Posts

Gov. Walz Suspends Garnishments

Governor Tim Walz just issued an executive order halting any garnishment of bank accounts or wages for consumer debts. Violators are subject to a $25,000 penalty. There is an exception for child support.   Also, consistent with what we…

Debt resolution comparison chart

I don’t simply assume that anybody with debt issues needs or wants to file bankruptcy. In fact, some people shouldn’t file bankruptcy, or they want to try alternatives before filing. For those considering the advantages and disadvantages…
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How much can a creditor garnish in Minnesota?

Typically a creditor can garnish 25% of your wages. If you are already paying child support, that would typically count against the 25%, so sometimes a child support obligor can be exempt from wage garnishment by a private judgment creditor.…
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What is a “Garnishment Summons and Disclosure Notice and Exemption Form”

This means that your creditor has served a writ of execution on your bank, and unless the funds are Social Security, in which case the bank is permitted to disregard this pursuant to treasury regulations, the bank will put a freeze on your account,…
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What is a “Demand for Disclosure and Disclosure Form?”

This means that you have gotten to the end of the collection cycle, and the creditor has a judgment and wants to know what your assets are, including where you bank, and what your income is, including the name of your employer. This might come…
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What is a "Garnishment Exemption Notice and Notice of Intent to Garnish Earnings?"

If you've been served one of these (Garnishment Summons), it means you've probably come to the end of the collections cycle where you need to do something about it. There is a Judgment against you, so rule #1 is to keep your money out of the…
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Can my Spouse’s Judgment Creditor Levy on Funds in Our Joint Account?

Yes, but you if you can prove that the most recent source of funds is your earnings, they will have to give it back. This can be fairly complicated, and they can keep levying on your bank account. The safer course of action would be for you…
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Creditors are trying to garnish my wages, how can I prevent this from happening?

Filing bankruptcy is the short (and best) answer. Of course, sometimes creditors will threaten to garnish, but they can only do so if they have gotten a judgment, and know where you work. So if that’s the case, you are running out of time. If…

If I file chapter 7 or 13 will this stop the judgments that have been filed against me by creditors?

A bankruptcy filing stops collection, and the discharge makes judgments void, but they will stay on your credit report for 10 years from when the judgment was entered.  There is an additional procedure you can go through under state law, after…