Bill Text: MN SF33 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Conciliation court civil contempt penalty; consumer debt limitation period; assigned consumer debt default judgments regulation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-08 - HF substituted on General Orders HF80 [SF33 Detail]
Download: Minnesota-2013-SF33-Engrossed.html
1.2relating to judgments; providing a limitation period for actions arising out of
1.3consumer debt; prohibiting imprisonment for contempt in consumer debt cases;
1.4regulating assigned consumer debt default judgments; amending Minnesota
1.5Statutes 2012, sections 491A.02, subdivision 9; 550.011; proposing coding for
1.6new law in Minnesota Statutes, chapters 541; 548.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 491A.02, subdivision 9, is amended to read:
1.9 Subd. 9. Judgment debtor disclosure. Notwithstanding any contrary provision in
1.10rule 518 of the Conciliation Court Rules, unless the parties have otherwise agreed, if a
1.11conciliation court judgment or a judgment of district court on removal from conciliation
1.12court has been docketed in district court, the judgment creditor's attorney as an officer of
1.13the court may or the district court in the county in which the judgment originated shall,
1.14upon request of the judgment creditor, order the judgment debtor to mail to the judgment
1.15creditor information as to the nature, amount, identity, and locations of all the debtor's
1.16assets, liabilities, and personal earning. The information must be provided on a form
1.17prescribed by the Supreme Court, and the information shall be sufficiently detailed to
1.18enable the judgment creditor to obtain satisfaction of the judgment by way of execution
1.19on nonexempt assets and earnings of the judgment debtor. The order must contain a
1.20notice that failure to complete the form and mail it to the judgment creditor within ten
1.21days after service of the order may result in a citation for civil contempt of court.Cash
1.22bail posted as a result of being cited for civil contempt of court order under this section
1.23may be ordered payable to the creditor to satisfy the judgment, either partially or fully
1.24 Notwithstanding section 588.02, civil contempt under this subdivision is punishable only
1.25by fine and not imprisonment.
2.1EFFECTIVE DATE.This section is effective August 1, 2013.
2.2 Sec. 2. [541.053] LIMITATION OF ACTIONS BASED ON CONSUMER DEBT.
2.3Notwithstanding section 541.05, subdivision 1, clause (1), actions upon an obligation
2.4arising out of a consumer debt primarily for personal, family, or household purposes
2.5must be commenced within six years. After its expiration, the statute of limitations is
2.6not revived by the collection of a payment on an account, a discharge in a bankruptcy
2.7proceeding, or an oral or written reaffirmation of the debt.
2.8EFFECTIVE DATE.This section is effective August 1, 2013.
2.9 Sec. 3. [548.101] ASSIGNED CONSUMER DEBT DEFAULT JUDGMENTS.
2.10A party entitled to a judgment by default in an action upon an assigned obligation
2.11arising out of any consumer debt that is primarily for personal, family, or household
2.12purposes and in default at the time of assignment shall apply to the court and submit, in
2.13addition to the application for judgment:
2.14(1) a copy of the written contract between the debtor and original creditor or, if there
2.15was no written contract, other admissible evidence establishing the terms of the contract
2.16between the debtor and the original creditor, including the moving party's entitlement to
2.17the amounts described in clause (3);
2.18(2) admissible evidence establishing that the defendant owes the debt;
2.19(3) admissible evidence establishing that the amount claimed to be owed is accurate,
2.20including an itemization of the balance owed at the time the debt was first assigned to
2.21another party by the original creditor and a breakdown of post-assignment fees, interest,
2.22and interest rates;
2.23(4) documentation establishing a valid and complete chain of assignment of the debt
2.24from the original creditor to the moving party, including documentation or a bill of sale
2.25evidencing the assignment with proof that the particular debt at issue was included in the
2.26assignment referenced in the documentation or bill of sale;
2.27(5) proof that a summons and complaint were properly served on the debtor and that
2.28the debtor did not serve a timely answer; and
2.29(6) proof that the debtor was provided notice of the default judgment motion and
2.30hearing.
2.31EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
2.32motions for default judgment filed on or after August 1, 2013.
3.1 Sec. 4. Minnesota Statutes 2012, section 550.011, is amended to read:
3.2550.011 JUDGMENT DEBTOR DISCLOSURE.
3.3Unless the parties have otherwise agreed, if a judgment has been docketed in district
3.4court for at least 30 days, and the judgment is not satisfied, the judgment creditor's attorney
3.5as an officer of the court may or the district court in the county in which the judgment
3.6originated shall, upon request of the judgment creditor, order the judgment debtor to mail
3.7by certified mail to the judgment creditor information as to the nature, amount, identity,
3.8and locations of all the debtor's assets, liabilities, and personal earnings. The information
3.9must be provided on a form prescribed by the Supreme Court, and the information shall be
3.10sufficiently detailed to enable the judgment creditor to obtain satisfaction of the judgment
3.11by way of execution on nonexempt assets and earnings of the judgment debtor. The order
3.12must contain a notice that failure to complete the form and mail it to the judgment creditor
3.13within ten days after service of the order may result in a citation for civil contempt of
3.14court.Cash bail posted as a result of being cited for civil contempt of court order under
3.15this section may be ordered payable to the creditor to satisfy the judgment, either partially
3.16or fully Notwithstanding section 588.02, civil contempt under this section is punishable
3.17only by fine and not imprisonment.
