestead of the debtor, the debtor must be
notified by the executing creditor that the homestead may be sold and redeemed separately from
the remaining property. The notice in subdivision 2 must be included in the notice of execution
served on the debtor under section 550.19.
    Subd. 2. Homestead designation notice. The following notice must be included in the
execution notice of real property containing a homestead that is served on a debtor under section
550.19. The notice must be in 10 point capitalized letters.
"PART OF THE PROPERTY TO BE SOLD CONTAINS YOUR HOUSE. YOU
MAY DESIGNATE THE AREA OF A HOMESTEAD TO BE SOLD AND REDEEMED
SEPARATELY.
YOU MAY DESIGNATE THE HOUSE YOU OCCUPY AND ANY AMOUNT OF THE
PROPERTY AS A HOMESTEAD. THE DESIGNATED HOMESTEAD PROPERTY MUST
CONFORM TO THE LOCAL ZONING ORDINANCES AND BE COMPACT SO THAT IT
DOES NOT UNREASONABLY REDUCE THE VALUE OF THE REMAINING PROPERTY.
YOU MUST PROVIDE THE CREDITOR CAUSING THIS PROPERTY TO BE SOLD,
THE SHERIFF, AND THE COUNTY RECORDER WITH A COPY OF THE LEGAL
DESCRIPTION OF THE HOMESTEAD YOU HAVE DESIGNATED BY TEN BUSINESS
DAYS BEFORE THE DATE THE PROPERTY IS TO BE SOLD."
    Subd. 3. Designation of homestead property. The debtor must designate the legal
description of the homestead property to be sold separately and the debtor's estimate of the value
of the property. The homestead property designated may include any amount of the property. The
designation must conform to local zoning, include the dwelling occupied by the debtor, and be
compact so that it does not unreasonably affect the value of the remaining property. The debtor
must serve a copy of the designation on the executing creditor, the sheriff, and the county recorder
by ten business days before the sale is scheduled.
    Subd. 4. Sale of property. (a) If the sheriff receives a homestead property designation
under subdivision 3, the sheriff must offer and sell the designated homestead property, and the
remaining property, separately, unless the executing creditor denies the right to the exemption,
objects to the property designated, or claims the value exceeds the exemption.
(b) If the executing creditor is dissatisfied with the homestead property designation or the
debtor's valuation of the property, upon proper motion to the district court of the county in
which any part of the property is located, the executing creditor is entitled to a court approved
designation of the homestead and a court determination of value. The court shall either approve
the debtor's designation or cause the property to be surveyed and order a homestead designation
consistent with the standards of subdivision 3 and require an appraisal of fair market value,
as applicable. The court's designation of the homestead property must conform to the debtor's
request, to the extent not inconsistent with the standards of subdivision 3.
(c) The court, in determining appraised value, shall review any appraisals provided by the
debtor and executing creditor and may require a court appointed independent appraisal. The
appraisals shall evaluate the property's fair market value, net of reasonable costs of sale.
(d) If the court determines that the property claimed as a homestead exceeds in value the
amount of the homestead exemption or if the court determines that the property cannot be
divided without material injury, the court shall order the sale of the entire property, including the
designated homestead. Out of the proceeds of the sale, the court shall pay the debtor the amount
of the homestead exemption and apply the balance of the proceeds of the sale on the execution.
(e) At the sale, no bid may be accepted unless it exceeds the amount of the homestead
exemption. If no bid exceeds the exemption, the homestead is exempt.
(f) The cost of any court ordered survey or appraisal and of the sale must be collected on
the execution, if the debtor designated as the debtor's homestead a greater quantity of property,
property of greater value than the debtor was entitled to, or designated a parcel that does not meet
the standards of subdivision 3. In all other cases, the costs shall be borne by the executing creditor.
    Subd. 5. Redemption. The debtor may redeem the designated homestead, the remaining
property, or the entire property including the homestead. The period of redemption for the
designated homestead or the remaining property is the same as the period of redemption for the
entire property including the designated homestead.
History: 1986 c 398 art 2 s 1; 1993 c 79 s 5,6

550.18 NOTICE OF SALE.
Before the sale of property on execution notice shall be given as follows:
(1) if the sale be of personal property, by giving ten days posted notice of the time and
place thereof;
(2) if the sale be of real property, on execution or on judgment, by six weeks posted and
published notice of the time and place thereof, describing the property with sufficient certainty to
enable a person of common understanding to identify it.
An officer who sells without such notice shall forfeit $100 to the party aggrieved, in addition
to paying actual damages; and a person who before the sale or the satisfaction of the execution,
and without the consent of the parties, takes down or defaces the notice posted, shall forfeit
$50; but the validity of the sale shall not be affected by either act, either as to third persons or
parties to the action.
History: (9433) RL s 4304; 1986 c 444

