2001 Minnesota Statutes

     571.72 General garnishment provisions. 

    Subdivision 1.    Rules of civil procedure.  Unless this 
 chapter specifically provides otherwise, the Rules of Civil 
 Procedure for the District Courts shall apply in all proceedings 
 under this chapter. 

    Subd. 2.    Service of a garnishment summons.  To 
 enforce a claim asserted in a civil action venued in a court of 
 record, a garnishment summons may be issued by a creditor and 
 served upon the garnishee in the same manner as other summons in 
 that court of record, except that service may not be made by 
 publication.  Service of a garnishment summons on the garnishee 
 may also be made by certified mail, return receipt requested.  A 
 garnishment summons served by certified mail is effective if 
 served at the garnishee's regular place of business.  The 
 effective date of service by certified mail is the time of 
 receipt by the garnishee.  A single garnishment summons may be 
 addressed to two or more garnishees but must state whether each 
 is summoned separately or jointly. 

    The garnishment summons must state: 

    (1) the full name of the debtor, the debtor's last known 
 mailing address, and the amount of the claim that remains 
 unpaid; 

    (2) the date of the entry of judgment against the debtor or 
 that the debtor is in default pursuant to Rule 55.01 of the 
 Minnesota Rules of Civil Procedure for the District Courts.  
 Where there is a prejudgment garnishment pursuant to section 
 571.93, the garnishment summons must include a copy of the court 
 order; 

    (3) if the garnishment is on any indebtedness, money, or 
 property other than earnings, the garnishee shall serve upon the 
 creditor and upon the debtor within 20 days after service of the 
 garnishment summons, a written disclosure, of the garnishee's 
 indebtedness, money, or other property owing to the debtor and 
 answers to all written interrogatories that are served with the 
 garnishment summons.  The garnishment summons shall also state 
 that if the garnishment is on earnings and the debtor has 
 garnishable earnings, the garnishee shall serve the disclosure 
 within ten days of the last payday to occur within the 70 days 
 after the date of service of the garnishment summons; 

    (4) that the creditor shall not require disclosure of the 
 disposable earnings, indebtedness, money, or property of debtor 
 in the garnishee's possession or under the garnishee's control 
 in excess of 110 percent of the amount of the claim that remains 
 unpaid; 

    (5) that the garnishee shall retain disposable earnings, 
 indebtedness, money, or property of the debtor in the 
 garnishee's possession or under the garnishee's control not in 
 excess of 110 percent of the amount of the claim that remains 
 unpaid, until the creditor causes a writ of execution to be 
 served upon the garnishee, until the debtor authorizes release 
 to the creditor, until the creditor authorizes release to the 
 debtor, upon court order, or by operation of law; 

    (6) that after the expiration of the period of time 
 specified in section 571.79 from the date of service of the 
 garnishment summons, the garnishee's retention obligation 
 automatically expires; 

    (7) that an assignment of wages made by the debtor within 
 ten days before the service of the first garnishment summons on 
 a debt is void and that any indebtedness to the garnishee 
 incurred with ten days before the service of the first 
 garnishment summons on a debt may not be set off against amounts 
 otherwise subject to the garnishment. 

    Subd. 3.    Representation by an attorney.  Whenever a 
 creditor is represented by an attorney, a responsive pleading or 
 document from the garnishee or debtor under this chapter must be 
 served on the creditor's attorney. 

    Subd. 4.    Service of garnishment summons on debtor.  A 
 copy of the garnishment summons and copies of all other papers 
 served on the garnishee must be served by mail at the last known 
 mailing address of the debtor not later than five days after the 
 service is made upon the garnishee.  The first time a 
 garnishment summons is served on the debtor pursuant to section 
 571.71, clause (2), the creditor shall also serve a copy of the 
 affidavit of service of the original summons and complaint.  
 Service of the garnishment documents on the debtor is effective 
 upon mailing. 

    Subd. 5.    Garnishment disclosure form.  The creditor 
 shall serve with the garnishment summons the applicable 
 garnishment disclosure form substantially in the form set forth 
 in section 571.75.  The creditor may also serve written 
 interrogatories with the garnishment summons. 

    Subd. 6.    Bad faith claim.  If, in a proceeding 
 brought under section 571.91, 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 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 
 creditor disregarded the claim of exemption in bad faith, the 
 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.  

    Subd. 7.    Forms.  No creditor shall use a form that 
 contains alterations or changes from the statutory forms that 
 mislead debtors as to their rights and the garnishment procedure 
 generally.  If a court finds that a creditor has used a 
 misleading form, the debtor shall be awarded actual damages, 
 costs, reasonable attorney's 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 garnishments 
 of 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 
 garnishments if the judgment creditor is a county and the 
 employer is notified by the county when the judgment is 
 satisfied. 

    Subd. 8.    Exemption notice.  In every garnishment 
 where the debtor is a natural person, the debtor shall be 
 provided with a garnishment exemption notice.  If the creditor 
 is garnishing earnings, the earnings exemption notice provided 
 in section 571.924 must be served ten or more days before the 
 service of the first garnishment summons.  If the creditor is 
 garnishing funds in a financial institution, the exemption 
 notice provided in section 571.912 must be served with the 
 garnishment summons.  In all other cases, the exemption notice 
 must be in the following form and served on the debtor with a 
 copy of the garnishment summons. 

    

 STATE OF MINNESOTA                             DISTRICT COURT
 COUNTY OF ..................    ............JUDICIAL DISTRICT
 .................(Creditor)
 against
 .................(Debtor)                    EXEMPTION NOTICE
 and
 .................(Garnishee)

    A Garnishment Summons is being served upon you.  Some of 
 your property may be exempt and cannot be garnished.  The 
 following is a list of some of the more common exemptions.  It 
 is not complete and is subject to section 550.37 of the 
 Minnesota Statutes and other state and federal laws.  The dollar 
 amounts contained in this list are subject to the provisions of 
 section 550.37, subdivision 4a, at the time of garnishment.  If 
 you have questions about an exemption, you should obtain legal 
 advice. 

    (1) a homestead or the proceeds from the sale of a 
 homestead; 

    (2) household furniture, appliances, phonographs, radios, 
 and televisions up to a total current value of $5,850; 

    (3) a manufactured (mobile) home used as your home; 

    (4) one motor vehicle currently worth less than $2,600 
 after deducting any security interest; 

    (5) farm machinery used by an individual principally 
 engaged in farming, or tools, machines, or office furniture used 
 in your business or trade.  This exemption is limited to 
 $13,000; 

    (6) relief based on need.  This includes: 

    (i) Minnesota Family Investment Program (MFIP) and Work 
 First Program; 

    (ii) Medical Assistance (MA); 

    (iii) General Assistance (GA); 

    (iv) General Assistance Medical Care (GAMC); 

    (v) Emergency General Assistance (EGA); 

    (vi) Minnesota Supplemental AID (MSA); 

    (vii) MSA-Emergency Assistance (MSA-EA); 

    (viii) Supplemental Security Income (SSI); 

    (ix) Energy Assistance; and 

    (x) Emergency Assistance (EA); 

    (7) social security benefits; 

    (8) unemployment benefits, workers' compensation, or 
 veteran's benefits; 

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

    (10) life insurance proceeds; 

    (11) earnings of your minor child; and 

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

    Subd. 9.    Motion to determine objections.  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. 

    HIST: 1990 c 606 art 3 s 4; 1993 c 156 s 15; 1994 c 488 s 8; 
 1999 c 107 s 66; 1999 c 159 s 148; 2000 c 343 s 4; 2000 c 405 s 
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