Sarah Edwards | October 19, 2022
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.
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:
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).
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
Deadline in Years
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.
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.
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.
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.
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:
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.
"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
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.