1.2relating to creditor remedies; prohibiting prejudgment garnishment in certain
1.3circumstances;amending Minnesota Statutes 2008, sections 551.05, subdivisions
1.41a, 3, 4, by adding a subdivision; 571.71; 571.72, subdivision 4; 571.79; 571.912;
1.5571.914, subdivisions 1, 2, 4; 571.93, subdivision 1; repealing Minnesota
1.6Statutes 2008, sections 551.05, subdivisions 5, 6; 571.914, subdivision 3.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2008, section 551.05, subdivision 1a, is amended to read:
1.9    Subd. 1a. Exemption notice. If the writ of execution is being used by the attorney
1.10to levy funds of a judgment debtor who is a natural person and if the funds to be levied are
1.11held on deposit at any financial institution, the attorney for the judgment creditor shall
1.12serve with the writ of execution two copies of an exemption notice. The notice must be
1.13substantially in the form set forth below. Failure of the attorney for the judgment creditor
1.14to send the exemption notice renders the execution levy void, and the financial institution
1.15shall take no action. However, if this subdivision is being used to execute on funds that
1.16have previously been garnished in compliance with section 571.71, the attorney for
1.17judgment creditor is not required to serve an additional exemption notice. In that event,
1.18the execution levy shall only be effective as to the funds that were subject to the prior
1.19garnishment. Upon receipt of the writ of execution and exemption notices, the financial
1.20institution shall retain as much of the amount due under section 550.04 as the financial
1.21institution has on deposit owing to the judgment debtor, but not more than 100 percent of
1.22the amount remaining due on the judgment, or $10,000, whichever is less.
1.23The notice informing a judgment debtor that an execution levy has been used
1.24to attach funds of the judgment debtor to satisfy a claim must be substantially in the
1.25following form:

2.1	STATE OF MINNESOTA				DISTRICT COURT
2.2	County of .....				..... JUDICIAL DISTRICT
2.3 2.4	.....	(Judgment Creditor)
2.5	.....	(Judgment Debtor)
2.6	TO: Judgment Debtor				EXEMPTION NOTICE

