How to Get Debt Relief in Minnesota

Sarah Edwards | October 19, 2022

Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

When you find the debt relief you deserve

Summary: If you're struggling with debt in Minnesota, SoloSuit can help you find the relief you need.

Residents of Minnesota carry an average of nearly $10,000 in credit card debt. With inflation rising and gas and home prices up by double digits since last year, it's no surprise that people are having difficulty paying down their debt.

The state of Minnesota has a cost of living index of 100, making it a bit higher than the average, especially when it comes to groceries and transportation.

Having debt is a part of life for most people. However, when that debt becomes overbearing, or when it significantly reduces your quality of life, it's time to take action.

You may need to make concessions to pay it off quickly or look for debt relief programs. Concessions can include setting up a strict budget that you adhere to, seeking debt consolidation or debt settlement programs, or declaring bankruptcy.

Both the federal government and state governments offer certain protections for debtors who owe lenders money. Combining these protections with the options available for debt relief allows debtors to take control of their financial responsibilities and regain their footing.

In this article, we'll discuss the protections offered by the government as well as debt relief programs available for individuals in Minnesota.

How does the federal government protect consumers?

In 1977, the federal government established the Fair Debt Collection Practices Act (FDCPA). This act was created to protect individuals who owe money from abusive or harassing tactics by creditors attempting to collect a debt.

The FDCPA outlined a specific set of guidelines that debt collectors must follow when they communicate with debtors. Activities that were barred by the FDCPA include:

Communicating with anyone besides the consumer or an attorney about the debt
Threatening to harm the reputation of the consumer if they don't pay their debt
Causing a telephone to ring repeatedly with the intent of annoying the consumer
Not identifying themselves as a debt collector
Using written material that suggests the debt collector is from the government

Outside of barring certain debt collection tactics, the FDCPA also declares what activities are legal and establishes rules for civil liability should a debt collector disregard the law.

If you're currently being pursued by a debt collector and feel that their actions constitute harassment, you may opt to file a complaint with the Consumer Financial Protection Bureau (CFPB).

How do the statute of limitations laws work for Minnesota?

Each state has its own statute of limitations laws. These laws establish a time frame during which debt collectors and creditors may pursue payment for the debt in a court of law. After the time has passed, debt collectors may no longer pursue the debt in court.

The Minnesota statute of limitations for debt includes the following:

Minnesota Statute of Limitations on Debt
Debt Type	Deadline in Years
Auto Loans	4
State tax	5
Mortgage	6
Medical	6
Credit card	6
Judgements	10
Source: Findlaw

If an outstanding debt has passed the statute of limitations threshold, the creditor can no longer file a lawsuit against the debtor.

However, this does not mean that the consumer no longer owes the debt. The creditor can continue to call or write to the consumer, and the statute of limitations will restart if the consumer validates the debt or makes a payment of any sort.

Can debt consolidation help get me out of debt?

Debt consolidation involves working with a debt consolidation lender to obtain a loan that's used to pay off all of your outstanding debt. Instead of making payments to several different creditors, you'll make one monthly payment to your new lender.

Oftentimes, a debt consolidation loan allows you to pay off debts quicker with less money going toward interest expenses.

For example, if you have an outstanding debt of $10,000 that's distributed among eight creditors, you're likely making payments to every creditor at varying amounts of interest. Obtaining a debt consolidation loan for $10,000 to pay off all of your outstanding debt will allow you to pay off your creditors and make one single payment to your new lender.

If the lender charges an interest rate lower than your other loans, you'll be able to put more toward the outstanding principal and less toward interest.

To obtain a debt consolidation loan, you'll need to have a credit score of at least 650. This option is best for those who want to pay down their debts quickly and can meet the lending requirements for debt consolidation lenders.

How does the debt settlement process work?

You've likely seen advertisements or heard of debt settlement companies that offer to reduce the overall amount of debt you owe. You may hear about people who were able to reduce their outstanding balances with creditors by as much as 50%. This method is known as debt settlement.

If you're unable to obtain a debt consolidation loan, then debt settlement may be the right option for you. You can handle the process on your own by doing some research, or you may work with a debt settlement agency that will handle the footwork for you.

By working with an agency, you'll get access to individuals who are familiar with the process and know how to work with creditors to obtain a settlement. However, you will pay a fee for their services. But even with the fee, you can save hundreds—even thousands—by reaching a settlement with the creditor or debt collector.

When should I consider bankruptcy?

Bankruptcy involves wiping out most of your consumer debt, including credit cards, loans, and medical bills. However, certain debts may not be forgiven, such as taxes or student loans.

Bankruptcy should be considered as the debt resolution of last resort because it can affect your ability to obtain future loans, qualify for a job, or purchase a house for several years. Bankruptcy will also stay on your credit report for up to ten years.

Declaring bankruptcy is a highly personal decision that should be discussed with an attorney before proceeding. A qualified bankruptcy attorney can determine whether you qualify for bankruptcy, what debts may be resolved, and how they will affect your current assets and credit report.

Utilize these debt relief programs in Minnesota

Minnesota Supplemental Aid: An income supplement for people who receive federal Supplemental Security Income (SSI) benefits, or who could get SSI if their income was not above the SSI limit. The monthly benefit may also cover special needs payments for people who qualify.
General Assistance: Provides cash assistance for single adults without children who have a serious illness, disability or other issue that limits their ability to work.
MinnesotaCare: A health care program for Minnesotans with low incomes. Enrollees get health care services through a health plan. You can choose your health plan from those serving MinnesotaCare enrollees in your county. This program is funded by a state tax on Minnesota hospitals and health care providers, Basic Health Program funding and enrollment premiums and cost sharing.
Emergency General Assistance: Adults with low incomes and no children in the household who are facing a household emergency may qualify for this cash-grant program.
RentHelpMN: Created to help Minnesota renters who are at risk of losing their housing due to the COVID-19 pandemic and reimburse property owners for missed rent payments.

Are you being sued for debt in Minnesota?

If you're currently being sued for debt in Minnesota, SoloSuit can help. The first step to winning a debt lawsuit is to respond to the Summons and Complaint within the deadline (which is 20 days in Minnesota). You can use SoloSuit's free Answer form to respond to the lawsuit and win in court.

To learn more about how to respond to a Summons for debt collection, check out this video:

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate