Wage garnishment can be one of the most stressful financial experiences you’ll face. When a portion of your paycheck is automatically deducted before you even receive it, it can make meeting basic living expenses feel impossible. If you’re facing wage garnishment in Minneapolis, understanding your rights and options is the first step toward regaining financial stability.
What is Wage Garnishment?
Wage garnishment is a legal process where a court orders your employer to withhold a specific portion of your earnings to pay off a debt. This money is taken directly from your paycheck before you receive it and sent to your creditor. In Minnesota, wage garnishment is governed by both federal and state laws, with Minnesota providing some of the strongest protections for workers in the nation.
Common Reasons for Wage Garnishment in Minneapolis
Several types of debts can lead to wage garnishment:
Consumer Debt Garnishments
Credit card companies, medical providers, and other creditors can obtain court judgments to garnish your wages after winning a lawsuit against you.
Student Loan Garnishments
Federal student loans can be garnished without a court judgment through administrative wage garnishment, though there are limits to how much can be taken.
Tax Debt
The IRS and Minnesota Department of Revenue have broad powers to garnish wages for unpaid taxes, often without going through the standard court process.
Child Support and Alimony
Court-ordered family support obligations are among the most common reasons for wage garnishment and often take priority over other debts.
Court-Ordered Restitution
If you’ve been ordered to pay restitution as part of a criminal case, your wages may be garnished to satisfy this obligation.
How Much of Your Wages Can Be Garnished in Minnesota?
Minnesota law provides stronger protections than federal law when it comes to wage garnishment limits. Under Minnesota Statutes Section 571.922, the maximum amount that can be garnished from your paycheck is generally the lesser of:
- 25% of your disposable earnings, or
- The amount by which your disposable earnings exceed 40 times the federal minimum wage per week
Disposable earnings are defined as your gross wages minus mandatory deductions like taxes, Social Security, and Medicare. Voluntary deductions such as retirement contributions or health insurance premiums are not subtracted when calculating disposable earnings.
Special Garnishment Limits
Certain types of debts have different garnishment limits:
Child Support and Alimony
Up to 50% of disposable earnings can be garnished if you’re supporting another spouse or child, or up to 60% if you’re not. An additional 5% can be added if you’re more than 12 weeks behind in payments.
Student Loans
Federal student loan garnishments are limited to 15% of disposable income, which often results in a lower garnishment amount than other consumer debts.
Tax Debts
The IRS uses a different formula based on your filing status, number of dependents, and standard deduction amounts, which can sometimes result in higher garnishment amounts.
Minnesota’s Wage Exemption Laws
Minnesota provides several exemptions that may reduce or eliminate wage garnishment. Understanding these exemptions is crucial to protecting your income.
Income Below Poverty Level
If your household income falls below the federal poverty guidelines, your wages may be completely exempt from garnishment for consumer debts. For 2025, the federal poverty level for a single person is approximately $15,060 annually. For a family of four, it’s approximately $31,200.
These amounts are updated annually and can provide complete protection from wage garnishment.
Head of Household Exemption
Minnesota law provides additional protection if you qualify as head of household. To claim this exemption, you must provide more than 50% of the support for a dependent child or other qualifying relative.
This exemption can significantly increase the amount of wages protected from garnishment.
Public Benefits Protection
Certain types of income are completely exempt from garnishment under Minnesota law, including:
- Social Security benefits
- Supplemental Security Income (SSI)
- Veterans benefits
- Workers’ compensation
- Unemployment benefits
- Public assistance (welfare)
- Disability benefits
- Railroad retirement benefits
If these funds are deposited directly into your bank account, they generally maintain their exempt status, though mixing them with non-exempt funds can complicate matters.
The Wage Garnishment Process in Minneapolis
Understanding the garnishment process helps you identify opportunities to protect your rights and stop the garnishment before it starts or while it’s in effect.
Step 1: Lawsuit and Judgment
For most consumer debts, creditors must first sue you and obtain a judgment before they can garnish your wages. You’ll receive a summons and complaint notifying you of the lawsuit. Responding to this lawsuit is critical. Many people make the mistake of ignoring court papers, which typically results in a default judgment against them.
Step 2: Earnings Disclosure
After obtaining a judgment, the creditor can request an earnings disclosure from you, requiring you to provide information about your employment and income. You must respond truthfully to this disclosure within 10 days.