2.7An order for attachment, garnishment summons, or levy of execution (strike
2.8inapplicable language) has been served on ............. (bank or other financial institution
2.9where you have an account).
2.10Your account balance is $........
2.11The amount being held is $........
2.12However, all or a portion of the funds in your account will normally be exempt from
2.13creditors' claims if they are in one of the following categories:
2.14(1) relief based on need. This includes the Minnesota Family Investment Program
2.15(MFIP), Work First Program, Medical Assistance (MA), General Assistance (GA),
2.16General Assistance Medical Care (GAMC), Emergency General Assistance (EGA),
2.17Minnesota Supplemental Aid (MSA), MSA Emergency Assistance (MSA-EA),
2.18Supplemental Security Income (SSI), and Energy Assistance;
2.19(2) Social Security benefits (Old Age, Survivors, or Disability Insurance);
2.20(3) unemployment benefits, workers' compensation, or veterans' benefits;
2.21(4) an accident, disability, or retirement pension or annuity;
2.22(5) life insurance proceeds;
2.23(6) the earnings of your minor child and any child support paid to you; or
2.24(7) money from a claim for damage or destruction of exempt property (such as
2.25household goods, farm tools, business equipment, a mobile home, or a car).
2.26The following funds are also exempt:
2.27(8) all earnings of a person in category (1);
2.28(9) all earnings of a person who has received relief based on need, or who has been
2.29an inmate of a correctional institution, within the last six months;
2.30(10) 75 percent of every judgment debtor's after tax earnings; or
2.31(11) all of a judgment debtor's after tax earnings below 40 times the federal
2.32minimum wage.
2.33TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
2.34Categories (10) and (11): 20 days
2.35Categories (8) and (9): 60 days
2.36All others: no time limit, as long as funds are traceable to the exempt source. (In
2.37tracing funds, the first-in, first-out method is used. This means money deposited first
3.1is spent first.) The money being sought by the judgment creditor is being held in your
3.2account to give you a chance to claim an exemption.
3.3TO CLAIM AN EXEMPTION:
3.4Fill out, sign, and mail or deliver one copy of the attached exemption claim form to
3.5the institution which sent you this notice and mail or deliver one copy to the judgment
3.6creditor's attorney. The address for the judgment creditor's attorney is set forth below.
3.7Both copies must be mailed or delivered on the same day.
3.8NOTE: You may help resolve your claim faster if you send to the creditor's
3.9attorney written proof or documents that show why your money is exempt. If
3.10you have questions regarding the documents to send as proof of an exemption,
3.11call the creditor's attorney. If you do not send written proof and the creditor's
3.12attorney has questions about your exemption claim, the creditor's attorney
3.13may object to your claim which may result in a further delay in releasing your
3.14exempt funds.
3.15If they do not get the exemption claim back from you within 14 days of the date
3.16they mailed or gave it to you, they will be free to turn the money over to the attorney for
3.17the judgment creditor. If you are going to claim an exemption, do so as soon as possible,
3.18because your money may be held until it is decided.
3.19IF YOU CLAIM AN EXEMPTION:
3.20(1) nonexempt money can be turned over to the judgment creditor or sheriff;
3.21(2) the financial institution will keep holding the money claimed to be exempt; and
3.22(3) seven days after receiving your exemption claim, the financial institution will
3.23release the money to you unless before then it receives an objection to your exemption
3.24claim.
3.25IF THE JUDGMENT CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
3.26the institution will hold the money until a court decides if your exemption claim is
3.27valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting the
3.28exemption WITHIN TEN DAYS after the objection is personally served on you, or within
3.2913 days from the date the objection is mailed to you. You may wish to consult an attorney
3.30at once if the judgment creditor objects to your exemption claim.
3.31MOTION TO DETERMINE EXEMPTION:
3.32At any time after your funds have been held, you may ask for a court decision on the
3.33validity of your exemption claim by filing a request for hearing which may be obtained
3.34at the office of the court administrator of the above court.
3.35PENALTIES:
4.1If you claim an exemption in bad faith, or if the judgment creditor wrongly objects
4.2to an exemption in bad faith, the court may order the person who acted in bad faith to pay
4.3costs, actual damages, attorney fees, and an additional amount of up to $100.

4.4		.....
4.5		.....
4.6		.....
4.7		.....
4.8 4.9		Name and address of (Attorney for) Judgment Creditor

4.10EXEMPTION:
4.11(a) Amount of exemption claim.
4.12/ / I claim ALL the funds being held are exempt.
4.13/ / I claim SOME of the funds being held are exempt.

4.14

The exempt amount is $ .....

4.15(b) Basis for exemption.
4.16Of the 11 categories listed above, I am in category number ............ (If more than one
4.17category applies, you may fill in as many as apply.) The source of the exempt funds is
4.18the following:
..... 4.19
..... 4.20
..... 4.21
4.22(If the source is a type of relief based on need, list the case number and county:
4.23case number: ...............;
4.24county: ....................)
4.25I hereby authorize any agency that has distributed relief to me or any correctional
4.26institution in which I was an inmate to disclose to the above named judgment creditor's
4.27attorney only whether or not I am or have been a recipient of relief based on need or an
4.28inmate of a correctional institute within the last six months.
4.29I have mailed or delivered a copy of the exemption notice to the judgment creditor's
4.30attorney at the address indicated above.

4.31			.....
4.32			DEBTOR
4.33	DATED: .....		.....
4.34			.....
4.35			.....
4.36			DEBTOR ADDRESS
5.1			.....
5.2			DEBTOR TELEPHONE NUMBER

