Payment Of Judgment Debt In Minnesota
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Under Minnesota law, a lawsuit based on an unpaid debt expires if it is not started within six years of when the account was last used or the last payment on the debt, whichever is later.
Generally, you should start by offering 20% to 30% of the debt as a lump-sum payment (assuming you can afford this amount). This low starting point gives you room to negotiate while showing you're serious about resolving the debt. Be realistic and base your offer on what you can afford.
Subdivision 1. 63. The judgment survives, and the lien continues, for ten years after its entry. Child support judgments may be renewed pursuant to section 548.091.
The proper procedure to get relief from a judgment (appeals or other post-trial motions aside) is to file a motion to vacate judgment pursuant to Rule 60.02 of the Minnesota Rules of Civil Procedure. Rule 60 provides several grounds to file a motion to vacate judgment but we will focus on Rule 60.02.
The judgment creditor may file a certified copy of that court order, anAffidavit of Identification of Judgment Debtor, and an Affidavit of Identification of Judgment Creditorwith a Minnesota court. This will direct the Minnesota court to enter the foreign judgment, and then “docket” it if there are no objections.
Garnishing Your Wages If you do not object within ten days, your wages can be garnished. If you are eligible for and wish to claim an “exemption” from garnishment, it is important that you complete and return the necessary paperwork, which can be submitted anytime during the garnishment.
How much of your wages can be garnished? Creditors generally cannot garnish more than 25 percent of your “disposable wages." “Disposable” wages are the earnings that remain after deducting all withholdings required by law, or any of your disposable wages if you make less than $380 per week.
Creditors can potentially garnish wages after 7 years, depending on the type of debt and state laws. The “7-Year Rule” often causes confusion, but it doesn't universally apply to all debts. Federal debts like student loans and taxes can be collected beyond 7 years, while state laws vary on judgment enforcement periods.
