So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.
Since the judgment was entered by the court, 25% of your wages may be garnished in Minnesota
You may want to consider a chapter 7
bankruptcy. I will explain.
As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13
. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.
A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.
A Chapter 13 bankruptcy is a repayment plan
for an individual. It may require that you repay some of your unsecured credit card debt
over a 3 -5 year period. However, you may retain assets that exceed your exemption.
Here are the exemptions for Minnesota:
Please let me know if you have any questions concerning my answer.