NCJ Number
74959
Date Published
Unknown
Length
14 pages
Annotation
Published by Minnesota's Office of the Attorney General, this paper explains how the legal processes of garnishment and writ of execution can be used to collect debts.
Abstract
Garnishments and writs of execution enable creditors to obtain property of the debtor that is under the control of a third person, such as wages held aby an employer or money deposited in a bank. A garnishment merely freezes the debtor's property in the hands of the garnishee, but an execution requires the person holding the debtor's property to release it to the creditor. Garnishment can adversely affect a person's job and credit rating and should be avoided by paying bills promptly or seeking an extension from a creditor. Usually creditors employ garnishment only when all other methods to collect a debt have failed. If a debtor fails to answer a creditor's lawsuit within the time allowed, a creditor can garnish wages or bank accounts without first going to court. Other situations are detailed when a creditor can garnish property by obtaining a court order before the case is actually tried. Procedures that a creditor must follow after obtaining a favorable judgement to garnish are outlined. Garnishees who hold the debtor's property must respond to the garnishment process, and their responsibilities are detailed. Minnesota law exempts a portion of everyone's earnings from garnishment or execution. Methods of calculating the amount of earnings subject to garnishment are described and illustrated with examples. According to Minnesota law, earnings exempted from garnishment are also exempt for 20 days after they are deposited in a bank account. Similar protections exist for public assistance funds and earnings of persons on public assistance or recently released from prison. It is illegal for an employer to fire a debtor because of garnishments or executions. A glossary is provided.