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SF1606 (Legislative Session 94 (2025-2026))

Exemptions modification for garnishment and bankruptcy

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toJudiciary and Public Safety

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision exempting $1000 in depository accounts from garnishment."
      ],
      "removed": [],
      "summary": "This bill modifies exemptions related to garnishment under section 550.37.",
      "modified": []
    },
    "citation": "550.37"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends subdivision 4 of section 571.73 concerning garnishment procedures.",
      "modified": []
    },
    "citation": "571.73"
  }
]

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