3.18EFFECTIVE DATE.This section is effective August 1, 2013.
1.3consumer debt; prohibiting imprisonment for contempt in consumer debt cases;
1.4regulating assigned consumer debt default judgments; amending Minnesota
1.5Statutes 2012, sections 491A.02, subdivision 9; 550.011; proposing coding for
1.6new law in Minnesota Statutes, chapters 541; 548.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2012, section 491A.02, subdivision 9, is amended to read:
1.9 Subd. 9. Judgment debtor disclosure. Notwithstanding any contrary provision in
1.10rule 518 of the Conciliation Court Rules, unless the parties have otherwise agreed, if a
1.11conciliation court judgment or a judgment of district court on removal from conciliation
1.12court has been docketed in district court, the judgment creditor's attorney as an officer of
1.13the court may or the district court in the county in which the judgment originated shall,
1.14upon request of the judgment creditor, order the judgment debtor to mail to the judgment
1.15creditor information as to the nature, amount, identity, and locations of all the debtor's
1.16assets, liabilities, and personal earning. The information must be provided on a form
1.17prescribed by the Supreme Court, and the information shall be sufficiently detailed to
1.18enable the judgment creditor to obtain satisfaction of the judgment by way of execution
1.19on nonexempt assets and earnings of the judgment debtor. The order must contain a
1.20notice that failure to complete the form and mail it to the judgment creditor within ten
1.21days after service of the order may result in a citation for civil contempt of court.
1.22
1.23
1.24 Notwithstanding section 588.02, civil contempt under this subdivision is punishable only
1.25by fine and not imprisonment.
2.1EFFECTIVE DATE.This section is effective August 1, 2013.
2.2 Sec. 2. [541.053] LIMITATION OF ACTIONS BASED ON CONSUMER DEBT.
2.3Notwithstanding section 541.05, subdivision 1, clause (1), actions upon an obligation
2.4arising out of a consumer debt primarily for personal, family, or household purposes
2.5must be commenced within six years. After its expiration, the statute of limitations is
2.6not revived by the collection of a payment on an account, a discharge in a bankruptcy
2.7proceeding, or an oral or written reaffirmation of the debt.
2.8EFFECTIVE DATE.This section is effective August 1, 2013.
2.9 Sec. 3. [548.101] ASSIGNED CONSUMER DEBT DEFAULT JUDGMENTS.
2.10A party entitled to a judgment by default in an action upon an assigned obligation
2.11arising out of any consumer debt that is primarily for personal, family, or household
2.12purposes and in default at the time of assignment shall apply to the court and submit, in
2.13addition to the application for judgment:
2.14(1) a copy of the written contract between the debtor and original creditor or, if there
2.15was no written contract, other admissible evidence establishing the terms of the contract
2.16between the debtor and the original creditor, including the moving party's entitlement to
2.17the amounts described in clause (3);
2.18(2) admissible evidence establishing that the defendant owes the debt;
2.19(3) admissible evidence establishing that the amount claimed to be owed is accurate,
2.20including an itemization of the balance owed at the time the debt was first assigned to
2.21another party by the original creditor and a breakdown of post-assignment fees, interest,
2.22and interest rates;
2.23(4) documentation establishing a valid and complete chain of assignment of the debt
2.24from the original creditor to the moving party, including documentation or a bill of sale
2.25evidencing the assignment with proof that the particular debt at issue was included in the
2.26assignment referenced in the documentation or bill of sale;
2.27(5) proof that a summons and complaint were properly served on the debtor and that
2.28the debtor did not serve a timely answer; and
2.29(6) proof that the debtor was provided notice of the default judgment motion and
2.30hearing.
2.31EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
2.32motions for default judgment filed on or after August 1, 2013.
3.1 Sec. 4. Minnesota Statutes 2012, section 550.011, is amended to read:
3.2550.011 JUDGMENT DEBTOR DISCLOSURE.
3.3Unless the parties have otherwise agreed, if a judgment has been docketed in district
3.4court for at least 30 days, and the judgment is not satisfied, the judgment creditor's attorney
3.5as an officer of the court may or the district court in the county in which the judgment
3.6originated shall, upon request of the judgment creditor, order the judgment debtor to mail
3.7by certified mail to the judgment creditor information as to the nature, amount, identity,
3.8and locations of all the debtor's assets, liabilities, and personal earnings. The information
3.9must be provided on a form prescribed by the Supreme Court, and the information shall be
3.10sufficiently detailed to enable the judgment creditor to obtain satisfaction of the judgment
3.11by way of execution on nonexempt assets and earnings of the judgment debtor. The order
3.12must contain a notice that failure to complete the form and mail it to the judgment creditor
3.13within ten days after service of the order may result in a citation for civil contempt of
3.14court.
3.15
3.16
3.17only by fine and not imprisonment.
3.18EFFECTIVE DATE.This section is effective August 1, 2013.