550.19 SERVICE ON JUDGMENT DEBTOR.
At or before the time of posting notice of sale, the officer shall serve a copy of the execution
and inventory, and of such notice, upon the judgment debtor, if the debtor be a resident of the
county, in the manner required by law for the service of a summons in a civil action.
History: (9434) RL s 4305; 1986 c 444

550.20 SALE, WHEN AND HOW.
The sale shall be by auction, between 9:00 a.m. and sunset, in the county where the property
or some part thereof is situated. If the sale is of personal property capable of manual delivery, it
shall be within view of those who attend, and shall be sold in such parcels as are likely to bring
the highest price. If of real property consisting of several known parcels, the parcels shall be
sold separately; and, if a portion thereof is claimed by a third person who requires it to be sold
separately, it shall be so sold. No more shall be sold than is sufficient to satisfy the execution,
and neither the officer nor the officer's deputy may purchase.
History: (9435) RL s 4306; 1986 c 444

550.205 [Repealed, 1986 c 398 art 2 s 4]

550.21 SALE OF CORPORATE STOCK.
In case of the sale of any rights or shares in the stock of a corporation, the sheriff shall
execute to the purchaser a certificate of such sale, which shall transfer to the purchaser all the
rights of the judgment debtor in respect thereto.
History: (9436) RL s 4307; 1986 c 444

550.22 CERTIFICATE OF SALE OF REALTY.
When a sale of real property is made upon execution, or pursuant to a judgment or order of a
court, unless otherwise specified therein, the officer shall execute to the purchaser a certificate
containing:
(1) a description of the execution, judgment, or order;
(2) a description of the property;
(3) the date of the sale and the name of the purchaser;
(4) the price paid for each parcel separately;
(5) if subject to redemption, the time allowed by law therefor.
Such certificate shall be executed, acknowledged, and recorded in the manner provided by
law for a conveyance of real property, shall be prima facie evidence of the facts therein stated,
and, upon expiration of the time for redemption, shall operate as a conveyance to the purchaser
of all the right, title, and interest of the person whose property is sold in and to the same, at the
date of the lien upon which the same was sold.
History: (9437) RL s 4308

550.23 INTEREST OF PURCHASER SUBJECT TO ATTACHMENT OR JUDGMENT.
The interest acquired upon any sale is subject to the lien of an attachment or judgment duly
made or docketed against the person holding the same, as in case of real property, and may be
attached or sold on execution in the same manner.
History: (9439) RL s 4309

550.24 REDEMPTION OF REALTY.
(a) Upon the sale of real property, if the estate sold is less than a leasehold of two years'
unexpired term, the sale is absolute. In all other cases the property sold, or any portion thereof
which has been sold separately, is subject to redemption as provided in this section.
(b) The judgment debtor, the debtor's heirs, successors, legal representatives, or assigns may
redeem within one year after the day of sale by paying, to the purchaser or the officer making
the sale, the amount for which the property was sold with interest at the judgment rate and if the
purchaser is a creditor having a prior lien, the amount thereof, with interest at the judgment rate.
(c) If there is no redemption during the debtor's redemption period, creditors having a lien,
legal or equitable, on the property or some part thereof, subsequent to that on which it was sold
may redeem in the manner provided for redemption by creditors of the mortgagor in section
580.24, in the order of their respective liens.
History: (9440) RL s 4310; 1986 c 444; 2000 c 320 s 5

550.25 [Repealed, 2000 c 320 s 9]

550.26 REDEMPTION, HOW MADE.
The person desiring to redeem shall pay to the person holding the right acquired under such
sale, or for the person to the sheriff or the court administrator of the district court of the county in
which the real property is situated, the amount required by law for such redemption, and shall
produce to such person or officer the same documents required by law to be produced by a person
desiring to redeem from a sale of real property under foreclosure of a mortgage by advertisement;
and the person redeeming shall cause such documents to be filed with the county recorder as
required in the case of redemption from such foreclosure sale.
History: (9442) RL s 4312; 1976 c 181 s 2; 1986 c 444; 1Sp1986 c 3 art 1 s 82

550.27 CERTIFICATE OF REDEMPTION; EFFECT OF REDEMPTION.
The person or officer from whom such redemption is made shall execute to the person
redeeming a certificate in substantially the same form as the certificate required by law to
be executed on redemption from a sale of real property under foreclosure of a mortgage by
advertisement; and all the provisions of law applicable to the recording and to the effect of such
certificate, and to the effect of redemption of the property sold on such foreclosure sale, by the
owner, the owner's heirs, personal representatives, or assigns, or by creditors, shall be applicable
to the certificate required by this section, and to redemption made under this chapter.
History: (9443) RL s 4313; 1986 c 444

