Minnesota debt: six years, and garnishment that depends on what you earn

Six years for actions on consumer debt for personal, family or household purposes (Minn. Stat. 541.053), and six years for contracts generally (541.05). After the six years expire, the limit is not revived by a payment collected on the account, a bankruptcy discharge, or a spoken or written reaffirmation (Minn. Stat. 541.053).

Garnishment is tiered by income: 10% of disposable earnings if weekly income is above 40 and up to 60 times the minimum wage, 15% above 60 and up to 80 times, and 25% above that, and never more than the amount above 40 times the higher of the state or federal minimum wage (Minn. Stat. 571.922).

These tiers came from the Minnesota Debt Fairness Act, signed on May 21, 2024, with the garnishment changes taking effect on April 1, 2025. Wages cannot be garnished for six months after you received need-based public assistance.

For the federal floor beneath Minnesota's rule, and what to do if your pay is already being garnished, see how much of your wages can be garnished.

After the 6-year limit runs out, a collector must not sue or threaten to; read what to do about an old debt before paying anything.

Limits vary a lot between states: by comparison, New Jersey sets 6 years and Tennessee sets 6 years for similar debts.

Our guide on how to dispute a debt with a collector applies in Minnesota, with a free sample letter.

National collectors active in Minnesota include Paragon Revenue Group and Portfolio Recovery Associates; our guides list their official dispute addresses.

For the court side of a Minnesota debt, from the summons to a possible judgment, see how to defend a debt collection lawsuit.

The Debt Fairness Act also bans reporting medical debt to credit bureaus. For uninsured patients, or patients whose coverage the hospital does not know, hospitals must screen for charity care eligibility and may not refer the bill to collections until they find the patient ineligible or deny an application (Minn. Stat. 144.587, in force since November 1, 2023). If a hospital bill reached collections without that screening, ask the hospital about it in writing.

The federal dispute right applies to collectors: a written dispute inside the validation period makes the collector stop until it mails verification.

For medical bills in Minnesota, see what happens if you do not pay medical bills and whether medical bills affect your credit score.

Before a Minnesota medical bill reaches court, ask for an itemized bill and apply for financial assistance; see negotiating a hospital bill and your options if you cannot pay medical bills.