Minnesota debt statute of limitations

Minnesota limitation periods by type of debt

Minnesota applies a 6-year period to contracts or obligations, express or implied.

What the Minnesota statute says

“Except where the Uniform Commercial Code otherwise prescribes, the following actions shall be commenced within six years: (1) upon a contract or other obligation, express or implied, as to which no other limitation is expressly prescribed;”
Minn. Stat. § 541.05, subd. 1(1)

“actions upon an obligation arising out of a consumer debt primarily for personal, family, or household purposes shall be commenced within six years.”
Minn. Stat. § 541.053

Does paying restart the clock in Minnesota?

Once the consumer-debt period expires, it is not revived by a payment, a bankruptcy discharge, or an oral or written reaffirmation of the debt (Minn. Stat. § 541.053).

“No acknowledgment or promise shall be evidence of a new or continuing contract sufficient to take the case out of the operation of this chapter unless the same is contained in some writing signed by the party to be charged thereby; but this section shall not alter the effect of a payment of principal or interest.”
Minn. Stat. § 541.17

Minnesota’s own debt collection law

Minnesota's collection agency law (Minn. Stat. ch. 332) lists prohibited practices for collection agencies, debt buyers and collectors, including a ban on suing on a debt outside the § 541.053 limitations period (§ 332.37(a)(24)).

“No collection agency, debt buyer, or collector shall: (1) in collection letters or publications, or in any communication, oral or written threaten wage garnishment or legal suit by a particular lawyer, unless it has actually retained the lawyer;”
Minn. Stat. § 332.37(a)

If a creditor wins a judgment in Minnesota

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Minnesota rules take over.

How long a judgment lasts

A Minnesota money judgment survives, and its lien on the debtor's real property in the county continues, for ten years after entry; a creditor wanting to extend it must sue on the judgment within that ten years (Minn. Stat. § 541.04), and child support judgments have their own renewal rule.

“From the time of docketing the judgment is a lien, in the amount unpaid, upon all real property in the county then or thereafter owned by the judgment debtor, but it is not a lien upon registered land unless it is also recorded pursuant to sections 508.63 and 508A.63. The judgment survives, and the lien continues, for ten years after its entry.”
Minn. Stat. § 548.09, subd. 1

Wage garnishment

For non-child-support judgments, Minnesota caps garnishment at the lesser of a tiered percentage of disposable earnings (25% if weekly income exceeds 80 times the greater of the state or federal minimum hourly wage, 15% if above 60 up to 80 times, 10% if above 40 up to 60 times) or the amount by which disposable earnings exceed 40 times that wage.

“Unless the judgment is for child support, the maximum part of the aggregate disposable earnings of an individual for any pay period subjected to garnishment may not exceed the lesser of: (1) 25 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds 80 times the greater of the hourly wage described in paragraph (b);”
Minn. Stat. § 571.922

Small claims court

Minnesota conciliation (small claims) court generally hears claims up to $20,000, but only up to $4,000 if the claim involves a consumer credit transaction, subject to exceptions in subdivisions 4 and 5.

“the conciliation court has jurisdiction to hear, conciliate, try, and determine civil claims if the amount of money or property that is the subject matter of the claim does not exceed: (1) $20,000; or (2) $4,000, if the claim involves a consumer credit transaction.”
Minn. Stat. § 491A.01, subd. 3a(a)

Time-barred debt in Minnesota

Once the consumer-debt limitations period expires, it is not revived by collecting a payment, a bankruptcy discharge, or an oral or written reaffirmation of the debt.

“After its expiration, the statute of limitations is not revived by the collection of a payment on an account, a discharge in a bankruptcy proceeding, or an oral or written reaffirmation of the debt.”
Minn. Stat. § 541.053

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Minnesota treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Minnesota?

6 years for credit-card debt and 6 years on a written contract, under Minn. Stat. § 541.05. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Minnesota?

Once the consumer-debt period expires, it is not revived by a payment, a bankruptcy discharge, or an oral or written reaffirmation of the debt (Minn. Stat. § 541.053).

Does Minnesota have its own debt collection law?

Minnesota's collection agency law (Minn. Stat. ch. 332) lists prohibited practices for collection agencies, debt buyers and collectors, including a ban on suing on a debt outside the § 541.053 limitations period (§ 332.37(a)(24)). (Minn. Stat. § 332.37(a)).

How long does a court judgment last in Minnesota?

A Minnesota money judgment survives, and its lien on the debtor's real property in the county continues, for ten years after entry; a creditor wanting to extend it must sue on the judgment within that ten years (Minn. Stat. § 541.04), and child support judgments have their own renewal rule. (Minn. Stat. § 548.09, subd. 1).

How much of my pay can be garnished in Minnesota?

For non-child-support judgments, Minnesota caps garnishment at the lesser of a tiered percentage of disposable earnings (25% if weekly income exceeds 80 times the greater of the state or federal minimum hourly wage, 15% if above 60 up to 80 times, 10% if above 40 up to 60 times) or the amount by which disposable earnings exceed 40 times that wage. (Minn. Stat. § 571.922).

What if I am sued on an old debt in Minnesota?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.