5.3    Sec. 2. Minnesota Statutes 2008, section 551.05, subdivision 3, is amended to read:
5.4    Subd. 3. Objection to exemption claim. Objection shall be interposed by mailing
5.5or delivering one copy of the written objection to the financial institution and one copy of
5.6the written objection to the judgment debtor along with a copy of the judgment debtor's
5.7claimed exemption form. Both copies of an objection to an exemption claim shall be
5.8mailed or delivered on the same date. The financial institution may rely on the date
5.9of mailing or delivery of a notice to it in computing any time periods in this section.
5.10The written objection must be substantially in the form specified in subdivision 5. If a
5.11judgment creditor objects to a judgment debtor's exemption claim, the judgment creditor
5.12shall obtain from the court administrator or a designated motion calendar deputy a date
5.13and time for an evidentiary hearing on its objection. The judgment creditor shall serve on
5.14the judgment debtor and financial institution, personally or by first class mail, a notice
5.15of hearing on creditor's objection to debtor's exemption claim in the form specified in
5.16subdivision 3a, on the same day that it obtains the hearing date. The hearing date obtained
5.17by the judgment creditor must be no earlier than five business days and no later than ten
5.18business days from the date the judgment creditor requests and obtains the hearing date.
5.19An order stating whether the judgment debtor's funds are exempt must be issued by the
5.20court within three days of the date of the hearing.

5.21    Sec. 3. Minnesota Statutes 2008, section 551.05, is amended by adding a subdivision
5.22to read:
5.23    Subd. 3a. Notice of hearing on judgment creditor's objection to judgment
5.24debtor's exemption claim. The judgment creditor's notice of hearing on its objection to
5.25the judgment debtor's exemption claim must be in substantially the following form:

5.26	STATE OF MINNESOTA				DISTRICT COURT
5.27	County of .....				..... JUDICIAL DISTRICT
5.28	.....	(Judgment Creditor)				NOTICE OF
5.29	.....	(Judgment Debtor)				HEARING ON
5.30 5.31 5.32	.....	(Garnishee) (Third Party)			JUDGMENT CREDITOR'S OBJECTION TO JUDGMENT DEBTOR'S EXEMPTION CLAIM

5.33The judgment creditor objects to your claim for exemption from garnishment, levy of
5.34execution, order for attachment (strike inapplicable language) for the following reason(s):

6.1	.....
6.2	.....
6.3	.....

6.4A hearing will be held in this case on (Date) at (Time) at (Place) to resolve whether
6.5your funds at (Financial Institution) are exempt. You have claimed that such funds are
6.6exempt because
..... ..... 6.7
..... 6.8
..... 6.9
6.10At the hearing, you will have to prove that your funds are exempt. If you do not
6.11attend the hearing, the judge may order that your funds be released to the judgment
6.12creditor. The judge will issue an order within three days of the hearing regarding whether
6.13your funds are exempt.
6.14Because the judgment creditor objected to your exemption claim, your financial
6.15institution will retain the funds you claim to be exempt until it receives: (1) a written
6.16release from either the judgment creditor or you; or (2) an order from the court regarding
6.17whether your funds are exempt.

6.18	Dated: .....
6.19		.....
6.20		Judgment Creditor or Creditor's Attorney
6.21		.....
6.22		..... Address

6.23(Note to both parties: Bring with you to the hearing all documents and materials relevant
6.24to the exemption claim and objection. Failure to do so could delay the court's decision.)

6.25    Sec. 4. Minnesota Statutes 2008, section 551.05, subdivision 4, is amended to read:
6.26    Subd. 4. Duties of financial institution if objection is made to exemption claim.
6.27Upon receipt of a written objection from the judgment creditor within the specified
6.28seven-day period, the financial institution shall retain the funds claimed to be exempt.
6.29Unless the financial institution receives a request for hearing and notice of hearing from
6.30the judgment debtor asserting exemption rights within ten days after receipt of a written
6.31objection to the exemption, The funds remain subject to the execution levy as if no claim
6.32of exemption had been made and shall be remitted to the judgment creditor's attorney
6.33within seven days. If a request for hearing and notice of hearing to determine the validity
6.34of a claim of exemption is received by the financial institution within the period provided,
6.35it shall retain the funds claimed to be exempt until otherwise ordered by the court. The
7.1financial institution shall retain the funds claimed to be exempt until it receives: (1) a
7.2written release from either the judgment creditor or judgment debtor; or (2) an order
7.3stating whether the funds are exempt.