Step 3: Garnishment Order
The creditor then serves a garnishment summons on your employer. Your employer is legally required to withhold the specified amount from your paycheck and send it to the creditor. Your employer must also notify you of the garnishment.
Step 4: Your Right to Object
You have 20 days from when the garnishment summons is served to file an exemption claim if you believe your wages should be protected. This is a critical window of opportunity that should not be missed.
Eight Proven Ways to Stop Wage Garnishment in Minneapolis
If you’re facing wage garnishment, you have several options to stop or reduce it. The best strategy depends on your specific financial situation and the type of debt involved.
1. File an Exemption Claim
If your income is below the poverty level or you qualify as head of household, filing an exemption claim can stop the garnishment entirely. You must file this claim within 20 days of receiving notice of the garnishment. The court will schedule a hearing where you can present evidence of your exempt status.
To successfully file an exemption claim, you’ll need to provide documentation such as pay stubs, tax returns, proof of dependents, and evidence of your living expenses. An experienced bankruptcy attorney can help you prepare a strong exemption claim and represent you at the hearing.
2. Negotiate a Payment Plan
Sometimes creditors are willing to release a wage garnishment if you agree to a voluntary payment plan. This approach works best if you can demonstrate the garnishment is causing severe financial hardship and propose a reasonable alternative payment arrangement.
A payment plan typically involves making monthly payments directly to the creditor rather than through wage garnishment. This gives you more control over your finances and may allow you to negotiate a reduced total payment amount or extended payment terms.
3. Challenge the Underlying Debt
If you believe the debt is not valid, has been paid, or the amount is incorrect, you can challenge the garnishment in court.
Common Grounds for Challenging a Debt
- The debt is beyond the statute of limitations
- You’re a victim of identity theft
- The creditor cannot prove you owe the debt
- The amount claimed is incorrect
- You already paid the debt
Challenging a debt requires presenting evidence in court, so having legal representation is highly advisable.
4. File for Bankruptcy
Filing for bankruptcy immediately stops all wage garnishments through an automatic stay. This legal protection goes into effect the moment your bankruptcy petition is filed and prohibits creditors from continuing collection activities, including wage garnishment.
Chapter 7 Bankruptcy: Often called liquidation bankruptcy, Chapter 7 can eliminate most unsecured debts like credit cards and medical bills within 3-4 months. Once these debts are discharged, the wage garnishment ends permanently because the underlying debt no longer exists.
Chapter 13 Bankruptcy: This reorganization bankruptcy allows you to repay debts through a 3-5 year payment plan based on your income and expenses. The wage garnishment stops immediately, and you make affordable monthly payments to the bankruptcy trustee instead. Chapter 13 is particularly useful if you’re behind on secured debts like your mortgage or car loan.
Bankruptcy doesn’t stop all wage garnishments. Child support, alimony, most tax debts, and student loans generally cannot be discharged in bankruptcy, though Chapter 13 can help you manage these debts through a payment plan.
5. Pay Off the Debt
If financially possible, paying off the debt in full immediately stops the garnishment. You might consider borrowing from family, using savings, or selling assets to eliminate the debt. While this isn’t an option for everyone, it’s the quickest way to end a garnishment if you have access to funds.
Some creditors may accept a lump-sum settlement for less than the full amount owed, particularly if the debt is old or they believe collection will be difficult.
6. Request a Hearing
Minnesota law allows you to request a hearing to review the garnishment. At this hearing, you can present evidence that the garnishment amount is incorrect, that you qualify for exemptions, or that the garnishment is causing undue hardship.
The court has discretion to reduce or temporarily suspend the garnishment if you can demonstrate that it prevents you from meeting basic living expenses.
7. Contest the Judgment
If a judgment was entered against you by default because you didn’t respond to the lawsuit, you may be able to ask the court to set aside the judgment. You must show good cause for not responding and present a meritorious defense to the underlying debt claim.
This option has strict time limits, typically within one year of the judgment, and requires convincing the court that you have a valid reason for not responding initially.
8. Wait for the Statute of Limitations on Enforcement
Judgments in Minnesota are generally enforceable for 10 years and can be renewed for an additional 10 years. While waiting isn’t a practical solution for most people, understanding that judgments don’t last forever can provide some perspective on your options.
How Bankruptcy Stops Wage Garnishment
Bankruptcy is often the most effective solution for stopping wage garnishment, particularly when you’re facing multiple debts or the garnishment is making it impossible to meet basic living expenses.
