HF2543

HF2543 (Legislative Session 94 (2025-2026))

Various statutory forms pertaining to garnishment modified.

Related bill: SF2847

AI Generated Summary

Purpose of the Bill The bill aims to amend and update various statutory forms related to garnishment in the Minnesota Statutes. The focus is on providing clearer procedures and improving communication regarding the garnishment process, exemptions, and the rights and obligations of both creditors and debtors.

Main Provisions of the Bill - Notification Requirements: Before garnishing wages, creditors are required to notify the debtor at least ten days in advance about the intent to levy on earnings. This notification informs the debtor of potential exemptions and outlines steps to contest the garnishment if applicable. - Exemption Claims: The bill details the process for creditors and debtors to claim or contest exemptions on garnished funds. Debtors must provide bank statements and other documentation supporting their exemption claims. - Forms and Procedures: The statutory forms for garnishment notices, earnings disclosures, and exemption notices are standardized for clarity and ease of use. Forms include instructions and options for claiming exemptions based on various forms of income support, such as government assistance, wages, and benefits. - Penalties for Bad Faith: The bill establishes consequences for parties acting in bad faith, including fines and the payment of legal fees, either when incorrectly claiming exemptions or when a creditor disregards valid exemption claims without justification.

Significant Changes to Existing Law - Clarification of Exemptions: The bill provides a detailed list of exemptions, including government assistance programs and other protected funds (e.g., child support, disability payments). It clarifies how these exemptions are applied to funds in bank accounts or against wages. - Standardization of Procedure: The forms and process for notifying debtors of garnishments and handling claims of exemption are standardized, ensuring consistency across cases and improving the debtor's understanding of rights and processes.

Relevant Terms - Garnishment - Exemption - Levy - Judgment creditor - Disposable earnings - Government assistance programs (e.g., MFIP, GA, SNAP) - Bad faith actions - Legal notice and hearing procedures

Bill text versions

Introduction PDF file
1st Engrossment PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 19, 2025	House	Floor	Action	Introduction and first reading, referred to	Judiciary Finance and Civil Law
March 26, 2025	House	Floor	Action	Committee report, to adopt as amended and re-refer to	Commerce Finance and Policy
April 01, 2025	House	Floor	Action	Committee report, to adopt
April 01, 2025	House	Floor	Action	Second reading

Citations

[
  {
    "analysis": {
      "added": [
        "A new subsection clarifying disbursement rules."
      ],
      "removed": [
        "Eliminates previous requirement for municipal matching funds."
      ],
      "summary": "This bill modifies pension fund eligibility for volunteer firefighters under section 353G.06.",
      "modified": [
        "Adjusts pension payment schedule from annual to quarterly."
      ]
    },
    "citation": "353G.06"
  }
]