Bill > HF3188

This bill modifies garnishment and bankruptcy exemptions in Minnesota, primarily focusing on protecting a portion of a debtor's funds in depository accounts. Specifically, the bill creates a new exemption that allows debtors to keep up to $1,000 in one or more bank accounts from being garnished, regardless of the money's source. Financial institutions receiving a garnishment summons must now leave $1,000 or the total account balance (whichever is less) untouched. The bill prohibits debtors from claiming this new exemption alongside another existing exemption, and it does not apply to contractual setoffs or security interests. The changes aim to provide additional financial protection for individuals facing debt collection, ensuring they retain a minimal amount of funds for essential needs. These modifications will take effect on August 1, 2025, and will apply to legal actions commenced on or after that date, giving financial institutions and consumers time to understand and adapt to the new rules.

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https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3188&ssn=0&y=2025