What Is the Most That Can Be Garnished Out of Wages in the State of Minnesota?

Wage garnishment is a way for a creditor or a collector to recover unpaid debt. Federal laws, such as Consumer Credit Protection Act, limit the amount that a creditor can withhold. Collectors must follow a set of procedures before they can starts taking money from the debtor's paycheck or bank account.

Garnishment Process

Minnesota law follows the federal laws when it comes to the garnishment process. Before a creditor can garnish wages, he must file a lawsuit against the debtor and obtain a judgment to collect debt. If a debtor fails to respond to the lawsuit, the creditor receives a default judgment and can start collecting the unpaid debt by withholding money from the debtor's paycheck or bank account.

Protections from Garnishment

Federal laws prohibit creditors from garnishing more than 25 percent of the debtor's net income or 40 times the minimum wage, whichever is greater. Minnesota law is more generous by giving the creditors 40 times the minimum wage, while federal laws allow 30 times the minimum wage. Creditors cannot garnish wages for six months after a debtor have received public assistance. Collectors cannot take the debtor's home, car, furniture and possessions up to certain values.

Garnishment Exemption

If a debtor receives public assistance, he protect his wages by returning the "Garnishment Exemption Notice," a form the creditor must send at least 10 days before withholding any money. A copy of this form should be mailed to the creditor's attorney. The debtor should file the "Exemption Notice" with his bank if the creditor intends to withdraw funds from a bank account.

Employee Protection Laws

Title III of the Consumer Credit Protection Act prohibits an employer from discharging an employee whose wages are being garnished. However, Title III does not protect an employee from being discharged if his wages are being garnished for the second or subsequent times. Violations of the Consumer Credit Protection Act can be reported directly to the U.S. Department of Labor. Violations of the Minnesota statutes can be reported to the Minnesota Attorney General's Office.