Minnesota Debt Collection Laws: Time Limits, Garnishment and Your Rights
Minnesota debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.
Quick answers for Minnesota
- Time limit to sue on a written contract
- 6 years for consumer debts (personal, family or household) and for contract actions generally. Minn. Stat. § 541.053; § 541.05
- Wage garnishment limit
- Stricter than federal law, on a sliding scale. Earnings up to 40 times the higher of the state or federal minimum wage per week are fully protected. Minn. Stat. § 571.922; § 550.37, subds. 13-14
- Money protected in a bank account
- No general dollar exemption for bank accounts outside bankruptcy. Exempt funds traceable to their source stay protected in an account, including need-based government assistance, wages for 20 days after deposit, and retirement and health savings accounts. Minn. Stat. § 550.37, subds. 13, 14, 20, 28; Commerce adjustment effective July 1, 2026
- Answering a debt lawsuit
- Serve a written answer on the plaintiff within 21 days after you are served with the summons. The deadline runs from service of the summons. Minn. R. Civ. P. 12.01
Last verified: 2026-10-26
Time limits
| Time limit to sue on a written contract | 6 years for consumer debts (personal, family or household) and for contract actions generally. § 541.05: https://www.revisor.mn.gov/statutes/cite/541.05 Source: Minn. Stat. § 541.053; § 541.05 |
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| Time limit for credit cards and open accounts | 6 years for any consumer debt, including credit cards. Source: Minn. Stat. § 541.053 |
| Can a payment restart the clock? | For consumer debt, once the 6-year period has expired it is not revived by collecting a payment, by a bankruptcy discharge, or by an oral or written reaffirmation of the debt. Whether a payment made before the period expires restarts it is not addressed by § 541.053. Source: Minn. Stat. § 541.053 |
| How long a judgment lasts | 10 years. An action on a judgment must be started within 10 years after the judgment is entered. Source: Minn. Stat. § 541.04 |
If you are sued
| Answering a debt lawsuit | Serve a written answer on the plaintiff within 21 days after you are served with the summons. The deadline runs from service of the summons. Source: Minn. R. Civ. P. 12.01 |
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Garnishment and what creditors can't take
| Wage garnishment limit | Stricter than federal law, on a sliding scale. Earnings up to 40 times the higher of the state or federal minimum wage per week are fully protected. Above that, no more than 10% of disposable earnings may be garnished if weekly income is up to 60 times the minimum wage, 15% if up to 80 times, and 25% if above 80 times (never more than the amount above 40 times the minimum wage). Exempt wages stay exempt for 20 days after being deposited in a bank. Public assistance recipients' earnings are fully exempt. § 550.37: https://www.revisor.mn.gov/statutes/cite/550.37 |
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| Money protected in a bank account | No general dollar exemption for bank accounts outside bankruptcy. Exempt funds traceable to their source stay protected in an account, including need-based government assistance, wages for 20 days after deposit, and retirement and health savings accounts. In bankruptcy only, a $1,650 wildcard exemption can cover bank funds. Wildcard amount from the Department of Commerce adjustment table: https://mn.gov/commerce/money/depository/interest-rates/dollar-amounts/ (statute text shows $1,500). |
| Homestead exemption | $540,000 for a homestead (up to 160 acres), or $1,350,000 if used primarily for agriculture, effective July 1, 2026. Inflation-adjusted every even-numbered year; the statute text before the July 1, 2026 adjustment showed $510,000 / $1,275,000 (https://www.revisor.mn.gov/statutes/cite/510.02). Commerce noted that amounts first published in April-May 2026 were incorrect and replaced them on June 29, 2026. |
| Vehicle exemption | One motor vehicle up to $10,200 in value; or one vehicle regularly used for a person with a physical disability up to $27,000; or one vehicle modified for a disability up to $110,000; or one vehicle needed for the debtor's trade or business up to $13,750 (amounts effective July 1, 2026). Statute text before the 2026 adjustment: $10,000 / $25,000 / $100,000 / $12,500 (https://www.revisor.mn.gov/statutes/cite/550.37). |
| Claiming an exemption | When a bank account is levied, the bank must mail the debtor a notice and two exemption claim forms within two business days; the funds are frozen for 14 days. To claim money as exempt, the completed exemption form must reach the bank within 14 days after the notices were mailed, or the funds are turned over to the creditor. If the creditor objects, it must file a Notice of Objection and Notice of Hearing, and the court holds a hearing 5 to 7 business days later. A claim made in bad faith, or a bad-faith objection by the creditor, can lead to costs, fees and up to $100 in penalties. Wage exemptions under § 571.922 apply automatically whether or not claimed (§ 550.37, subd. 13). |
Debt collectors and interest
| State debt collection law | Yes. Minnesota's Collection Agencies Act regulates collection agencies, debt buyers and their collectors and prohibits listed practices. A separate law (Minn. Stat. ch. 332C) applies to anyone collecting medical debt, including health care providers collecting their own bills. Ch. 332C.02 prohibited practices: https://www.revisor.mn.gov/statutes/cite/332C.02 |
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| Debt collector licensing | Yes. Collection agencies and debt buyers must be licensed by the Minnesota Department of Commerce, and individual collectors must register. Licenses expire each June 30. Source: Minn. Stat. § 332.33 |
| Medical debt protections | Yes. Medical debt may not be reported to credit bureaus, and credit bureaus may not include it in credit reports. Medical debt collectors may not suggest that needed care will be denied because of a debt, may not sue after the 6-year limitations period, may not add interest or fees unless the original agreement or law allows them, must stop robocalls when asked, and must include the Attorney General's phone number and a notice of the right to hire a lawyer in the first collection letter. Enacted in 2024 (2024 Minn. Laws ch. 114, art. 3). § 332C.02: https://www.revisor.mn.gov/statutes/cite/332C.02 Source: Minn. Stat. §§ 332C.02, 332C.03 |
| Interest rate limits | For judgments of $50,000 or less, simple interest at the one-year Treasury yield rounded to the nearest 1%, or 4%, whichever is greater, set each December by the state court administrator for the next year. Judgments over $50,000 bear 10% a year. The general legal rate is 6% unless a different written rate is agreed, and the general usury cap is 8%, with many exceptions under other laws. § 334.01: https://www.revisor.mn.gov/statutes/cite/334.01. |
Where to get help in Minnesota
- Minnesota Attorney General's Office (consumer complaints); Minnesota Department of Commerce (licenses collection agencies)
- File a complaint or claim
Debt & Collections FAQ
What is the statute of limitations on debt in Minnesota?
