SF1606 (Legislative Session 94 (2025-2026))
Exemptions modification for garnishment and bankruptcy
Related bill: HF3188
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:
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.
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).
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
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 20, 2025 | Senate | Action | Introduction and first reading | ||
| February 20, 2025 | Senate | Action | Referred to | Judiciary 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"
}
]Progress through the legislative process
In Committee