550.28 SALE IRREGULAR OR JUDGMENT REVERSED.
If the purchaser of real property sold on execution, or the purchaser's successor in interest,
be evicted therefrom in consequence of irregularities in the proceedings concerning the sale, or
of the reversal or discharge of the judgment, the purchaser or successor may recover from the
judgment creditor the price paid, with interest. When such recovery is had in consequence of
irregularity, the judgment creditor shall thereupon be entitled, within ten years after such eviction,
to a new execution on the judgment for the price paid on the sale, with interest; and for that
purpose the judgment shall be deemed valid against the judgment debtor, the debtor's personal
representatives, heirs, or devisees, but not against a purchaser or encumbrancer in good faith who
became such before a levy on such new execution.
History: (9444) RL s 4314; 1986 c 444

550.29 REDEMPTION PENDING ACTION TO SET ASIDE EXECUTION SALE.
When an action is brought to set aside an execution sale of land, and the time of redemption
from such sale may expire before final judgment therein, any person having the right to redeem
therefrom, for the purpose of saving such right, may deposit with the sheriff, before the time of
redemption expires, the amount that will be necessary to redeem such premises at the date of such
expiration, together with a bond in an amount and with sureties to be approved by such sheriff,
conditioned to pay all interest that may accrue or be allowed on such deposit until final redemption
as hereinafter provided. Such deposit and bond shall operate to extend the time of redemption for
30 days after the final determination of such action, during which time any person entitled by law
to redeem may do so by paying to the sheriff the amount of such deposit with accrued interest.
The deposit and bond shall be brought to the attention of the court by supplemental complaint in
the action, and the judgment shall determine the validity of the execution sale, and the right of the
parties to the moneys and bonds so deposited, which shall be paid and delivered by the sheriff as
directed by such judgment, upon delivery to the sheriff of a certified copy thereof. The remedy
herein provided shall be in addition to other remedies now existing.
History: (9445) RL s 4315; 1986 c 444

550.30 CREDITOR MAY REDEEM IN CERTAIN CASES.
Any creditor whose claim shall have been proved and allowed by a court of this state against
the estate of a deceased debtor shall have the right, as a creditor of such decedent, to redeem
the lands of the decedent from a sale thereof upon the foreclosure of a mortgage, or upon an
execution, in the order and in the manner herein provided.
History: (9445-1) 1929 c 195 s 1; 1995 c 189 s 8; 1996 c 277 s 1

550.31 CREDITOR TO RECORD ORDER WITH COUNTY RECORDER.
For the purpose of such redemption a creditor whose claim against the estate of a decedent
shall have been so allowed shall record in the office of the county recorder of the county in which
the real estate sought to be redeemed is situated, within the year of redemption, a certified copy
of the order of the court allowing such claim, and thereupon such claim shall constitute a lien
upon the unexempt real estate of the decedent sold upon foreclosure or execution. The creditor
shall also within such time file a notice in the office of such county recorder briefly describing
the sale of the decedent's lands, a description of the lands sold, and stating, in a general way, the
nature, date and amount of the claim of the creditor, and that the creditor intends to redeem such
lands from the sale thereof described in such notice. In the case of redemption from execution
sales such notice shall also be filed in the office of the court administrator of the district court in
which such lands are situated.
History: (9445-2) 1929 c 195 s 2; 1976 c 181 s 2; 1986 c 444; 1Sp1986 c 3 art 1 s 82;
1995 c 189 s 8; 1996 c 277 s 1; 2005 c 4 s 131

550.32 RECORDING TO DETERMINE PRIORITY.
In the event more than one such proved and allowed claim shall be so recorded for the
purposes of such redemption, then, as between the owners of such claims, their right to redeem
shall be in the order in which such claims were originally recorded, succession commencing
with the oldest in point of time; that as to the creditors of the decedent having a lien or liens,
either legal or equitable, upon the lands of a decedent and existing otherwise than by allowance
in probate, the creditors of the decedent whose claims have been allowed in probate shall be
subsequent or junior thereto.
History: (9445-3) 1929 c 195 s 3; 2005 c 4 s 132

550.33 CREDITOR MAY REDEEM WHEN.
If no redemption is made by the personal representative of the deceased debtor, or by the
assigns of such decedent, within one year after the date of such sale, or within one year after the
date of the confirmation of such sale, as the case may be, the senior creditor having a lien, legal
or equitable, upon the premises sold upon the foreclosure of a mortgage or upon execution,
and subsequent to the mortgage or judgment lien under or by reason of which the premises
were sold, including the creditors of a deceased debtor whose claims have been perfected and
recorded as herein provided, may redeem within five days after the expiration of said 12 months
by payment of the amount required by law for that purpose; and each subsequent creditor having
a lien in succession, according to priority of liens, within five days after the time allowed the prior
lienholder, respectively, may redeem by paying the amount aforesaid and all liens prior to the
creditor's own held by the person from whom redemption is made.
History: (9445-4) 1929 c 195 s 4; 1986 c 444

