A continuous levy requires that a third party send regular, periodic payments to the Minnesota Department of Revenue. When the debtor is a business, 100 percent of the funds owed to the debtor may be demanded from the third party. When the debtor is an individual, however, the levy is limited to 25 percent of…
A bank levy is a legal action that takes property and rights to obtain property, including bank deposit accounts, of the person liable for a delinquent tax or other agency debt. When the Minnesota Department of Revenue mails a Notice of Levy to financial institutions, they are required to freeze the debtor’s funds on the…
A wage levy, sometimes referred to as a garnishment, is a legal action used to take up to 25 percent of a debtor’s wages to pay a debt. The wage levy notice to an employer includes a disclosure form on which the employer calculates how much “additional withholding” will be taken from the debtor’s wages….
Collect tax debts first, then collect other agency debts in the order they were referred to the Department for collection. The Minnesota Department of Revenue’s wage levy for any type of debt takes precedence over a private garnishment after 70 days from service of the private garnishment to the employer. It does not take precedence…
The chart shows common assets subject to various types of levies: Property Subject to Levy Type of Levy Used W-2 wages, commissions and bonuses Wage Levy 1099 non-employee compensation, periodic rents Continuous Levy Checking and savings accounts at banks and credit unions Bank Levy Rights and shares in the stock of corporations Investment Levy Annual…
Wage Levy Wage levies take a portion of a debtor’s wages. Bank Levy Bank Levies take a debtor’s bank assets such as funds in a checking account. Continuous Levy Continuous Levies take all or a portion of a debtor’s payment for services (other than wages) performed for a third party on a continuous basis. Investment…
The following is example text from a Non-Earning Disclosure. For a formatted version, download the Non-Earnings Disclosure PDF or Non-Earnings Disclosure DOC. The text below and its PDF and DOC counterparts should not be used without first consulting with an experienced collections attorney. STATE OF MINNESOTA DISTRICT COURT COUNTY OF [COUNTY] FIRST JUDICIAL DISTRICT ____________________________________________________________________________…
The following is example text from a Garnishment Exemption Notice. For a formatted version, download the JGM 401 Garnishment Exemption Notice PDF or JGM 401 Garnishment Exemption Notice DOC. The text below and its PDF and DOC counterparts should not be used without first consulting with an experienced collections attorney. STATE OF MINNESOTA DISTRICT COURT…
The following posts provide examples of documents used in the garnishment process. The content of these posts should not be used without first consulting with an experienced Minnesota garnishment attorney. Affidavit of Service (AOS) Garnishment Example Template Affidavit of Service (AOS) Garnishment Summons Example Template Garnishment Exemption Notice Example Template Minnesota JGM 401 Garnishment Exemption…
The following is example text from a Garnishment Exemption Notice. For a formatted version, download the Garnishment Exemption Notice PDF or Garnishment Exemption Notice DOC. The text below and its PDF and DOC counterparts should not be used without first consulting with an experienced collections attorney. STATE OF MINNESOTA DISTRICT COURT COUNTY OF [COUNTY] FIRST…
The following is example text from an Affidavit of Service of Garnishment Summons. For a formatted version, download the AOS Garnishment Summons PDF or AOS Garnishment Summons DOC. The text below and its PDF and DOC counterparts should not be used without first consulting with an experienced collections attorney. STATE OF MINNESOTA DISTRICT COURT COUNTY…
The following is example text from an Affidavit of Service. For a formatted version, download the Affidavit of Service PDF or Affidavit of Service DOC. The text below and its PDF and DOC counterparts should not be used without first consulting with an experienced collections attorney. STATE OF MINNESOTA DISTRICT COURT COUNTY OF [COUNTY] FIRST…
The following is an example of a Garnishee Service Letter. This example should not be used without first consulting with an experienced collections attorney. [DATE] [GARNISHEE], [GARNISHEE STREET ADDRESS] [CITY], [STATE] [ZIP] Re: [DEBTOR] v. [CLIENT] Court File XXXX-XX-XX-XXXX Our File No. XXXX.XX Dear [DEBTOR]: Enclosed herewith and served upon you are the Garnishment Summons,…
In a number of recent cases, Minnesota courts have ordered mortgage companies to cover attorney’s fees in Minnesota foreclosure defense cases. Three examples are below. MN Fourth Judicial District (Hilleshiem v. Source Lending Corp.) MN Fourth Judicial District (Pelayo v. Ruben Gonzalez and Modificaciones de Prestamos) Wiley v. A & K Auto Sales Case 0:06-cv-04611-DWF-AJB…