7.4    Sec. 5. Minnesota Statutes 2008, section 571.71, is amended to read:
7.5571.71 GARNISHMENT; WHEN AUTHORIZED.
7.6As an ancillary proceeding to a civil action for the recovery of money, a creditor
7.7may issue a garnishment summons as provided in this chapter against any third party in
7.8the following instances:
7.9(1) at the time the civil action is commenced or at any time after the commencement
7.10of the civil action, but before the entry of a judgment, if the court orders the issuance of
7.11the garnishment summons pursuant to section 571.93; or
7.12(2) at any time 40 days or more after service of the summons and complaint upon
7.13the debtor in the civil action when a judgment by default could have, but has not, been
7.14entered pursuant to rule 55.01(a) of the Minnesota Rules of Civil Procedure for the District
7.15Courts. No filing of a pleading or other documents by the creditor is required to issue a
7.16garnishment summons under this clause; however, the creditor must comply with the
7.17service requirement of section 571.72, subdivision 4; or
7.18(3) (2) at any time after entry of a money judgment in the civil action.

7.19    Sec. 6. Minnesota Statutes 2008, section 571.72, subdivision 4, is amended to read:
7.20    Subd. 4. Service of garnishment summons on debtor. A copy of the garnishment
7.21summons and copies of all other papers served on the garnishee must be served by mail at
7.22the last known mailing address of the debtor not later than five days after the service is
7.23made upon the garnishee. The first time a garnishment summons is served on the debtor
7.24pursuant to section 571.71, clause (2), the creditor shall also serve a copy of the affidavit
7.25of service of the original summons and complaint. Service of the garnishment documents
7.26on the debtor is effective upon mailing.

7.27    Sec. 7. Minnesota Statutes 2008, section 571.79, is amended to read:
7.28571.79 DISCHARGE OF A GARNISHEE.
7.29Except as provided in paragraph (h) (g), the garnishee, after disclosure, shall be
7.30discharged of any further retention obligation to the creditor with respect to a specific
7.31garnishment summons when one of the following conditions are met:
7.32(a) The garnishee discloses that the garnishee is not indebted to the debtor or does
7.33not possess any money or other property belonging to the debtor that is attachable as
8.1defined in section 571.73, subdivision 3. The disclosure is conclusive against the creditor
8.2and discharges the garnishee from any further obligation to the creditor other than to retain
8.3all nonexempt disposable earnings, indebtedness, money, and property of the debtor
8.4which was disclosed.
8.5(b) The garnishee discloses that the garnishee is indebted to the debtor as indicated
8.6on the garnishment disclosure form. The disclosure is conclusive against the creditor and
8.7discharges the garnishee from any further obligation to the creditor other than to retain
8.8all nonexempt disposable earnings, indebtedness, money, and property of the debtor
8.9that was disclosed.
8.10(c) If the garnishee was served with a garnishment summons before entry of
8.11judgment against the debtor by the creditor in the civil action and the garnishee has
8.12retained any disposable earnings, indebtedness, money, or property of the debtor, 270 days
8.13after the garnishment summons is served the garnishee is discharged and the garnishee
8.14shall return any disposable earnings, indebtedness, money, and property to the debtor.
8.15(d) (c) If the garnishee was served with a garnishment summons after entry of
8.16judgment against the debtor by the creditor in the civil action and the garnishee has
8.17retained any disposable earnings, indebtedness, money, or property of the debtor, 180 days
8.18after the garnishment summons is served the garnishee is discharged and the garnishee
8.19shall return any disposable earnings, other indebtedness, money, and property to the debtor.
8.20(e) (d) If the garnished indebtedness, money, or other property is destroyed without
8.21any negligence of the garnishee, the garnishee is discharged of any liability to the creditor
8.22for nondelivery of the garnished indebtedness, money, and other property.
8.23(f) (e) The court may, upon motion of an interested person, discharge the garnishee
8.24as to any disposable earnings, other indebtedness, money, and property in excess of the
8.25amount that may be required to satisfy the creditor's claim.
8.26(g) (f) The discharge of the garnishee pursuant to paragraph (a), (b), or (c), or (d)
8.27is not determinative of the rights of the creditor, debtor, or garnishee with respect to any
8.28other garnishment summons, even another garnishment summons involving the same
8.29parties, unless and to the extent adjudicated pursuant to the procedures described in
8.30paragraph (h) (g).
8.31(h) (g) The garnishee is not discharged if within 20 days of the service of the
8.32garnishee's disclosure or the return to the debtor of any disposable earnings, indebtedness
8.33money, or other property of the debtor, whichever is later, an interested person (1) serves
8.34a motion scheduled to be heard within 30 days of the service of the motion relating
8.35to the garnishment, or (2) serves a motion scheduled to be heard within 30 days of the
8.36service of the motion for leave to file a supplemental complaint against the garnishee, as
9.1provided under section 571.75, subdivision 4, and the court upon proper showing vacates
9.2the discharge of the garnishee.

