Debt relief in Minnesota: collection rules, time limits and your options
Updated November 9, 2026
Minnesota at a glance (checked November 2026)
| Minnesota | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years; a later payment doesn't restart it |
| Wage garnishment for consumer debt | 10%, 15% or 25% of take-home pay, depending on what you earn |
| Medical debt | Can't be reported to the credit bureaus |
| State debt collection law | Minnesota Collection Agencies Act |
| Who licenses debt collectors | Minnesota Department of Commerce |
| Where to complain | Minnesota Attorney General, and the CFPB |
Debt collection rules in Minnesota
Collection agencies need a license from the Minnesota Department of Commerce, and the collectors who work for them must be registered (Minn. Stat. chapter 332). The law lists unfair practices that can cost a collector its license, on top of the federal rules.
The federal Fair Debt Collection Practices Act applies to third-party collectors too. They can't call before 8 a.m. or after 9 p.m., must send you a validation notice, and have to stop collecting if you dispute the debt in writing within 30 days, until they verify it.
Minnesota's Debt Fairness Act added protections for medical bills from October 2024. Medical debt can't be reported to the credit bureaus, and a provider can't refuse medically necessary care because of an unpaid bill.
How long creditors have to sue
Minnesota gives creditors 6 years for most consumer debts, including credit cards, personal loans and medical bills (Minn. Stat. 541.053). The clock usually starts when you default.
Once the 6 years are up, Minnesota law says a payment, a bankruptcy discharge, or a spoken or written promise to pay doesn't restart them. A collector can still ask you to pay but can't sue you or threaten to.
In Minnesota, a lawsuit can start as soon as you're handed the papers, even if they haven't been filed with the court yet. You usually have 21 days to answer in writing, so don't ignore the papers because the court has no record of the case.
What can be garnished in Minnesota
For lawsuits started on or after June 1, 2025, Minnesota limits wage garnishment by income (Minn. Stat. 571.922):
| Weekly take-home pay | Most a creditor can take |
|---|---|
| Up to 40 times the minimum wage | Nothing |
| 40 to 60 times the minimum wage | 10% |
| 60 to 80 times the minimum wage | 15% |
| More than 80 times the minimum wage | 25% |
A creditor can never take so much that you're left with less than 40 times the minimum wage for the week. Child support follows separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Minnesota
- Nonprofit credit counseling can roll your cards into one debt management plan, usually at lower rates. Minnesota requires debt management companies to register with the Department of Commerce, so check before you sign up.
- See what minimum payments really cost: our minimum payment calculator shows how many years the minimums would take and how much interest you'd pay.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Minnesota lets you choose between its own exemption list and the federal one. The state list protects much more home equity, so homeowners often choose it. A bankruptcy attorney can tell you which keeps more of what you own.
Where to get help or complain
- Minnesota Attorney General, debt collection explains your rights with collectors and how to file a complaint.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- LawHelpMN has a free booklet on dealing with debt and helps you find legal aid.
General information about Minnesota law, not legal advice. Checked November 2026.