Minnesota Debt Relief

Minnesota state Credit Card Debt law carries a Statute of Limitations (SOL), or time limit for filing suit, of 6 years on open-ended accounts, such as Credit Cards. The statute begins from the date of the first missed payment and is not altered by any subsequent partial payments. Defendants are given 20 days to answer a summons, unless the summons document specifies differently. Answers should be sent by certified mail, ensuring they arrive on time.

Judgment Enforcement

Minnesota creditors have 10 years to collect on judgments, accruing interest at 6.953% yearly. This rate is changed each year by the state. Judgments are automatic liens against the debtor’s real property. Homestead exemptions are allowed up to $200,000 or $500,000 for land used primarily for agriculture.

Wages can be garnished up to 25% or the amount exceeding 40 times the federal minimum weekly wage. Exempt amounts are only exempted for 20 days and the burden of proving exemption lies with the debtor.

Minnesota recognizes “judgment by confession” clauses, contract statements that automatically place judgment in favor of the Plaintiff for unpaid debt. For this reason, Michigan residents should take great care in signing any credit agreement.

Debt Settlement

Many consumers choose Debt Settlement rather than go to court or face bankruptcy. By letting consumers work out an interest free payment plan, Debt Settlement eases the financial burden while helping the parties reach an amicable solution to the problem of the unpaid debt. It also gives consumers more say in the payment plan, rather than leaving the decision up to the court.