9.3    Sec. 8. Minnesota Statutes 2008, section 571.912, is amended to read:
9.4571.912 FORM OF EXEMPTION NOTICE.
9.5The notice informing a debtor that an order for attachment, garnishment summons,
9.6or levy by execution has been used to attach funds of the debtor to satisfy a claim must be
9.7substantially in the following form:

9.8	STATE OF MINNESOTA		DISTRICT COURT
9.9	COUNTY OF .....		..... JUDICIAL DISTRICT
9.10	..... (Creditor)
9.11	..... (Debtor)
9.12	TO: Debtor		EXEMPTION NOTICE

9.13An order for attachment, garnishment summons, or levy of execution (strike
9.14inapplicable language) has been served on ............ (bank or other financial institution)
9.15............... where you have an account.
9.16Your account balance is $..................
9.17The amount being held is $.................
9.18However, all or a portion of the funds in your account will normally be exempt from
9.19creditors' claims if they are in one of the following categories:
9.20(1) relief based on need. This includes the Minnesota Family Investment Program
9.21(MFIP), Emergency Assistance (EA), Work First Program, Medical Assistance (MA),
9.22General Assistance (GA), General Assistance Medical Care (GAMC), Emergency General
9.23Assistance (EGA), Minnesota Supplemental Aid (MSA), MSA Emergency Assistance
9.24(MSA-EA), Supplemental Security Income (SSI), and Energy Assistance;
9.25(2) Social Security benefits (Old Age, Survivors, or Disability Insurance);
9.26(3) unemployment benefits, workers' compensation, or veterans' benefits;
9.27(4) an accident, disability, or retirement pension or annuity;
9.28(5) life insurance proceeds;
9.29(6) the earnings of your minor child and any child support paid to you; or
9.30(7) money from a claim for damage or destruction of exempt property (such as
9.31household goods, farm tools, business equipment, a mobile home, or a car).
9.32The following funds are also exempt:
9.33(8) all earnings of a person in category (1);
9.34(9) all earnings of a person who has received relief based on need, or who has been
9.35an inmate of a correctional institution, within the last six months;
10.1(10) 75 percent of every debtor's after tax earnings; and
10.2(11) all of a debtor's after tax earnings below 40 times the federal minimum wage.
10.3TIME LIMIT ON EXEMPTIONS AFTER DEPOSIT IN BANK:
10.4Categories (10) and (11): 20 days
10.5Categories (8) and (9): 60 days
10.6All others: no time limit, as long as funds are traceable to the exempt source. (In
10.7tracing funds, the first-in, first-out method is used. This means money deposited first is
10.8spent first.) The money being sought by the creditor is being held in your account to
10.9give you a chance to claim an exemption.
10.10TO CLAIM AN EXEMPTION:
10.11Fill out, sign, and mail or deliver one copy of the attached exemption claim form to
10.12the institution which sent you this notice and mail or deliver one copy to the creditor's
10.13attorney. In the event that there is no attorney for the creditor, then such notice shall be
10.14sent directly to the creditor. The address for the creditor's attorney or the creditor is set
10.15forth below. Both copies must be mailed or delivered on the same day.
10.16NOTE: You may help resolve your claim faster if you send to the creditor's
10.17attorney written proof or documents that show why your money is exempt. If
10.18you have questions regarding the documents to send as proof of an exemption,
10.19call the creditor's attorney. If you do not send written proof and the creditor's
10.20attorney has questions about your exemption claim, the creditor's attorney
10.21may object to your claim which may result in a further delay in releasing your
10.22exempt funds.
10.23If they do not get the exemption claim back from you within 14 days of the date
10.24they mailed or gave it to you, they will be free to turn the money over to the sheriff or
10.25the creditor. If you are going to claim an exemption, do so as soon as possible, because
10.26your money may be held until it is decided.
10.27IF YOU CLAIM AN EXEMPTION:
10.28(1) nonexempt money can be turned over to the creditor or sheriff;
10.29(2) the financial institution will keep holding the money claimed to be exempt; and
10.30(3) seven days after receiving your exemption claim, the financial institution will
10.31release the money to you unless before then it receives an objection to your exemption
10.32claim.
10.33IF THE CREDITOR OBJECTS TO YOUR EXEMPTION CLAIM:
10.34The institution will hold the money until a court decides if your exemption claim is
10.35valid, BUT ONLY IF the institution gets a copy of your court motion papers asserting
10.36the exemption WITHIN TEN DAYS after the objection is personally served on you, or
11.1within 13 days from the date the objection is mailed to you. You may wish to consult an
11.2attorney at once if the creditor objects to your exemption claim.
11.3MOTION TO DETERMINE EXEMPTION:
11.4At any time after your funds have been held, you may ask for a court decision on the
11.5validity of your exemption claim by filing a request for hearing which may be obtained
11.6at the office of the court administrator of the above court.
11.7PENALTIES:
11.8If you claim an exemption in bad faith, or if the creditor wrongly objects to an
11.9exemption in bad faith, the court may order the person who acted in bad faith to pay costs,
11.10actual damages, attorney fees, and an additional amount of up to $100.

