The Minnesota Department of Revenue may suspend the collection of debts if a debtor demonstrates an inability to pay. The collection debts of active businesses cannot be suspended.
Suspensions are made for a specified period of time. Debtor’s may demonstrate their inability to pay by explaining their circumstances, completing
Form C58P, Personal Financial Statement and providing documentation to support the request.
If the debtor has not contacted the department to pay the debt in full or setup a
payment agreement by the time the suspension period expires, the collection process will continue.
When the department suspends collections on a case, a
lien may be filed.
School Debt Deferments
If a school debtor cannot pay because of
financial hardship, the debtor may qualify for a deferment. The debtor must apply for deferment directly with the school. If the school grants the debtor a deferment, they will recall the debt from the department.
