How Much Can Be Garnished From Wages in Minnesota?

Wage garnishment occurs when a creditor obtains a court order to withhold pay from a debtor's paycheck to pay the debt. The Consumer Credit Protection Act is a federal law that governs how much can be withheld. States are not allowed to enact laws that result in less protection for consumers than the federal law. Like most states, Minnesota allows wage garnishment, but has laws that regulate and limit how much can be withheld.

Court Order

• Creditors cannot simply arrange for money to be withheld from a debtor's paycheck just because the debtor owes money. Before creditors can garnish wages, they must generally obtain a judgment against the debtor by filing a lawsuit in court. If a creditor files a lawsuit and a debtor fails to respond to the lawsuit, it is likely the creditor will obtain a default judgment against the debtor. In that case, the debtor's wages may be garnished.

Protected Pay

• For most debts, Minnesota law states that creditors must allow the debtor to keep 75 percent of his disposable earnings from each paycheck or 40 times the minimum wage, whichever is greater. Although some states follow the federal guidelines for garnishment limitations, Minnesota law is more favorable to debtors than the federal law, which sets the standard at 30 times the minimum wage.

  Disposable earnings are calculated by taking gross pay and deducting taxes and any other amounts the debtor is legally required to pay. Money deducted for health insurance, retirement plans or other optional deductions do not reduce the amount of disposable earnings.

Child Support

• If a debtor has a judgment against him for child support, the garnishment limitations are higher. In Minnesota, a child support creditor may withhold as much as 50 to 65 percent of a debtor's disposable income, depending on whether the debtor is supporting a spouse or other children and the age of the judgment itself.

Protections

• Debtors in Minnesota may have protection from wage garnishment in some circumstances. If a debtor was released from prison or has received public assistance within the past six months, Minnesota law does not allow garnishment of the debtor's wages. After a debtor has received a notice that her wages are to be garnished, it is up to her to notify the creditor that she is protected from garnishment for either of those reasons.

Violations

• If a creditor wrongfully garnishes a debtor's wages before receiving a judgment, the debtor may be entitled to compensation of his actual losses, reasonable attorney's fees and $100.