550.34 DISTRICT COURT TO DETERMINE AMOUNT.
When any such creditor redeems from the foreclosure of a mortgage under the provisions of
sections 550.30 to 550.35 the district court shall determine the amount that shall be credited on
the creditor's claim against the estate.
History: (9445-5) 1929 c 195 s 5; 1986 c 444; 1995 c 189 s 8; 1996 c 277 s 1

550.35 REDEMPTION.
Except as provided in sections 550.30 to 550.34, all such redemption shall have the force and
be governed by and subject to all of the requirements of the statutes relating to the redemption of
real estate from mortgage and execution sales now or hereafter in force.
History: (9445-6) 1929 c 195 s 6

550.36 STAY OF EXECUTION ON MONEY JUDGMENT.
(a) This section is an alternative to the Minnesota Rule of Civil Appellate Procedure, section
108.01, subdivision 3. Execution of a judgment for the payment of money only shall be stayed
during the course of all appeals or discretionary appellate reviews of a judgment if, within ten
days after the entry thereof, the judgment debtor shall file with the court administrator a bond,
running to the judgment creditor, the creditor's personal representatives, and assigns. The amount
of the bond must be in the amount of the judgment, or a lesser amount approved by the court in
the interests of justice. The total appeal bond that is required of all appellants must not exceed
$150,000,000, regardless of the value of the judgment. The bond must be conditioned for the
payment of the judgment, with interest during the time for which the stay is granted. Interest shall
be computed in the same manner and at the same rate provided for interest on verdicts in section
549.09. Within two days thereafter notice that such bond has been filed, with a copy of the same,
shall be served on the judgment creditor, if the creditor be a resident of the county, or upon the
creditor's agent or attorney, if the creditor has one, and the judgment creditor may except to the
sufficiency of the bond; and, upon the creditor's application upon notice or order to show cause,
the court, if it find the bond insufficient, may order execution to issue notwithstanding the same,
unless the judgment debtor give such further bond as it shall deem sufficient. If the condition of
any such bond be not performed, the execution shall issue for the amount of the judgment, with
interest and costs, against the judgment debtor and the sureties. When an execution issues against
sureties the officer shall certify in the return what amount, if any, was collected from them and the
date thereof. If a stay be granted after execution issued, any levy made thereon shall be released
and the execution shall be returned and the reason noted by the officer.
(b) Notwithstanding paragraph (a), if a judgment creditor provides evidence that a judgment
debtor may be dissipating assets to avoid payment of a judgment, a court may enter orders that:
(1) are necessary to protect the judgment creditor; and
(2) require the judgment debtor to post a bond in an amount up to the total amount of the
judgment.
History: (9446) RL s 4316; 1979 c 105 s 2; 1979 c 289 s 5; 1986 c 444; 1Sp1986 c 3
art 1 s 82; 2004 c 190 s 1

