Asset Protection in the Bankruptcy Process
Bankruptcy has always been intended to provide meaningful debt relief to people and businesses that need it and give them a "fresh start."
Because of that, and because taking away everything you own in order to pay your creditors as much as possible would absolutely defeat this purpose — the Bankruptcy Code has built in protections that allow debtors to keep most, if not all of their assets.
At Prescott & Pearson, P.A., our attorneys have handled over 70,000 bankruptcy cases in Minnesota. This is all we do, in fact, and it's something we've been doing well for more than 35 years. To learn more about asset protection in bankruptcy or to schedule a free consultation, call or contact our Twin Cities area law offices today.
Property Exemptions
Minnesota is one of the 16 states that allow debtors to choose between exemptions under federal or state law (prior to the new bankruptcy laws of October 2005, exemptions were based on state law only).
Here's a partial listing of major exemption limits in Minnesota:
- $300,000 for your home ($750,000 if agricultural)
- $8,550 in household furniture
- $13,000 in farm machines and implements used in farming operations)
- $10,000 in tools of your trade (this and the farm exemption above cannot exceed $13,000)
- $4,000 for your car ($40,000 if modified for disability)
- $57,000 in employee benefits
- $57,000 in retirement benefits (Most pension are entirely protected even if over these limits)
Although exemptions are a complicated area of bankruptcy law, proper asset protection planning done with the guidance of an experienced bankruptcy attorney will put you in the strongest position to recover from the temporary setback known as bankruptcy.
"This Is All We Do and We Do It Well."
Minneapolis-St. Paul: 651-968-8096 / Statewide Toll-Free: 888-366-0827
For answers to any other questions about Chapter 7 or Chapter 13 bankruptcies, or about your specific situation and concerns — don't hesitate to call or contact our lawyers in the Twin Cities area for a free consultation.
