Minnesota temporarily suspended wage garnishments for consumer debt, such as loans and credit cards, under an executive order signed May 4 by Gov. Tim Walz (D).
Federal, state, local funds, and tribal issued to relieve the economic hardships resulting from the new coronavirus pandemic are considered need-based government assistance that is exempt from creditor claims, including garnishment, Executive Order 20-50 said.
The order does not apply to child support and spousal support, which still may be collected.
The ability for creditors to gain information about debtors’ assets, liabilities, and personal earnings also was suspended. However, interest may continue to accrue on outstanding debts.
A penalty of up to $25,000 could be assessed for each violation.
Garnishments on debts related to goods or services bought primarily for personal, family, or household use were suspended until the Covid-19 emergency ends, Executive Order 20-01 said March 13.
To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergtax.com
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