550.365 MEDIATION NOTICE AND REQUIREMENTS FOR AGRICULTURAL
PROPERTY.
    Subdivision 1. Requirement. A person may not attach, execute on, levy on, or seize
agricultural property subject to sections 583.20 to 583.32 that has secured a debt of more than
$5,000 unless: (1) a mediation notice is served on the judgment debtor and a copy served on the
director and the debtor and creditor have completed mediation under sections 583.20 to 583.32;
or (2) as otherwise allowed under sections 583.20 to 583.32.
    Subd. 2. Contents. A mediation notice must contain the following notice with the blanks
properly filled in.
"TO: ....(Name of Judgment Debtor)....
A JUDGMENT WAS ORDERED AGAINST YOU BY ....(Name of Court).... ON ....(Date
of Judgment).
AS A JUDGMENT CREDITOR, ....(Name of Judgment Creditor).... INTENDS TO TAKE
ACTION AGAINST THE AGRICULTURAL PROPERTY DESCRIBED AS ....(Description
of Agricultural Property).... TO SATISFY THE JUDGMENT.
YOU HAVE THE RIGHT TO HAVE THE DEBT REVIEWED FOR MEDIATION. IF
YOU REQUEST MEDIATION, A DEBT THAT IS IN DEFAULT WILL BE MEDIATED ONLY
ONCE. IF YOU DO NOT REQUEST MEDIATION, THIS DEBT WILL NOT BE SUBJECT TO
FUTURE MEDIATION IF THE SECURED PARTY ENFORCES THE DEBT.
IF YOU PARTICIPATE IN MEDIATION, THE DIRECTOR OF THE AGRICULTURAL
EXTENSION SERVICE WILL PROVIDE AN ORIENTATION MEETING AND A
FINANCIAL ANALYST TO HELP YOU PREPARE FINANCIAL INFORMATION. IF YOU
DECIDE TO PARTICIPATE IN MEDIATION, IT WILL BE TO YOUR ADVANTAGE TO
ASSEMBLE YOUR FARM FINANCE AND OPERATION RECORDS AND TO CONTACT A
COUNTY EXTENSION OFFICE AS SOON AS POSSIBLE. MEDIATION WILL ATTEMPT
TO ARRIVE AT AN AGREEMENT FOR HANDLING FUTURE FINANCIAL RELATIONS.
TO HAVE THE DEBT REVIEWED FOR MEDIATION YOU MUST FILE A MEDIATION
REQUEST WITH THE DIRECTOR WITHIN 14 DAYS AFTER YOU RECEIVE THIS
NOTICE. THE MEDIATION REQUEST FORM IS AVAILABLE AT ANY COUNTY
RECORDER'S OR COUNTY EXTENSION OFFICE.
FROM: ....(Name and Address of Judgment Creditor)...."
History: 1986 c 398 art 1 s 2,18; 1987 c 292 s 6,37; 1989 c 350 art 16 s 8; 1990 c 525 s
1; 1991 c 208 s 2; 1Sp1993 c 2 art 6 s 2; 1995 c 212 art 2 s 11; 1997 c 183 art 3 s 29; 1998 c
395 s 7; 1998 c 402 s 6; 1999 c 214 art 2 s 19; 2001 c 195 art 1 s 23; 1Sp2001 c 1 art 2 s 25;
1Sp2001 c 2 s 150; 2005 c 107 art 2 s 55
NOTE: This section expires June 30, 2009. Section 583.215, as added by Laws 2005,
chapter 107, article 2, section 55.

550.366 JUDGMENTS ON DEBTS RELATED TO AGRICULTURAL PROPERTY.
    Subdivision 1. Definitions. For purposes of this section, the following terms have the
meanings given:
(a) Agricultural property. "Agricultural property" means personal property that is used
in a farm operation.
(b) Farm debtor. "Farm debtor" means a person who has incurred debt while in the
operation of a family farm, a family farm corporation, or an authorized farm corporation as
defined in section 500.24, subdivision 2.
    Subd. 2. Limits on execution. A judgment for the unpaid balance of a debt on agricultural
property owed by a farm debtor may not be executed upon real or personal property after three
years from the date the judgment was entered.
    Subd. 3. Attachment to newly acquired property. A judgment for the unpaid balance of a
debt on agricultural property owed by a farm debtor does not attach to real or personal property
that is acquired by the farm debtor after the judgment is entered.
History: 1987 c 292 s 1

