[workoutguy]

My question involves collection proceedings in the State of: Minnesota

if a collector is threatening garnishment against me what happens if i refuse?

also would they garnish my paycheck or bank account? How much can they take out?

Thanks

[aardvarc]

If they take you to court, and the court determines that the debt is valid and is yours, they could be awarded the ability to attach whatever assets they can find - including seizing bank accounts AND garnishing wages.

[Betty3]

If they get a judgment against you & approval from the court, they are not going to ask you first if they can garnish wages or bank accounts. They will just do it.

wage garnishment exemption Mn: 75% of earnings or amount equal to 40 times the federal minimum hourly wage, whichever is greater

[workoutguy]

they can take 75% of my paycheck?

and can they touch 401k or ira accounts?

[Betty3]

No, 75% of wages are *exempt* from garnishment or amount equal to 40 times the federal minimum hourly wage, whichever is greater.
Here are the post-judgment *exemptions* Mn.:
Minnesota Post-Judgment Asset Exemptions


Homestead: Real property up to $200,000 ($500,000 if the homestead is used primarily for agriculture), but cannot exceed 160 acres rural or 1/2-acre urban. Proceeds exempt for one year.

Pensions and Retirement Benefits: ERISA-qualified plans, limited to present value of $57,000. Funds exempt for public employees and state employees. IRA exemptions for conventional, Roth, SEP and SIMPLE plans, limited to present value of $57,000.

Insurance: Life insurance proceeds if beneficiary is spouse or child of insured, up to $38,000, plus $9,500 per dependent. Police and firefighter benefits. Unmatured life insurance contract, dividends interest or loan value to $7,600, if insured is debtor or someone who supports debtor. Fraternal society benefits.

Personal Property: Burial place. Church pew. Motor vehicle up to $3,800 ($38,000 if modified for disabled person). Books and musical instruments, appliances, furniture, radio, phonographs and TV up to $8,550. Clothing. Food and utensils. Personal injury and wrongful death recoveries. Proceeds for damaged exempt property.

Tools of Trade: Farm machines, livestock, crops of farmers to $13,000 total. School teacher materials. Tools, machines, instruments, furniture, stock in trade and library up to $9,500 total.

Miscellaneous: Business partnership property. Minor child's earnings.

Wages: Greater of 75% or 40 times federal minimum hourly wage/week. Wages deposited into bank accounts for 20 days. Wages of released inmates paid within 6 months of release.

Public Benefits: Veteran's benefits. Workers' compensation. Unemployment compensation. AFDC. General or supplemental assistance. Supplemental security income, Crime victim's compensation.

Wild Card: None.