SF1606

The bill S.F. No. 1606 proposes changes to Minnesota's laws on garnishment and bankruptcy exemptions with a specific focus on protecting certain funds in a debtor's bank account from garnishment.

Key Provisions:

1. New Garnishment Exemption:

   • Up to $1,000 in a debtor's bank accounts held in financial institutions will be protected from garnishment.
   • This protection applies regardless of the money’s source.
   • This exemption is in addition to other existing exemptions.
   • A debtor cannot claim this exemption at the same time as an existing exemption under subdivision 28.

2. Bank's Responsibility:

   • If a financial institution receives a garnishment summons, it must leave at least $1,000 in the debtor’s accounts or the total balance (whichever is lower).

3. Exceptions:

   • The exemption does not apply when there is a lawful contractual setoff or security interest asserted by the financial institution.

These changes aim to ensure that individuals facing financial hardship retain at least a minimal balance in their accounts to help cover essential living expenses.