On May 4, 2020, Minnesota Governor Tim Walz issued Executive Order 20-50, which suspended certain collections actions relating to consumer debts. Specifically, the Executive Order prohibited creditors from serving garnishments or seeking information about a consumer debtor’s assets, liabilities, and personal earnings, in connection with consumer judgment.
Executive Order 20-50 was modified on January 7, 2021, expanding the stay to levies against consumer debtors, while narrowing the scope of garnishments that were stayed. By virtue of Executive Order 21-02, the suspension from serving earnings garnishments and levies was limited to only judgments entered on or after May 4, 2020. Therefore, as of January 7, 2021, efforts to collect funds to satisfy judgments entered prior to May 4, 2020 through earnings garnishments and levies is permissible and allowed. However, demands for disclosure of financial information with respect to consumer debts remained stayed.
On May 6, 2021, Governor Walz issued Executive Order 21-21, which provides for a sunset of the Executive Orders staying the ability to serve garnishments and seeking the disclosure of financial information. Executive Order 21-21 provides that two business days after the Commissioner of the Minnesota Department of Health notifies the Governor and the public that 70% of people 16 years of age and older have received at least one dose of the COVID-19 vaccine, or on June 30, 2021 at 11:59 p.m., whichever occurs first, the suspension of garnishments and levies for consumer judgments entered after May 4, 2020, as well as the suspension of demands for disclosure shall be lifted.
Notwithstanding the sunset of Executive Orders 20-50 and 21-02, judgments entered prior to May 4, 2020 may be collected through earnings garnishments and levies. Likewise, creditors are permitted to garnish earnings and bank accounts to satisfy amounts due under commercial, agricultural, or business related judgments.