The Automatic Stay
When you file for bankruptcy, federal law immediately imposes an automatic stay that prohibits creditors from continuing collection activities. This includes wage garnishment, creditor calls, lawsuits, and foreclosure proceedings. The automatic stay goes into effect the moment your bankruptcy petition is filed with the court.
Chapter 7 vs. Chapter 13 for Wage Garnishment
Chapter 7 Benefits:
- Quick process, typically 3-4 months
- Eliminates most unsecured debts permanently
- No ongoing payment plan required
- Stops wage garnishment immediately
Chapter 13 Benefits:
- Stops garnishment immediately
- Allows you to catch up on secured debts like mortgages
- Can reduce some secured debts to the value of the collateral
- Protects co-signers from collection
- May allow you to keep more property
- Provides a structured way to pay priority debts like taxes
Which Debts Cannot Be Stopped Through Bankruptcy?
While bankruptcy is powerful, certain obligations continue even after filing:
- Child support and alimony (current and past due)
- Most tax debts less than three years old
- Student loans (except in cases of undue hardship, which is difficult to prove)
- Debts incurred through fraud or willful misconduct
- Court-ordered restitution in criminal cases
However, Chapter 13 bankruptcy can help you manage these non-dischargeable debts through an affordable payment plan while stopping wage garnishment for other debts.
Protecting Your Rights During Wage Garnishment
Even while facing wage garnishment, you have important legal rights that creditors and employers must respect.
Your Employer Cannot Fire You
Federal law prohibits employers from firing you because your wages are being garnished for a single debt. Minnesota law provides even stronger protection, making it illegal for employers to terminate employees due to wage garnishment for any number of debts.
If you’re fired because of wage garnishment, you may have grounds for a wrongful termination lawsuit. Document all communications with your employer regarding the garnishment.
Limits on Garnishment Amounts
As discussed earlier, Minnesota law strictly limits how much can be garnished from your paycheck. If your employer is withholding more than the legal limit, you have the right to challenge this in court.
Proper Notice Requirements
You must receive proper notice before wage garnishment begins. This includes notice of the underlying lawsuit, notice of the judgment, and notice of the garnishment itself. If proper notice wasn’t provided, you may have grounds to challenge the garnishment.
Right to Claim Exemptions
You always have the right to claim exemptions within 20 days of receiving garnishment notice. Don’t let this deadline pass, as it may be your best opportunity to stop or reduce the garnishment.
Common Mistakes to Avoid
When facing wage garnishment, certain mistakes can make your situation worse:
Ignoring Court Papers: Always respond to lawsuits and garnishment notices within the specified timeframes. Ignoring legal documents typically results in default judgments and lost opportunities to protect your rights.
Quitting Your Job: Some people think quitting their job will stop the garnishment, but this only delays it. Once you find new employment, the creditor can garnish your wages again, and you’ve lost income in the meantime.
Hiding Income: Attempting to hide income or work “under the table” can lead to serious legal consequences and doesn’t solve the underlying debt problem.
Waiting Too Long to Seek Help: The earlier you address wage garnishment, the more options you have. Waiting until you’re months behind on rent and utilities severely limits your choices.
Not Keeping Records: Maintain detailed records of all garnishment amounts, court documents, and communications with creditors. These records are essential if you need to challenge the garnishment or file for bankruptcy.
The Timeline: What to Expect
Understanding the typical timeline helps you plan your response:
Day 1-20 After Notice: This is your window to file an exemption claim. Use this time to gather financial documents and consult with an attorney.
Week 2-4: If you don’t file an exemption claim, garnishment typically begins with your next pay period after your employer receives notice.
Month 1-3: If you decide to file bankruptcy, this period is typically when you’ll work with your attorney to prepare your petition and supporting documents.
Month 3-6: In Chapter 7 bankruptcy, you’ll receive your discharge, permanently eliminating eligible debts and stopping garnishment. In Chapter 13, you’ll be in the early stages of your payment plan with wage garnishment stopped.
How Much Does It Cost to Stop Wage Garnishment?
The cost of stopping wage garnishment depends on your chosen method:
Exemption Claim: Filing an exemption claim has minimal court filing fees, typically under $100. If you hire an attorney to help, fees typically range from $500-$1,500.
Debt Negotiation: If you negotiate directly with the creditor, there’s no cost unless you hire a debt settlement company or attorney.
