Any financial obligation from a third party to the debtor can be levied. Instead of the third party paying the debtor, they send the payment to the Department of Revenue, and it is applied to the debtor’s unpaid debt. This is a one-time levy and requires the third party to send 100 percent of any payments due the debtor within 30 days of the levy notice. Examples of assets that can be taken by third party levies include:
- Debtor’s accounts receivable.
- Annual rent payments such as the rents paid by farmers for land use.
- The value of crops sold by farmers to cooperatives.
The provisions of Minn. Stat. §550.37 provide for certain exemptions from third party levies. The rules for exemptions are the same as for bank levies, except that no exemption claim form is sent to the debtor.
A third party levy will be released if the debtor proves the funds are exempt if the debtor no longer has a business relationship with the party levied or if bankruptcy is filed.