6 years for consumer debts (personal, family or household) and for contract actions generally.
How long can a creditor sue on a credit card debt in Minnesota?
6 years for any consumer debt, including credit cards.
Does making a payment restart the statute of limitations in Minnesota?
For consumer debt, once the 6-year period has expired it is not revived by collecting a payment, by a bankruptcy discharge, or by an oral or written reaffirmation of the debt.
How long does a court judgment last in Minnesota?
10 years. An action on a judgment must be started within 10 years after the judgment is entered.
How much of my wages can be garnished in Minnesota?
Stricter than federal law, on a sliding scale. Earnings up to 40 times the higher of the state or federal minimum wage per week are fully protected. Above that, no more than 10% of disposable earnings may be garnished if weekly income is up to 60 times the minimum wage, 15% if up to 80 times, and 25% if above 80 times (never more than the amount above 40 times the minimum wage). Exempt wages stay exempt for 20 days after being deposited in a bank. Public assistance recipients' earnings are fully exempt.
How much money in a bank account is protected from creditors in Minnesota?
No general dollar exemption for bank accounts outside bankruptcy. Exempt funds traceable to their source stay protected in an account, including need-based government assistance, wages for 20 days after deposit, and retirement and health savings accounts. In bankruptcy only, a $1,650 wildcard exemption can cover bank funds.
What is the homestead exemption in Minnesota?
$540,000 for a homestead (up to 160 acres), or $1,350,000 if used primarily for agriculture, effective July 1, 2026.
Can a creditor take my car in Minnesota?
One motor vehicle up to $10,200 in value; or one vehicle regularly used for a person with a physical disability up to $27,000; or one vehicle modified for a disability up to $110,000; or one vehicle needed for the debtor's trade or business up to $13,750 (amounts effective July 1, 2026).
What debt collection practices are illegal in Minnesota?
Yes. Minnesota's Collection Agencies Act regulates collection agencies, debt buyers and their collectors and prohibits listed practices. A separate law (Minn. Stat. ch. 332C) applies to anyone collecting medical debt, including health care providers collecting their own bills.
Do debt collectors need a license in Minnesota?
Yes. Collection agencies and debt buyers must be licensed by the Minnesota Department of Commerce, and individual collectors must register. Licenses expire each June 30.
What protections apply to medical debt in Minnesota?
Yes. Medical debt may not be reported to credit bureaus, and credit bureaus may not include it in credit reports. Medical debt collectors may not suggest that needed care will be denied because of a debt, may not sue after the 6-year limitations period, may not add interest or fees unless the original agreement or law allows them, must stop robocalls when asked, and must include the Attorney General's phone number and a notice of the right to hire a lawyer in the first collection letter.
What is the maximum legal interest rate in Minnesota?
For judgments of $50,000 or less, simple interest at the one-year Treasury yield rounded to the nearest 1%, or 4%, whichever is greater, set each December by the state court administrator for the next year. Judgments over $50,000 bear 10% a year. The general legal rate is 6% unless a different written rate is agreed, and the general usury cap is 8%, with many exceptions under other laws.
How do I respond to a debt collection lawsuit in Minnesota?
Serve a written answer on the plaintiff within 21 days after you are served with the summons. The deadline runs from service of the summons.
How do I stop a garnishment or claim an exemption in Minnesota?
When a bank account is levied, the bank must mail the debtor a notice and two exemption claim forms within two business days; the funds are frozen for 14 days. To claim money as exempt, the completed exemption form must reach the bank within 14 days after the notices were mailed, or the funds are turned over to the creditor. If the creditor objects, it must file a Notice of Objection and Notice of Hearing, and the court holds a hearing 5 to 7 business days later. A claim made in bad faith, or a bad-faith objection by the creditor, can lead to costs, fees and up to $100 in penalties.
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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.