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Garnishment in Minnesota resumes

| Feb 11, 2021 | collections, Firm News

The Governor recently rescinded the Order made last May, which had precluded wage garnishment and bank levies. Garnishment of wages and levy of bank accounts may now take place in Minnesota, as long as the judgment was entered prior to May 4, 2020.

The state moratorium on evictions, and federal suspensions of foreclosures of most mortgages, are still in effect. Under the most recent extensions, the VA and USDA cannot foreclose on your home until after March 31, 2021. Fannie Mae and Freddie Mac may not foreclose on homes until after February 28, 2021.

Wages cannot be garnished if you are a recipient of public assistance, or have been within the last six months. The governor’s Order clarifies that the federal stimulus payments are exempt from creditors, but they are not deemed public assistance.

If you are suddenly facing garnishment, filing for bankruptcy might be your best if not only option, and we can help to that regard. I’m happy to discuss, just call or schedule a free consultation.

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