Sunsetting of MN Governor’s Executive Orders related to suspension of consumer collection activities
As many of you know, Emergency Executive Order 20-50, from May 4, 2020 suspended a number of collection activities related consumer debtors only.The Order suspended “service of a garnishment summons on a consumer debtor or consumer garnishee”.The Order also suspended obtaining “information about a consumer debtor’s assets, liabilities, and personal earnings”.“For the purposes of this Executive Order, the terms ‘Consumer Debtor’ and ‘Consumer Garnishee’ have the definition of ‘debtor’ and ‘garnishee’ as used in Minnesota Statutes section 571.712, subdivisions 2(b) and 2(c), when applied to debtors and garnishees who are natural persons and whose debt originated from the purchase of goods or services purchased primarily for a personal, family, or household purpose, and not for a commercial, agricultural, or business purpose.”
However, on January 7, 2021, Executive Order 21-02 amended Order 20-50 to add levies to the suspended activities as well.Up to that point only Garnishments, and formal demands for disclosure of financial information had been suspendedHowever, Order 21-02 added a significant limitation on the suspension of garnishments and levies.Order 21-02 added language limiting the suspension to judgments entered on or after May 4, 2020 and language allowing for wage garnishments and levies on judgments entered prior to May 4, 2020.Earlier the suspension was of garnishments was on all judgments old and new.
On May 6, 2021, the MN Governor issued Executive Order 21-21.This Order provides a “sunset” provision on Orders 20-50 and 21-02.Upon determining that seventy percent (70%) of people sixteen years of age and older have received at least one dose of COVID-19 vaccine, the Commissioner of the MinnesotaDepartment of Health is to notify the Governor and the public.Effective two business days after that notification, or on Wednesday, June 30, 2021 at 11:59 pm, whichever occurs first, Executive Orders 20-50 and 21-02, (as well as others) will be rescinded.This means that on June 30, 2021, or perhaps even earlier, the suspension of garnishments, levies and demands for disclosure related to consumer debtors will not long be in effect.
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