550.37 PROPERTY EXEMPT.
    Subdivision 1. Exemption. The property mentioned in this section is not liable to attachment,
garnishment, or sale on any final process, issued from any court.
    Subd. 2. Bible and musical instrument. The family Bible, library, and musical instruments.
    Subd. 3. Pew and burial lot. A seat or pew in any house or place of public worship and
a lot in any burial ground.
    Subd. 4. Personal goods. (a) All wearing apparel, one watch, utensils, and foodstuffs of
the debtor and the debtor's family.
(b) Household furniture, household appliances, phonographs, radio and television receivers
of the debtor and the debtor's family, not exceeding $4,500 in value.
(c) The debtor's aggregate interest, not exceeding $1,225 in value, in wedding rings or other
religious or culturally recognized symbols of marriage exchanged between the debtor and spouse
at the time of the marriage and in the debtor's possession.
The exemption provided by this subdivision may not be waived except with regard to
purchase money security interests. Except for a pawnbroker's possessory lien, a nonpurchase
money security interest in the property exempt under this subdivision is void.
If a debtor has property of the type which would qualify for the exemption under clause (b),
of a value in excess of $4,500 an itemized list of the exempt property, together with the value
of each item listed, shall be attached to the security agreement at the time a security interest is
taken, and a creditor may take a nonpurchase money security interest in the excess over $4,500 by
requiring the debtor to select the exemption in writing at the time the loan is made.
    Subd. 4a. Adjustment of dollar amounts. (a) Except for subdivisions 5 and 7, the dollar
amounts in this section shall change periodically as provided in this subdivision to the extent of
changes in the implicit price deflator for the gross national product, 1972 = 100, compiled by the
United States Department of Commerce, and hereafter referred to as the index. The index for
December 1980 is the reference base index.
(b) The designated dollar amounts shall change on July 1 of each even-numbered year if
the percentage of change, calculated to the nearest whole percentage point, between the index
for December of the preceding year and the reference base index is ten percent or more. The
portion of the percentage change in the index in excess of a multiple of ten percent shall be
disregarded and the dollar amounts shall change only in multiples of ten percent of the amounts
stated in this section.
(c) If the index is revised, the percentage of change pursuant to this section shall be
calculated on the basis of the revised index. If a revision of the index changes the reference
base index, a revised reference base index shall be determined by multiplying the reference
base index then applicable by the rebasing factor furnished by the Department of Commerce.
If the index is superseded, the index referred to in this section is the one represented by the
Department of Commerce as reflecting most accurately changes in the purchasing power of
the dollar for consumers.
(d) The commissioner of commerce shall announce and publish:
(1) on or before April 30 of each year in which dollar amounts are to change, the changes in
dollar amounts required by paragraph (b); and
(2) promptly after the changes occur, changes in the index required by paragraph (c)
including, if applicable, the numerical equivalent of the reference base index under a revised
reference base index and the designation or title of any index superseding the index.
(e) A person does not violate this chapter with respect to a transaction otherwise complying
with this chapter if the person relies on dollar amounts either determined according to paragraph
(b) or appearing in the last publication of the commissioner announcing the then current dollar
amounts.
    Subd. 5. Farm machines. Farm machines and implements used in farming operations by a
debtor engaged principally in farming, livestock, farm produce, and standing crops, not exceeding
$13,000 in value. When a debtor is a partnership of spouses or a partnership of natural persons
related to each other within the third degree of kindred according to the rules of the civil law, for
the purposes of the exemption in this subdivision, the partners may elect to treat the assets of the
partnership as assets of the individual partners.
    Subd. 6. Tools of trade. The tools, implements, machines, instruments, office furniture, stock
in trade, and library reasonably necessary in the trade, business, or profession of the debtor, not
exceeding $5,000 in value.
    Subd. 7. Value limitations. The total value of property selected by a debtor pursuant to
subdivisions 5 and 6 shall not exceed $13,000, if the exemptions under subdivisions 5 and 6
are combined.
    Subd. 8. University apparatus. The library and philosophical and chemical or other
apparatus belonging to, and used for the instruction of youth in, any university, college, seminary
of learning, or school which is indiscriminately open to the public.
    Subd. 9. Exempt property claims. All money arising from any claim on account of the
destruction of, or damage to, exempt property.
    Subd. 10. Insurance proceeds. All money received by, or payable to, a surviving spouse
or child from insurance payable at the death of a spouse, or parent, not exceeding $20,000. The
$20,000 exemption provided by this subdivision shall be increased by $5,000 for each dependent
of the surviving spouse or child.
    Subd. 11. Beneficiary associations. All money, relief, or other benefits payable or to
be rendered by any police department association, fire department association, beneficiary
association, or fraternal benefit association to any person entitled to assistance therefrom, or to
any certificate holder thereof or beneficiary under any such certificate.
    Subd. 12. Manufactured home. A manufactured home, as defined in section 168.011,
subdivision 8 , which is actually inhabited as a home by the debtor.
    Subd. 12a. Motor vehicles. One motor vehicle to the extent of a value not exceeding $2,000;
or one motor vehicle to the extent of a value not exceeding $20,000 that has been modified, at a
cost of not less than $1,500, to accommodate the physical disability making a disabled person
eligible for a certificate authorized by section 169.345.
    Subd. 13. Earnings. All earnings not subject to garnishment by the provisions of section
571.922. A subsequent attachment, garnishment, or levy of execution shall impound only that pay
period's nonexempt disposable earnings not subject to a prior attachment, garnishment or levy of
execution, but in no instance shall more than an individual's total nonexempt disposable earnings
in that pay period be subject to attachment, garnishment, or levy of execution. Garnishments shall
impound the nonexempt disposable earnings in the order of their service upon the employer. The
disposable earnings exempt from garnishment are exempt as a matter of right, whether claimed
or not by the person to whom due. The exemptions may not be waived. The exempt disposable
earnings are payable by the employer when due. The exempt disposable earnings shall also be
exempt for 20 days after deposit in any financial institution, whether in a single or joint account.
This 20-day exemption also applies to any contractual setoff or security interest asserted by a
financial institution in which the earnings are deposited by the individual. In tracing the funds, the
first-in first-out method of accounting shall be used. The burden of establishing that funds are
exempt rests upon the debtor. As used in this section, the term "financial institution" includes credit
unions. Nothing in this paragraph shall void or supersede any valid assignment of earnings or
transfer of funds held on account made prior to the attachment, garnishment, or levy of execution.
    Subd. 14. Public assistance. All relief based on need, and the earnings or salary of a person
who is a recipient of relief based on need, shall be exempt from all claims of creditors including
any contractual setoff or security interest asserted by a financial institution. For the purposes of
this chapter, relief based on need includes MFIP, work first, general assistance medical care,
supplemental security income, medical assistance, Minnesota supplemental assistance, and
general assistance. The salary or earnings of any debtor who is or has been an eligible recipient of
relief based on need, or an inmate of a correctional institution shall, upon the debtor's return to
private employment or farming after having been an eligible recipient of relief based on need,
or an inmate of a correctional institution, be exempt from attachment, garnishment, or levy of
execution for a period of six months after the debtor's return to employment or farming and after
all public assistance for which eligibility existed has been terminated. The exemption provisions
contained in this subdivision also apply for 60 days after deposit in any financial institution,
whether in a single or joint account. In tracing the funds, the first-in first-out method of accounting
shall be used. The burden of establishing that funds are exempt rests upon the debtor. Agencies
distributing relief and the correctional institutions shall, at the request of creditors, inform them
whether or not any debtor has been an eligible recipient of relief based on need, or an inmate of a
correctional institution, within the preceding six months.
    Subd. 15. Minor child earnings. The earnings of the minor child of any debtor and any
child support paid to any debtor, or the proceeds thereof, by reason of any liability of such debtor
not contracted for the special benefit of such minor child.
    Subd. 16. Claims for damages. The claim for damages recoverable by any person by
reason of a levy upon or sale under execution of the person's exempt personal property, or by
reason of the wrongful taking or detention of such property by any person, and any judgment
recovered for such damages.
    Subd. 17. Selection. All articles exempted by this section shall be selected by the debtor, the
debtor's agent, or legal representative.
    Subd. 18. Natural persons limitation. The exemptions provided for in subdivisions 3
to 15 extend only to debtors who are natural persons except as provided in subdivision 5 for
partnerships.
    Subd. 19. Waiver. The exemption of the property listed in subdivisions 2, 3, and 5 to 12a
may not be waived except by a statement in substantially the following form, in boldface type
of a minimum size of 12 points, signed and dated by the debtor at the time of the execution of
the contract surrendering the exemption, immediately adjacent to the listing of the property: "I
understand that some or all of the above property is normally protected by law from the claims of
creditors, and I voluntarily give up my right to that protection for the above listed property with
respect to claims arising out of this contract."
    Subd. 20. Traceable funds. The exemption of funds from creditors' claims, provided by
subdivisions 9, 10, 11, 15, and 24, shall not be affected by the subsequent deposit of the funds
in a bank or any other financial institution, whether in a single or joint account, if the funds are
traceable to their exempt source. In tracing the funds, the first-in first-out method of accounting
shall be used. The burden of establishing that funds are exempt rests upon the debtor. No bank or
other financial institution shall be liable for damages for complying with process duly issued out
of any court for the collection of a debt even if the funds affected by the process are subsequently
determined to have been exempt.
    Subd. 21. Value. For the purpose of this section, "value" means current fair market value.
    Subd. 22. Rights of action. Rights of action for injuries to the person of the debtor or of
a relative whether or not resulting in death.
    Subd. 23. Life insurance aggregate interest. The debtor's aggregate interest not to exceed
in value $4,000 in any accrued dividend or interest under or loan value of any unmatured life
insurance contract owned by the debtor under which the insured is the debtor or an individual
of whom the debtor is a dependent.
    Subd. 24. Employee benefits. (a) The debtor's right to receive present or future payments, or
payments received by the debtor, under a stock bonus, pension, profit sharing, annuity, individual
retirement account, Roth IRA, individual retirement annuity, simplified employee pension, or
similar plan or contract on account of illness, disability, death, age, or length of service, to the
extent of the debtor's aggregate interest under all plans and contracts up to a present value
of $30,000 and additional amounts under all the plans and contracts to the extent reasonably
necessary for the support of the debtor and any spouse or dependent of the debtor.
(b) The exemptions in paragraph (a) do not apply when the debt is owed under a support
order as defined in section 518A.26, subdivision 21.
    Subd. 25. Proceeds for improvements to property. Proceeds of payments received by a
person for labor, skill, material, or machinery contributing to an improvement to real estate
within the meaning of section 514.01.
History: (9447) RL s 4317; 1909 c 12 s 1; 1913 c 375 s 1; 1915 c 202 s 1; 1923 c 154 s 1;
1923 c 350 s 1; 1927 c 272; 1933 c 350 s 1; 1939 c 263; 1941 c 351; 1949 c 282 s 1; 1951 c 673 s
1; 1955 c 859 s 1; 1961 c 568 s 1; 1967 c 835 s 1; 1969 c 1142 s 23,24; 1976 c 335 s 6-10; 1977 c
180 s 3; 1980 c 550 s 1-4; 1980 c 599 s 6-8; 1981 c 7 s 1; 1981 c 322 s 1; 1981 c 365 s 9; 1983 c
235 s 5-11; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1985 c 306 s 2-6; 1Sp1985 c 1 s 24;
1986 c 444; 1988 c 490 s 2-4; 1989 c 284 s 1; 1989 c 350 art 16 s 2-4; 1991 c 199 art 2 s 1; 1993
c 79 s 7; 1993 c 156 s 6; 1995 c 207 art 2 s 36; 1997 c 85 art 4 s 37; 1997 c 203 art 6 s 84; 1999 c
159 s 143; 1999 c 160 s 1; 2000 c 430 s 3; 2005 c 137 s 1; 2005 c 164 s 29; 1Sp2005 c 7 s 28

