Creditors Rights and Bankruptcy

As a reformed creditors rights attorney I can tell you that creditors have a lot of remedies to attempt to collect money in Minnesota. The most common remedies include wage and bank garnishment. Once you have your wages or bank account garnished it is difficult to get those fund back unless you qualify for one of the exemptions. The exemptions are listed on the garnishment forms the creditors send to you. Creditors can even take it a step further by seizing your personal property including your vehicle. Most creditors do not take this step, since they are not likely to recover much after the property is taken and sold.
If any of these things happen to you the choices you have to remedy the situation are:

1. Pay your bills in full
2. Make an arrangement with the creditor
3. Let the garnishments run their course until the debt is paid
4. File for bankruptcy protection

If you file for bankruptcy protection within 90 days of the garnishment it may be possible for you to recover some of the garnished funds. You will need to consult with an attorney to determine if you can exempt some of those fund or are entitled to have the funds returned. The other thing bankruptcy will do is stop all the collection activities that includes lawsuits, garnishments, collection calls, and collection letters.
The best way to prevent a garnishment is being proactive in preventing it in the first place by opening your mail and answering any lawsuits you receive. You can also consult with a bankruptcy lawyer to determine if that may help with your situation. If you do not answer a complaint the creditor will take a default judgement that will give them the legal right to take funds from your bank account or wages.