Exemptions modification for garnishment and bankruptcy

SF 1606 creates a new $1,000 exemption for funds in bank accounts during garnishment proceedings. It modifies Minnesota law to protect up to $1,000 in any debtor's depository accounts (regardless of source), requiring financial institutions to leave this amount untouched during garnishment. The exemption applies to all account holders, cannot be combined with another specific exemption (subdivision 28), and takes effect for cases filed on or after August 1, 2025. This change directly affects individuals facing debt collection efforts who hold money in bank accounts.