550.371 EXEMPTIONS IN JOINT BANKRUPTCY.
    Subdivision 1. Applicable law. Except as provided in this section, the exemptions set forth
in subsection (d) of section 522 of the Bankruptcy Act, United States Code, title 11, section
522(d), shall be available to residents of this state.
    Subd. 2. Joint petition. When a husband and wife are joined in a petition for bankruptcy,
they may jointly elect to utilize either the applicable exemption provisions pursuant to Minnesota
law or pursuant to subsection (d) of section 522 of the Bankruptcy Act, United States Code,
title 11, section 522(d), but not both.
    Subd. 3. Individual petition. When a petition for bankruptcy is filed individually, and
not jointly, for a husband or a wife, (a) one spouse shall not claim any exemption pursuant to
Minnesota law for a period of three years from the date of filing if the other spouse has claimed
any exemption under subsection (d) of section 522 of the Bankruptcy Act, United States Code,
title 11, section 522(d); and (b) one spouse shall not claim any exemption pursuant to subsection
(d) of section 522 of the Bankruptcy Act, United States Code, title 11, section 522(d), for a period
of three years from the date of filing if the other spouse has claimed any exemption pursuant to
Minnesota law.
    Subd. 4. Marital status determined. For the purposes of this section, persons shall be
considered to be husband and wife if they are married to each other at the time of the filing of the
first individual or joint petition for bankruptcy by either of them unless a decree of separation or
temporary order of separation of the parties is issued prior to the time the petition is filed.
History: 1982 c 461 s 1

