State Debt Laws
Minnesota Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Minnesota
Minnesota (MN) - At a Glance
| State Consumer Protection Law | Minnesota Collection Agencies Act |
| Source | Minn. Stat. ยง 332.31 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $10,000 in bank (earned income) |
| Homestead Exemption | $450,000 |
Key Protections in Minnesota
- High bank account exemption for earned income ($10,000)
- Very high homestead exemption ($450K)
- Collection agencies must be licensed
- Attorney General actively enforces debt collection laws
Wage Garnishment in Minnesota
After a court judgment, creditors in Minnesota can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Minnesota follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Minnesota
If a debt collector violates the FDCPA or Minnesota Collection Agencies Act:
- File with the Minnesota Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)