Minnesota Laws on Recovery Judgments Through Wage Garnishment
Most states, including Minnesota, maintain laws that allow a creditor or other individual to seek a recovery judgment against a debtor who has failed to satisfy a debt or pay court-ordered obligations such as child support or alimony. The recovery judgment allows the creditor or whomever is owed money to pursue wage garnishment by requiring the debtor's employer to pay a portion of the debtor's wages to the creditor.
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Income Subject to Garnishment
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Any income that is currently controlled or in the possession of a third party may be garnished by an eligible creditor or any other person who has secured a court judgment against a debtor. Traditionally, a debtor's wages from employment or other sources are subject to garnishment under Minnesota law; however, not all types of income are subject to garnishment.
Exempt Income
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Income that is not subject to wage garnishment is called "exempt income". This includes things like Social Security benefits, pension plans, retirement benefits, and public assistance. However, Social Security benefits may be garnished to pay back taxes to the federal government, delinquent child-support payment or alimony.
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Garnishment Limitations On Non-Exempt Income
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The fact that a third party has secured a recovery judgment against a debtor does not mean that the creditor can collect all of the debtor's wages until the debt is paid. Under Minnesota law, a creditor is entitled to the lesser of 25 percent of the debtor's income or "the amount by which a debtor's weekly income exceeds 40 times the minimum wage." Additional amounts may be garnished for delinquent child-support payments.
Statute of Limitations For Garnishment Claims
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Most legal disputes are subject to a statute of limitations. If a claim is filed after this time, the case may be dismissed. In Minnesota, the statute of limitations for most recovery judgment actions to compel wage garnishment is six years. Other cases involving a breach of contract may be subject to a four-year statute of limitations.
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