The Minnesota bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Minnesota. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
In Minnesota, you also have the choice of using the federal exemption statutes instead of your Minnesota exemptions.
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Minnesota you may also use certain federal exemptions in addition to your Minnesota exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
Homestead | Real property, mobile home or manufactured home to $200,000 or, if the homestead is used primarily for agricultural purposes, $500,000; cannot exceed ½ acre in city or 160 acres elsewhere | 510.01, 510.02, 550.37 subd. 12
|
Insurance | Accident or disability proceeds | 550.39 |
| Fraternal benefit society benefits | 64B.18 | |
| Life insurance proceeds if beneficiary is spouse or child of insured to $32,000, plus $8000 per dependent | 550.37 subd. 10 | |
| Police, fire or beneficiary association benefits | 550.37 subd. 11 | |
| Unmatured life insurance contract dividends, interest or loan value to $6400 if insured is debtor or someone debtor depends on | 550.37 subd. 23 | |
Miscellaneous | Earnings of minor child | 550.37 subd. 15 |
| Property of business partnership | 323.24 | |
Pension | ERISA-qualified benefits needed for support, which do not exceed $48,000 in present value IRAs needed for support, which do not exceed $48,000 in present value Private retirement benefits (only benefits building up) Public employees State employees State troopers | 550.37 subd. 24 550. 37 subd. 24 181B.16 353.15 352.96 352B.071 |
Personal property | Appliances, furniture, radio, phonographs & TV to $7200 value | 550.37 subd. (4)(b) |
| Bible, books & musical instruments | 550.37 subd. 2 | |
| Burial plot; church pew or seat | 550.37 subd. 3 | |
| Clothing (includes watch), food & utensils | 550.37 subd. 4(a) | |
| Motor vehicle to $3200 (up to $32,000 if vehicle has been modified for disability) | 550.37 subd. 12(a) | |
| Personal injury recoveries | 550.37 subd. 22 | |
| Proceeds for damaged exempt property | 550.37 subds. 9, 16 | |
| Wrongful death recoveries | 550.37 subd. 22 | |
Public benefits | AFDC, supplemental assistance, general assistance, SSI/SSA | 550.37 subd. 14 |
| Crime victims compensation | 611A.60 | |
| Unemployment compensation | 268.17 subd. 2 | |
| Veterans’ benefits | 550.38 | |
Workers’ compensation | 176.175 | |
Tools of trade total tools of trade (except teaching materials) can’t exceed $13000 | Farm machines, implements, livestock, farm produce & crops of farmers to $13,000 total | 550.37 subd. 5 |
| Teaching materials (including books, chemical apparatus) of public school teacher | 550.37 subd. 8 | |
| Tools implements, machines, instruments, furniture, stock in trade & library to $8000 total | 550.37 subd. 6 | |
Wages | Earned but unpaid wages, paid within 6 months of returning to work if debtor received welfare in the past | 550.37 subd. 5 |
| Minimum 75% of earned but unpaid wages | 571.922 | |
| Wages deposited into bank accounts for 20 days after depositing | 550.37 subd. 13 | |
| Wages of released inmates paid within 6 months of release | 550.37 subd. 14 | |
| All Earnings not subject to garnishment restrictions | 550.37 subd. 13 | |
WILD CARD | NONE |
|
For more information on filing bankruptcy in Minnesota explore Minnesota Bankruptcy Law.