11.11		.....
11.12		.....
11.13		.....
11.14		.....
11.15 11.16		Name and address of (Attorney for) Judgment Creditor

11.17EXEMPTION:
11.18(If you claim an exemption complete the following):
11.19(a) Amount of exemption claim.
11.20/ / I claim ALL the funds being held are exempt.
11.21/ / I claim SOME of the funds being held are exempt.

11.22

The exempt amount is $............

11.23(b) Basis for exemption.
11.24Of the eleven categories listed above, I am in category number ............ (If more
11.25than one category applies, you may fill in as many as apply.) The source of the exempt
11.26funds is the following:

11.27	.....
11.28	.....
11.29	.....

11.30(If the source is a type of relief based on need, list the case number and county:
11.31case number: ...............;
11.32county: ....................)
11.33I hereby authorize any agency that has distributed relief to me or any correctional
11.34institution in which I was an inmate to disclose to the above named creditor or its attorney
11.35only whether or not I am or have been a recipient of relief based on need or an inmate of a
11.36correctional institute within the last six months.
12.1I have mailed or delivered a copy of the exemption notice to the creditor's attorney
12.2at the address indicated above.

12.3 12.4	DATED: .....		..... DEBTOR
12.5 12.6			..... DEBTOR ADDRESS
12.7 12.8			..... DEBTOR TELEPHONE NUMBER

12.9    Sec. 9. Minnesota Statutes 2008, section 571.914, subdivision 1, is amended to read:
12.10    Subdivision 1. Objections. An objection shall be interposed by mailing or
12.11delivering one copy of the written objection to the financial institution and one copy of the
12.12written objection to the debtor. A Request for Hearing and Notice of Hearing form must
12.13accompany each copy of the written objection.
12.14Both copies of an objection to an exemption claim must be mailed or delivered on
12.15the same date. The financial institution may rely on the date of mailing or delivery of a
12.16notice to it in computing any time periods in this section.
12.17The written objection, and Request for Hearing and Notice of Hearing, must be
12.18substantially in the forms set out in subdivisions 2 and 3.
12.19The court shall provide clerical assistance to help with the writing and filing of a
12.20Request for Hearing by any person not represented by counsel. The court administrator
12.21may charge a fee of $1 for the filing of a Request for Hearing. Upon the filing of a Request
12.22for Hearing, the court administrator shall schedule the matter for hearing no later than five
12.23business days from the date of filing. The court administrator shall immediately send a
12.24completed copy of the request, including the hearing date, time, and place to the adverse
12.25party and to the financial institution by first class mail.
12.26An order stating whether the debtor's funds are exempt shall be issued by the court
12.27within three days of the date of the hearing.
12.28If a creditor objects to a debtor's exemption claim, the creditor shall obtain from
12.29the court administrator or a designated motion calendar deputy a date and time for an
12.30evidentiary hearing on its objection. The creditor shall serve on the debtor and garnishee,
12.31personally or by first class mail, a notice of hearing on creditor's objection to debtor's
12.32exemption claim in the form specified in subdivision 2, on the same day that it obtains
12.33the hearing date. The hearing date obtained by the creditor must be no earlier than five
12.34business days and no later than ten business days from the date the creditor requests and
12.35obtains the hearing date. An order stating whether the debtor's funds are exempt must be
12.36issued by the court within three days of the date of the hearing.

