Minnesota Procedural Requirements for Wage Garnishments

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Minnesota Procedural Requirements

If a judgment has been docketed in district court for at least 30 days, and the judgment is not satisfied, the district court in the county in which the judgment originated shall, upon the request of the judgment creditor, order the judgment debtor to mail by certified mail to the judgment creditor information as to the nature, amount, identity, and locations of all of the debtor's assets, liabilities, and personal earnings. Minn. Statute. Ann. _ 550.011.

In aid of the judgment or execution, the judgment creditor may obtain discovery from any person, including the judgment debtor, in the manner provided by these rules. Minn. R. Civil. P. 69. After the issuing or return of an execution against property of the judgment debtor, upon proof, by affidavit or otherwise, to the satisfaction of the judge, that any person has property of the judgment debtor, or is indebted to the judgment debtor in an amount exceeding $10, the judge may require such person, or any officer thereof if a corporation, upon such to any party as may seem proper, to appear and answer concerning the same. Minn. Statute. Ann. _ 575.07. When a judgment requires the payment of money, it may be enforced by execution. Minn. Statute. Ann. _ 550.02.

The sheriff may levy upon money or other indebtedness owed by a third party to the judgment debtor. The sheriff may serve a copy of the writ of execution through a registered or certified letter or by personal service to the third party. If the levy is upon funds at a financial institution, the third party shall be paid a $15 fee at the time of the service of the writ of execution. The $15 shall not be paid where the funds being levied on are being retained pursuant to a garnishment previously served in compliance with chapter 571. This fee may be recovered by the judgment creditor as an allowable cost. The judgment creditor shall provide the $15 fee to the sheriff to be paid to the third party. If a third party is required to appear and submit to oral examination, the third party shall be tendered, in advance of the examination, fees and mileage for attendance at the rate allowed by law to a witness. These fees may be recovered by the judgment creditor as an allowable disbursement. In extraordinary cases, the third party may be allowed additional sums the court considers reasonable for attorney fees and other necessary expenses. The court shall then determine which party bears the burden of this expense. Minn. Statute. Ann. _ 550.135.

When the sheriff is levying upon funds at a financial institution, along with the writ of execution and the exemption notice, the sheriff shall serve upon the financial institution an execution disclosure form. If the levy is on funds of a judgment debtor who is a natural person and if the funds to be levied are held on deposit at any financial institution, the judgment creditor or its attorney shall provide the sheriff with two copies of an exemption notice. The sheriff shall serve both copies of the exemption notice on the financial institution, along with the writ of execution. However, if the execution is on funds that have previously been garnished, the judgment creditor is not required to serve additional exemption notices. In that event, the execution levy shall only be effective as to the funds that were subject to the prior garnishment. Upon receipt of the writ of execution and exemption notices, the financial institution shall retain as much of the amount due under the writ of execution as the financial institution has on deposit owing the judgment debtor, but not more than 110 percent of the amount remaining due on the judgment. Minn. Statute. Ann. _ 550.143.

An attorney for a judgment creditor may also execute on a money judgment by levying on an indebtedness owed to the judgment debtor by a third party. The attorney for the judgment creditor must obtain a writ of execution before the attorney can execute. No more than $5,000 may be recovered by a single execution levy. Minn. Statute. Ann. _ 551.01. An attorney levying on funds at a financial institution must follow the same procedures as a sheriff as outlined above. See Minn. Statute. Ann. __ 551.04, .05.

However, when an attorney is levying on the funds, the financial institution is not required to retain more than 100 percent of the amount remaining due on the judgment, or $5,000, whichever is less. In addition to the above procedures, a creditor may institute garnishment proceedings under chapter 571 (Minn. Statute. Ann. _ 571.71, et seq.). at any time after entry of a money judgment in a civil action.

Interest Rate at which Judgments Accrue

When a judgment or award is for the recovery of money, interest from the time of the verdict, award, or report until judgment is finally entered shall be computed as simple interest per annum. The rate of interest shall be based on the secondary market yield of one year United Statutees treasury bills, calculated on a bank discount basis. During each calendar year, interest shall accrue on the unpaid balance of the judgment or award from the time that it is entered or made until paid, at the annual rate discussed above. Minn. Statute. Ann. _ 549.09.

Note: Special rules apply to pre-verdict, pre-award, or pre-report interest on pecuniary damages. See Minn. Statute. Ann. _ 549.09(1)(b). Applicable Forms Sheriff's Exemption Notice, Minn. Statute. Ann. _ 550.143(3) Execution Disclosure Form, Minn. Statute. Ann. _ 550.143(2). Notice of Third Party Levy and Disclosure Form, Minn. Statute. Ann. _ 551.04(4). Attorney's Exemption Notice, Minn. Statute. Ann. _ 551.05(1a).