550.38 VETERAN'S PENSION, BONUS, OR COMPENSATION.
All moneys paid to any person as a veteran's pension, bonus, adjusted compensation,
allotment, or other benefit by the state of Minnesota or by the United States are exempt from,
and shall not be liable to, attachment, garnishment, seizure, or sale on any final process issued
out of any court for the period of one year after receipt thereof.
History: (9447-1) Ex1936 c 112

550.39 EXEMPTION OF INSURANCE POLICIES.
The net amount payable to any insured or to any beneficiary under any policy of accident or
disability insurance or under accident or disability clauses attached to any policy of life insurance
shall be exempt and free and clear from the claims of all creditors of such insured or such
beneficiary and from all legal and judicial processes of execution, attachment, garnishment, or
otherwise.
History: (9447-2) 1937 c 191 s 1

550.40 [Renumbered 354.231]

550.41 LEVY ON PROPERTY IN EXCESS OF EXEMPTION.
When the officer holding an execution is of the opinion that the judgment debtor has more
property of the classes specified in section 550.37 than is exempt the officer may levy upon
the whole of any one class and make an inventory thereof and cause the same to be appraised
on oath by two disinterested persons. If such appraisal exceeds the amount exempt of that class,
the debtor may forthwith select of such property an amount not exceeding in appraised value the
amount exempt, and the balance shall be applied by the officer as in other cases. If the debtor does
not make such selection, the officer may make the same. If one or more indivisible articles of
such class is of greater value than the whole amount exempt of that class, the officer shall sell
the same and, after paying to the debtor the amount thereof exempt, shall apply the residue
in discharge of the process.
History: (9448) RL s 4318; 1986 c 444

550.42 WAIVER OF AGRICULTURAL DEBTOR'S RIGHTS.
    Subdivision 1. Waiver is void. (a) A waiver of statutory rights of a debtor in a contract, loan
agreement, or security agreement as a condition for a loan of money for agricultural production is
void unless the waiver is expressly authorized by law.
(b) A waiver of mediation rights under chapter 583, the right to an offer under section
500.245, subdivision 1, or the debtor's statutory rights under chapter 580, 581, or 582 for a
mortgage on agricultural property, is void unless the waiver is expressly authorized by law.
    Subd. 2. Penalty. A person, corporation, financial institution, or other legal entity is liable to
a debtor for up to $2,500 plus attorney fees if the person or entity:
(1) requires a waiver subject to subdivision 1 in a contract, loan agreement, or security
agreement, and does not acknowledge that the waiver subject to subdivision 1 is void; or
(2) attempts to enforce a waiver that is void under subdivision 1.
History: 1987 c 396 art 3 s 1; 1997 c 126 s 6