13.1    Sec. 10. Minnesota Statutes 2008, section 571.914, subdivision 2, is amended to read:
13.2    Subd. 2. Notice of hearing on creditor's objection to debtor's exemption claim.
13.3(a) The written objection to the debtor must be in substantially the following form:

13.4	STATE OF MINNESOTA		DISTRICT COURT
13.5	COUNTY OF .....		..... JUDICIAL DISTRICT
13.6	..... (Creditor)
13.7	..... (Debtor)		CREDITOR'S OBJECTION
13.8	..... (Garnishee)		TO EXEMPTION CLAIM

13.9The creditor objects to your claim for exemption from garnishment, levy of
13.10execution, order for attachment (strike inapplicable language) for the following reason(s):

13.11	.....
13.12	.....
13.13	.....

13.14Because of this objection, your financial institution will retain the funds you claimed
13.15to be exempt for an additional ten days. If you wish to request a hearing on your exemption
13.16claim, you need to do so within ten days from the date the objection was personally served
13.17on you, or within 13 days of the date the objection was mailed to you. You may request a
13.18hearing by completing the attached form and filing it with the court administrator.
13.191. The court shall provide clerical assistance to help with the writing and filing of a
13.20Request for Hearing by any person not represented by counsel. The court administrator
13.21may charge a fee of $1 for the filing of a Request for Hearing.
13.222. Upon the filing of a Request for Hearing, the clerk shall schedule the matter for a
13.23hearing no later than five business days from the date of filing. The court administrator
13.24shall forthwith send a completed copy of the request, including the hearing date, time, and
13.25place to the adverse party and to the financial institution by first class mail.
13.263. If it is possible that the financial institution might not receive the request mailed
13.27from the court administrator within ten days, then you may want to personally deliver a
13.28copy of the request to the financial institution after you have filed your request with the
13.29court.
13.304. An order stating whether your funds are exempt shall be issued by the court
13.31within three days of the date of the hearing.
13.32If you do not file a Request for Hearing within ten days of the date the objection was
13.33personally served on you, or within 13 days from the date the objection was mailed to you,
13.34your financial institution may turn your funds over to your creditor.
13.35If you file a Request for Hearing and your financial institution receives it within ten
13.36days of the date it received this objection, your financial institution will retain your funds
14.1claimed to be exempt until otherwise ordered by the court, or until the garnishment lapses
14.2pursuant to Minnesota Statutes, section 571.79.

14.3		.....
14.4		(CREDITOR OR CREDITOR'S ATTORNEY.)

14.5The creditor's notice of hearing on its objection to the debtor's exemption claim
14.6must be in substantially the following form:

14.7	STATE OF MINNESOTA				DISTRICT COURT
14.8	COUNTY OF .....				..... JUDICIAL DISTRICT
14.9	.....	(Creditor)				NOTICE OF
14.10	.....	(Debtor)				HEARING ON
14.11 14.12	.....	(Garnishee) (Third Party)			CREDITOR'S OBJECTION TO DEBTOR'S EXEMPTION CLAIM

14.13The creditor objects to your claim for exemption from garnishment, levy of
14.14execution, order for attachment (strike inapplicable language) for the following reason(s):

14.15	.....
14.16	.....
14.17	.....

