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Last Updated: 7/26/2017

Continuous Levy

We can issue a continuous levy to a third party requiring them to send regular payments for your  unpaid debt. If you are a business, we demand 100 percent of the funds owed to you from the third party. If you are an individual, we are limited to up to 25 percent of each payment. We may take 100 percent of rent payments owed to you.

We can issue continuous levies if you are an independent contractor receiving 1099 non-employee compensation rather than W-2 wages. We can also levy if you receive dividends, rents, royalties, trust distributions, contract payments, or any other type of periodic payments. (See Minnesota Statutes, section 270C.68.)

We can hold a third party liable for your  unpaid debt and add a 25 percent penalty if the they do not cooperate or comply with the levy.

 

Disclosure Form

The third party must send the funds and the Continuous Levy Disclosure form within 10 days of receiving the notice. The form incudes the: 

• Total amount owed by you

• If you are a(n):

     o individual, 25 percent of the amount owed to you

     o business or your income is rent, 100% of the amount owed to you. 

• Amount of other levies, setoffs, or adverse interest along with an explanation

• Date and amount of payment

• Frequency of payments

• Reason why no payment is owed to you (if applicable)

• Name, phone, and fax numbers of the person completing the form

 

Exemption Claim

We send a Continuous Levy Notification and Exemption Claim Form to you when we issue a continuous levy. We may not issue a levy against you if an Exemption Claim Form shows a valid exemption. The exemption applies only to wage levies and continuous levies issued for non-employee compensation.

The most common types of continuous levy exemptions are listed on the form; however, it is not an exhaustive list. (See Minnesota Statutes, section 550.37.)

We are not allowed to issue a continuous levy if we know  you qualify for an exemption. If we discover you are exempt, we must release the levy already issued.

 

Levy Reduction

Once a levy is issued, you cannot enter into a payment agreement to stop the levy. We will accept voluntary payments to reduce the length of time it takes to pay the debt, but we will not stop the levy. Your levy payments may be reduced if the current amount causes a significant financial hardship.

 

New Debts

If a new debt is added after a levy is issued, we do not include it on the existing levy. We must serve due process on the new debt while the current levy continues. When the levy is paid in full, we may issue a levy for the new debt.

 

Levy Release

We will release a levy when: 

• you are exempt

• the debt is paid in full

• when an adverse interest or setoff  prevents a payment

• you file bankruptcy