1999 Minnesota Statutes

     571.912 Form of exemption notice. 

    The notice informing a debtor that an order for attachment, 
 garnishment summons, or levy by execution has been used to 
 attach funds of the debtor to satisfy a claim must be 
 substantially in the following form:  

 STATE OF MINNESOTA                            DISTRICT COURT 
 COUNTY OF ................         ........JUDICIAL DISTRICT
 ........................(Creditor)
 ........................(Debtor)
 TO:  Debtor                                EXEMPTION NOTICE

    An order for attachment, garnishment summons, or levy of 
 execution (strike inapplicable language) has been served on 
 ............ (bank or other financial institution) 
 ............... where you have an account.  

    Your account balance is $.............  

    The amount being held is $............  

    However, all or a portion of the funds in your account will 
 normally be exempt from creditors' claims if they are in one of 
 the following categories: 

    (1) relief based on need.  This includes the Minnesota 
 Family Investment Program (MFIP), Emergency Assistance (EA), 
 Work First Program, Medical Assistance (MA), General Assistance 
 (GA), General Assistance Medical Care (GAMC), Emergency General 
 Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA 
 Emergency Assistance (MSA-EA), Supplemental Security Income 
 (SSI), and Energy Assistance; 

    (2) Social Security benefits (Old Age, Survivors, or 
 Disability Insurance); 

    (3) reemployment compensation, workers' compensation, or 
 veterans' benefits; 

    (4) an accident, disability, or retirement pension or 
 annuity; 

    (5) life insurance proceeds; 

    (6) the earnings of your minor child and any child support 
 paid to you; or 

    (7) money from a claim for damage or destruction of exempt 
 property (such as household goods, farm tools, business 
 equipment, a mobile home, or a car).  

    The following funds are also exempt: 

    (8) all earnings of a person in category (1); 

    (9) all earnings of a person who has received relief based 
 on need, or who has been an inmate of a correctional 
 institution, within the last six months; 

    (10) 75 percent of every debtor's after tax earnings; and 

    (11) all of a debtor's after tax earnings below 40 times 
 the federal minimum wage. 

    TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:  

    Categories (10) and (11):  20 days 

    Categories (8) and (9):  60 days 

    All others:  no time limit, as long as funds are traceable 
 to the exempt source.  (In tracing funds, the first-in, 
 first-out method is used.  This means money deposited first is 
 spent first.)  The money being sought by the creditor is being 
 held in your account to give you a chance to claim an exemption. 

    TO CLAIM AN EXEMPTION:  

    Fill out, sign, and mail or deliver one copy of the 
 attached exemption claim form to the institution which sent you 
 this notice and mail or deliver one copy to the creditor's 
 attorney.  In the event that there is no attorney for the 
 creditor, then such notice shall be sent directly to the 
 creditor.  The address for the creditor's attorney or the 
 creditor is set forth below.  Both copies must be mailed or 
 delivered on the same day.  

    If they do not get the exemption claim back from you within 
 14 days of the date they mailed or gave it to you, they will be 
 free to turn the money over to the sheriff or the creditor.  If 
 you are going to claim an exemption, do so as soon as possible, 
 because your money may be held until it is decided. 

    IF YOU CLAIM AN EXEMPTION:  

    (1) nonexempt money can be turned over to the creditor or 
 sheriff; 

    (2) the financial institution will keep holding the money 
 claimed to be exempt; and 

    (3) seven days after receiving your exemption claim, the 
 financial institution will release the money to you unless 
 before then it receives an objection to your exemption claim.  

    IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM: 

    The institution will hold the money until a court decides 
 if your exemption claim is valid, BUT ONLY IF the institution 
 gets a copy of your court motion papers asserting the exemption 
 WITHIN TEN DAYS after the objection is mailed or given to you.  
 You may wish to consult an attorney at once if the creditor 
 objects to your exemption claim.  

    MOTION TO DETERMINE EXEMPTION:  

    At any time after your funds have been held, you may ask 
 for a court decision on the validity of your exemption claim by 
 filing a request for hearing which may be obtained at the office 
 of the court administrator of the above court. 

    PENALTIES:  

    If you claim an exemption in bad faith, or if the creditor 
 wrongly objects to an exemption in bad faith, the court may 
 order the person who acted in bad faith to pay costs, actual 
 damages, attorney fees, and an additional amount of up to $100.  

                               .............................
                               .............................
                               ............................. 
                               ............................. 
                               Name and address of (Attorney
                               for) Judgment Creditor

    EXEMPTION:  

    (If you claim an exemption complete the following): 

    (a) Amount of exemption claim.  

    / / I claim ALL the funds being held are exempt.  

    / / I claim SOME of the funds being held are exempt.  

          The exempt amount is $............  

    (b) Basis for exemption.  

    Of the eleven categories listed above, I am in category 
 number ............  (If more than one category applies, you may 
 fill in as many as apply.)  The source of the exempt funds is 
 the following:  

 .............................................................
 .............................................................
 .............................................................

    (If the source is a type of relief based on need, list the 
 case number and county:  

    case number:  ...............; 

    county:  ....................) 

    I hereby authorize any agency that has distributed relief 
 to me or any correctional institution in which I was an inmate 
 to disclose to the above named creditor or its attorney only 
 whether or not I am or have been a recipient of relief based on 
 need or an inmate of a correctional institute within the last 
 six months.  

    I have mailed or delivered a copy of the exemption notice 
 to the creditor's attorney.  

 DATED:  .............        .............................
                              DEBTOR 
                              .............................
                              DEBTOR ADDRESS

    HIST: 1990 c 606 art 3 s 24; 1992 c 464 art 1 s 56; 1993 c 156 
 s 17; 1994 c 488 s 8; 1999 c 107 s 66; 1999 c 159 s 149