Bankruptcy: Chapter 7 bankruptcy attorney fees in Minneapolis typically range from $1,500-$2,500, plus a $338 court filing fee. Chapter 13 fees are usually $3,000-$4,000, with a $313 filing fee, though many attorneys allow you to pay fees through your bankruptcy plan.
While these costs may seem significant, compare them to the total amount that would be garnished over time. If $500 per month is being garnished, stopping it even three months earlier saves you $1,500.
Life After Wage Garnishment Stops
Once you’ve successfully stopped wage garnishment, focus on rebuilding your financial stability:
Create a Budget: Develop a realistic budget that accounts for all your income and expenses. Having your full paycheck again is an opportunity to get ahead, not fall behind in new ways.
Build an Emergency Fund: Even saving $25-$50 per paycheck can create a financial cushion that prevents future financial crises.
Address Credit Report Issues: Ensure the garnishment is properly reported as satisfied or discharged on your credit reports. Dispute any inaccuracies with the credit bureaus.
Consider Credit Counseling: Many bankruptcy filers must complete credit counseling, but this education can benefit anyone recovering from financial difficulty.
Stay Current on Ongoing Obligations: If you kept your house or car through bankruptcy, make these payments a top priority to avoid new problems.
Why Professional Legal Help Matters
While it’s possible to navigate wage garnishment issues on your own, having an experienced attorney significantly improves your outcomes:
Knowledge of Exemptions: Attorneys understand the complex exemption laws and can identify protections you might miss on your own.
Proper Documentation: Legal professionals know exactly what documentation courts require and how to present your case most effectively.
Negotiation Experience: Attorneys often have established relationships with creditors and know what settlement terms are realistic.
Bankruptcy Expertise: The bankruptcy process has strict rules and deadlines. Small mistakes can result in dismissed cases or lost property protections.
Court Representation: Having an attorney represent you in court hearings provides professionalism and expertise that improves your chances of success.
Stress Reduction: Dealing with wage garnishment is emotionally draining. Having a knowledgeable advocate handle the legal aspects allows you to focus on your job and family.
Frequently Asked Questions
Can wage garnishment take my entire paycheck? No. Minnesota law strictly limits garnishment to 25% of disposable earnings or the amount above 40 times the federal minimum wage, whichever is less. Certain income is completely exempt.
How long does wage garnishment last? Garnishment continues until the debt is paid in full, you successfully challenge it, file for bankruptcy, or work out an alternative arrangement with the creditor.
Will my employer know why my wages are being garnished? Your employer receives notice of the garnishment and the creditor’s name but typically doesn’t receive details about the nature of the debt.
Can multiple creditors garnish my wages at once? Generally, only one non-priority creditor can garnish your wages at a time in Minnesota. However, child support and tax obligations take priority and can be garnished simultaneously with other debts.
What if I move to a different state? The garnishment order typically follows you, though you may need to file exemption claims under your new state’s laws, which may be more or less protective than Minnesota’s.
How quickly can bankruptcy stop my wage garnishment? The automatic stay goes into effect immediately upon filing, which means garnishment stops the same day your bankruptcy petition is filed with the court.
Take Action Today
Wage garnishment doesn’t have to control your financial future. Whether through exemption claims, negotiation, or bankruptcy, you have legal options to stop or reduce wage garnishment and regain financial stability.
The key is taking action quickly. The 20-day window to file exemption claims passes quickly, and every paycheck garnished is money you can’t get back. The sooner you address the situation, the more options you’ll have and the more income you’ll protect.
Don’t face wage garnishment alone. An experienced bankruptcy and debt relief attorney can evaluate your situation, explain your options in plain language, and help you choose the best path forward for your unique circumstances.
Contact Buettner Law Group Today
If you’re facing wage garnishment in Minneapolis, the experienced legal team at Buettner Law Group is here to help. Attorney Brea A. Buettner-Stanchfield has extensive experience helping Minnesota residents stop wage garnishment and find lasting debt relief solutions.
We understand the stress and anxiety that wage garnishment causes. Our compassionate approach focuses on understanding your unique situation and developing a strategy that protects your income while addressing your long-term financial goals.
Schedule your free consultation today:
Brea A. Buettner-Stanchfield, Esq.
Buettner Law Group LLC
Phone: 612-377-5311
Email: brea@buettnerlawgroup.com