Minnesotans dealing with medical debt now have enhanced protections thanks to the Debt Fairness Act signed by Governor Tim Walz. This important legislation provides crucial safeguards for individuals struggling with medical expenses.
Key features of the Debt Fairness Act include:
- Prohibiting the automatic transfer of medical debt to a spouse.
- Banning the reporting of medical debt to credit bureaus.
- Preventing the denial of necessary medical care due to unpaid bills.
Minnesota Attorney General Keith Ellison praised the act, saying, “We all agree that if you borrow money, you should pay it back. We also all agree that we shouldn’t punish people for getting sick. A debt-collection system that makes it harder for people to pay back what they owe does nobody any good. And we also agree that debt collection shouldn’t create more debt.”
Additionally, the act reforms debt collection practices by:
- Implementing income-based garnishment rates ranging from 10% to 25%, instead of the previous flat rate of 25%
- Extending wage garnishment protections to all residents and workers in Minnesota.
This transformative legislation garnered widespread support, including from religious leaders, throughout its progression in the Minnesota Legislature. At Walker & Walker Law, we are dedicated to promoting fairness and justice for our clients. We understand that financial hardships can happen to anyone, and our mission is to provide compassionate, effective legal solutions to help individuals reclaim their financial well-being. Our unwavering commitment to fairness drives us to fight for the rights of those burdened by debt, ensuring they receive the protection and support they deserve. Whether it’s navigating bankruptcy, defending against unfair debt collection practices, or providing legal guidance on financial matters, Walker & Walker Law stands as a steadfast advocate for equitable treatment and a brighter financial future for all.
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