Questions? by Valerie Everett What are my rights when a debt collector or creditor is trying to collect from me? Your rights as a consumer are protected under the Fair Debt Collection Act. What types of debt collection practices does the Fair Debt Collections Act disallow? Debt collectors may not harass or abuse you or any third…
Money Tunnel by Keith Ramsey If certain statutory requirements are met, an employer who receives a garnishment notice concerning an employee is required to garnish the appropriate amount from the employee’s wages.290 The maximum amount which may be garnished from an employee’s wages is the lesser of 25 percent of the employee’s disposable earnings or…
This article discusses the basics of Minnesota foreclosures. This part addresses the impact a foreclosure of a first mortgage has on a second mortgage (home equity loans). This is part five of a series on Minnesota foreclosures. Foreclosure Basics Foreclosure by Advertisement Foreclosure by Action Deficiency Judgments Foreclosure of a 2nd Mortgage Second Mortgage Foreclosures…
This is an example of a letter demanding payment of unpaid debts. For more demand letters, see the Minnesota Demand Letters page. Demand for Full Amount Due Letter Template [DATE] [DEBTOR] [STREET ADDRESS] [CITY] [STATE] [ZIP] Re: Loans in Default to [CLIENT] Gentlemen: I have been retained to represent [CLIENT] regarding three loan defaults. This…
This is an example demand letter attempting to collect an unpaid debt. For more demand letters, see the Minnesota Demand Letters page. Watch This Before You Continue Demand for Payment Letter Template VIA EMAIL AND US MAIL February 8, 2012 [EMAIL] [STREET ADDRESS] [CITY][STATE][ZIP] Re: Amounts owed to [CLIENT] Dear [DEBTOR]: This firm represents [CLIENT]…
Below is an example demand letter attempting to collect an unpaid debt. For more demand letters, see the Minnesota Demand Letters page. What is a Demand Letter? Example Demand Letter Template [DATE] [DEBTOR] [STREET ADDRESS] [CITY], [STATE] [ZIP] Account: [DEBTOR’S ACCOUNT] Invoice #: [INVOICE NUMBER] Invoice Date: [INVOICE DATE] Invoice Amount: $[INVOICE AMOUNT] THIS IS…
This is an example demand letter attempting to collect an unpaid debt. For more demand letters, see the Minnesota Demand Letters page. Watch This Before You Continue Demand Letter Sample: [DATE] Sent by U.S. Mail [DEBTOR] [STREET ADDRESS] [CITY][STATE][ZIP] Re: Collection of [CLIENT’S BUSINESS]’s Fees for [ITEMS] Dear [DEBTOR]: This firm represents [CLIENT] and [CLIENT’S…
The following posts give examples of demand letters used in the collection of debts. The examples are intended only as a reference and should not be used without first consulting with an experienced collections attorney. Watch This Before You Continue Example Demand Letters Example Written Demand for Payment of Overtime Wages Not Paid Example Written…
Replevin is an action to return goods that are wrongfully held by another person or party.
Just because you are legally owed money, doesn’t mean it is easy to get that money. You have probably heard the saying, “you can’t squeeze blood from a turnip.” If the debtor has no money and no assets it will be difficult to get your money. On the other hand, what if your debtor is…
If you have a judgment you are trying to collect, and the debtor has funds at a bank or other financial institution, you may garnish the debtor’s account. Obtaining the judgment and finding out where the debtor has assets is probably the most difficult and expensive part of debt collection. In order to garnish a…
Once you have a judgment against a debtor, and know the debtor’s assets, you still have to collect on your judgment. One way to do that is to garnish funds the debtor has at a bank or other financial institution. The Garnishment Procedure: Step 1 – The Summons If the debtor has funds at a…
If someone owes you a debt but refuses to pay, there are things you can do to collect that debt. If you know that the debtor has a steady income, you can garnish the debtor’s wages. If you don’t know if the debtor is employed, you can follow legal procedures for debt collection and obtain…
Once you have a judgment against a non-paying debtor, it may be time to garnish his or her wages. Step 1: Serve Notice of Garnishment You must serve the debtor with a Garnishment Exemption Notice and Notice of Intent to Garnish Earnings Within 10 Days upon the debtor at least 10 days before attempting to…
Attempting to collect a debt can be difficult, even when you already have a court order showing that the debt is owed to you. Not every debtor will pay a debt simply because a court has ruled he or she owes it. Seek Court Intervention When debtors won’t simply pay up, you may need to…
You can inform the court, through an Affidavit in Support of Order to Show Cause, of the debtor’s noncompliance and ask the court to require the debtor to appear in court and tell the court why the debtor failed to respond to your questions.