14.18A hearing will be held in this case on (Date) at (Time) at (Place) to resolve whether
14.19your funds at (Financial Institution) are exempt. You have claimed that such funds are
14.20exempt because
.....

14.21	.....
14.22	.....

14.23At the hearing, you will have to prove that your funds are exempt. If you do not
14.24attend the hearing, the judge may order that your funds be released to the judgment
14.25creditor. The judge will issue an order within three days of the hearing regarding whether
14.26your funds are exempt.
14.27Because the creditor objected to your exemption claim, your financial institution will
14.28retain the funds you claim to be exempt until it receives: (1) a written release from either
14.29the creditor or you; or (2) an order from the court regarding whether your funds are exempt.

14.30	Dated: .....
14.31		.....
14.32		Judgment Creditor or Creditor's Attorney
14.33		.....
14.34		..... Address

14.35(Note to both parties: Bring with you to the hearing all documents and materials relevant
14.36to the exemption claim and objection. Failure to do so could delay the court's decision.)

15.1    Sec. 11. Minnesota Statutes 2008, section 571.914, subdivision 4, is amended to read:
15.2    Subd. 4. Duties of financial institution if objection is made to exemption claim.
15.3Upon receipt of a written objection from the creditor within the specified seven-day
15.4period, the financial institution shall retain the funds claimed to be exempt. Unless the
15.5financial institution receives a request for hearing from the debtor asserting exemption
15.6rights within ten days after receipt of the written objection to the exemption, The funds
15.7remain subject to the garnishment summons as if no claim of exemption had been made.
15.8If a notice of motion and motion to determine the validity of a claim of exemption is
15.9received by the financial institution within the period provided, the financial institution
15.10shall retain the funds claimed to be exempt until otherwise ordered by the court, or until
15.11the garnishment lapses pursuant to section 571.79. The financial institution shall retain the
15.12funds claimed to be exempt until it receives: (1) a written release from either the creditor
15.13or debtor; or (2) an order stating whether the funds are exempt.

15.14    Sec. 12. Minnesota Statutes 2008, section 571.93, subdivision 1, is amended to read:
15.15    Subdivision 1. Grounds. The court may order the issuance of a garnishment
15.16summons before judgment or default in the civil action, if a summons and complaint, or
15.17copies of these documents, are filed with the appropriate court, and if, upon application to
15.18the court, it appears that any of the following grounds exist:
15.19(1) the debtor has assigned, secreted, or disposed of, or is about to assign, secrete,
15.20or dispose of, any of the debtor's nonexempt property, with intent to delay or defraud
15.21any of debtor's creditors;
15.22(2) the debtor has removed, or is about to remove, any of the debtor's nonexempt
15.23property from this state, with intent to delay or defraud any of debtor's creditors;
15.24(3) the debtor has converted or is about to convert any of the debtor's nonexempt
15.25property into money or credits, for the purpose of placing the property beyond the reach of
15.26any of debtor's creditors;
15.27(4) the debtor has committed an intentional fraud giving rise to the claim upon
15.28which the civil action is brought;
15.29(5) the debtor has committed any act or omission, for which the debtor has been
15.30convicted of a felony, giving rise to the claim upon which the civil action is brought; or
15.31(6) the purpose of the garnishment is to establish quasi in rem jurisdiction and
15.32(i) debtor is a resident individual having left the state with intent to defraud creditors,
15.33or to avoid service; or
15.34(ii) a judgment had previously been obtained in another state consistent with due
15.35process; or
16.1(iii) the claim in the civil action is directly related to and arises from the property
16.2sought to be attached; or
16.3(iv) no forum is available to obtain a personal judgment against the debtor in the
16.4United States or elsewhere; or
16.5(7) the creditor has been unable to serve upon the debtor the summons and
16.6complaint in the civil action because the debtor has been inaccessible due to residence
16.7and employment in a building where access is restricted.

16.8    Sec. 13. REPEALER.
16.9Minnesota Statutes 2008, sections 551.05, subdivisions 5 and 6; and 571.914,
16.10subdivision 3, are repealed.