Garnishment Exemption
Legal protections that limit how much of your wages or bank account money can be taken to pay a debt.
When you owe a debt and a creditor wins a court judgment against you, they may try to collect by garnishing your wages or bank account. Garnishment means the creditor gets a court order directing your employer or bank to send part of your money directly to the creditor. Garnishment exemptions are rules that limit how much can be taken, so you still have enough to live on.
Both federal and Minnesota law set limits on wage garnishment. Generally, a creditor can take no more than 25% of your disposable earnings (your pay after required deductions like taxes). There is also a floor: if 25% of your pay would leave you with less than 40 times the federal minimum wage per week, the amount taken is reduced. The lower of these two calculations is the most that can be garnished.
Certain types of income are fully protected from garnishment in Minnesota. Social Security benefits, public assistance payments, workers’ compensation, and unemployment insurance cannot be garnished by most creditors. However, these exemptions are not automatic. You must file a claim of exemption with the court to protect your money. If you do not respond to a garnishment notice, the full amount may be taken.
Why it matters: If you receive a garnishment notice, acting quickly is essential. You have the right to keep enough money to cover basic needs, and some types of income cannot be touched at all. But you must speak up and claim your exemptions, or you could lose money you are entitled to keep.
Example: David works at a warehouse in Brooklyn Park and earns $800 per week after taxes. A creditor wins a judgment and starts garnishing his wages. Under the law, the creditor can take no more than $200 per week (25% of his disposable earnings). David also receives $1,400 per month in Social Security disability benefits deposited into his bank account. When the creditor tries to garnish his bank account, David files a claim of exemption with the court, showing the money came from Social Security. The court protects those funds from garnishment.
When a creditor gets a court order to take money from your paycheck or bank account