What money in my bank account is protected from creditors in Minnesota?

1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The 31 C.F.R. Part 212 two-month rule automatically protects direct-deposited federal benefits.

2. State Wild-Card / Cash Exemption. Minnesota has no traditional cash wild card. However, Minn. Stat. § 550.37 subd. 14 protects wages traceable to deposits made within 20 days before garnishment to extent paid; § 571.922 provides standard wage-garnishment formula. § 550.37 subd. 13 exempts $11,250 motor vehicle and other specific items; subd. 12a protects $7,200 in tools of trade.

3. Other Source-Specific Exemptions. § 550.37 subd. 14 public assistance; § 268.192 unemployment; § 176.175 workers' comp; child support and alimony; § 61A.04 life insurance; § 550.37 subd. 22 government benefits.

4. Retirement Accounts. Minn. Stat. § 550.37 subd. 24 exempts IRAs, 401(k)s, 403(b)s, Roth IRAs, ERISA plans up to $75,000 present value (with reasonable necessary support analysis for excess); public-employee pensions separately protected.

5. Joint Accounts. Minnesota does not recognize tenancy by entireties; joint bank accounts reachable to extent of debtor's contribution under Multiple Party Accounts Act.

6. Claim of Exemption Process. Minn. Stat. § 571.924: garnishment summons served; bank serves Exemption Notice and Claim form on debtor; debtor must return claim form within 10 days of receipt to creditor and bank; if not contested in 6 days, funds released.

7. Burden of Proof. Debtor proves exempt source on claim form.

8. Penalty for Wrongful Garnishment. § 571.927 imposes costs and damages for bad-faith garnishment.

9. Bankruptcy Interplay. Minnesota allows election of state or federal exemptions; Chapter 7 reaches non-exempt cash; Chapter 13 retains.

This is legal information, not legal advice.