Stop Wage Garnishment in Minnesota

Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

There are ways to avoid wage garnishment in Arkansas.

Summary: Wage garnishment can take a serious bite out of your wallet. Luckily, MN Stat § 571.922 prevents wage garnishment of more than 25% of a debtor’s disposable earnings in Minnesota. Other state laws protect debtors from excessive wage garnishment. You can avoid wage garnishment altogether by responding to your lawsuit with SoloSuit.

Receiving notification of impending wage garnishment isn’t just bad news—it’s awful. Despite your objections, a creditor, ex-spouse, tax authority, or other entity will receive a portion of your paycheck until you repay your debt.

Wage garnishment can severely hinder your ability to pay your other obligations, like rent and car payments. If you struggled to make ends meet before, wage garnishment will worsen the situation.

What you need to know about wage garnishment

To obtain a wage garnishment against you, a creditor or other entity usually needs a judge’s consent. That occurs when they successfully sue you for debt.

For instance, if your creditor decides to file a debt lawsuit against you because you haven’t paid your bills, and if you don’t file an Answer or attempt to defend yourself, they’ll probably win their case. The judge will order a default judgment, which they can use to garnish your wages.

Prevent potential wage garnishment by fighting your debt lawsuit. SoloSuit’s Debt Answer service can help.

Occasionally, entities can garnish your wages without a judge’s approval. If you owe back taxes to the IRS or your state tax agency, they can start the wage garnishment process against you. Similarly, federal student loan providers and ex-spouses to whom you owe child support can also garnish your wages.

Minnesota wage garnishment laws can protect you

Each state has its own legal requirements for wage garnishment. Minnesota is no different.

Let’s start with the limitations on wage garnishment. According to MN Stat § 571.922, most wage garnishments (except for child support) will be the lesser of the following:

25% of the debtor’s disposable earnings.
The debtor’s disposable earnings minus 40 times the current Minnesota minimum wage ($10.59 per hour as of January 1, 2023) OR 40 times the current federal minimum wage ($7.25 hourly).

According to Minnesota law, disposable earnings include any earnings after deducting required legal withholdings, such as federal and state tax. If you earn less than $290 weekly, creditors cannot garnish your wages.

Let’s look at an example.

Example: Julie is facing a wage garnishment from an old creditor. The creditor obtained a judgment for $1,500 against Julie. Her paycheck is $600 after taxes each week. According to Minnesota law, her creditor can garnish her paycheck for $150 weekly (25% of her disposable income) until she repays her debt — this is the lesser of the two options given under MN Stat § 571.922. If the employer were to garnish her wages for the amount her pay exceeds the Minnesota minimum wage, the garnishment would be $600 minus (40 x $10.59 per hour), or $176.40. Minnesota requires the garnishment to be the lesser of the two alternatives.

People who face wage garnishment for back child support are subject to different rules. Garnishment varies from 50 to 65% of the debtor’s disposable income, depending on the age of the debt and whether the debtor has a new spouse or dependent child.

Some types of income are exempt from garnishment

It is possible to exempt part of your income from wage garnishment if you receive financial or other assistance from government programs. However, you must fill out an exemption form — an exemption is not automatic. People may obtain an exemption if they receive assistance under these programs:

Diversionary Work Program
Energy and/or Emergency Assistance
Emergency General Assistance
General Assistance
General Assistance Medical Care
Medical Assistance
Minnesota Family Investment Program
Minnesota Supplemental Aid
MSA Emergency Assistance
Supplemental Security Income

General rules in Minnesota stipulate that creditors cannot garnish your wages for two months following the period when you last received government assistance. However, if you fail to file the appropriate forms, you’ll give up your right to an exemption.

Know how to file an exemption request for wage garnishment

Every debtor facing a wage garnishment receives a Notice of Intent to Garnish Earnings. Each Notice contains another paper, the Debtor’s Exemption Claim Notice. You must fill out the Debtor’s Exemption Claim form and provide supporting paperwork, such as your bank statements.

You have up to ten days to return the Debtor’s Exemption Claim form to your creditor. If you don’t file the claim promptly, the garnishment will begin and can continue for up to 70 days.

What to do if a creditor improperly garnishes your wages in Minnesota

If you file a legitimate exemption form within the allotted time and your creditor starts garnishing your wages anyway, you must petition your local Minnesota court. Hire a lawyer experienced in wage garnishment to prove your eligibility for the exemption.

If the court finds that the creditor engaged in bad faith garnishment of your wages, the creditor will be responsible for your legal costs, damages, and a maximum $100 fine.

Take every action to avoid wage garnishment

As you can see, wage garnishment can severely damage your after-tax income. You may find it challenging to keep up with your other responsibilities, and this will only worsen your financial problems.

To avoid wage garnishment, it’s best to work with your creditor to come to a solution before your court date. Find the means to pay off the debt before it becomes a serious issue. If you can’t find the money to repay the obligation, attempt to settle it.

Often, creditors are willing to settle old debts because they know that the administrative burden of wage garnishment can outweigh the benefits. Rather than dealing with your employer and court paperwork, they’d rather accept a one-time settlement payment that’s less than the total value of your obligation.

Settling your debt may sound difficult since you’ll need to come up with the money you may not have in savings, but it’s much better than dealing with ongoing wage garnishment. Explore all your options before allowing a creditor to garnish your wages.

Are you facing a debt lawsuit? Settle your debt with the help of SoloSettle.

Watch the following video to learn more about how to settle a debt and avoid wage garnishment in Minnesota:

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started