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Exemptions are those assets that are not subject to being liquidated in a bankruptcy. In the words of the Administrative Office of the U.S. Courts, exemptions consist of "Property that a debtor is allowed to retain, free from the claims of creditors who do not have liens on the property." Federal exemptions and Minnesota bankruptcy exemptions are similar but differ in detail.
What Are Exemptions in Minnesota? For Your Information, Keep Reading or Contact Us
The following lists of exemptions are provided here for general informational purposes only and are not necessarily up to date, precise or all-inclusive. To discuss whether you should use federal or state bankruptcy exemptions and what exemptions are relevant to your situation, contact an experienced bankruptcy attorney. Prescott & Pearson, P.A., welcomes your inquiry. We will gladly help you determine your exemptions for the purpose of a Minnesota bankruptcy filing.
Federal Exemptions
In general, federal bankruptcy exemptions include: real estate (homestead) up to $21,625; life insurance cash value $11,525, child support, alimony, pensions, 401(k) savings accounts and IRAs; a motor vehicle valued up to $3,400; household goods up to $11,525 in value; jewelry up to $1,450 in value; wrongful death lawsuit proceeds for the death of someone on whom you depended financially; personal injury proceeds up to $21,625; compensation for lost earnings; public benefits such as Social Security or welfare; tools of your trade up to $2,175 in value, and up to $11,957 of the unused homestead exemption for any property.
Minnesota Exemptions
In general, Minnesota bankruptcy exemptions include: real estate (homestead) up to $360,000 in value and up to 160 acres; most personal injury accident insurance proceeds; pensions, 401(k) savings accounts and IRAs; personal property up to $9,900 in value; a motor vehicle valued up to $4,000 or $44,000 if modified for disability; public benefits; tools of your trade up to $11,000 in value; some wages, life insurance cash value $8,800, and up to $44,000 of life insurance proceeds paid to a surviving spouse.
What Happens to Non-Exempt Assets?
The bankruptcy trustee can liquidate (sell to pay to creditors) any assets that you own above and beyond the allowable assets according to law. In our law practice, most of our clients are able to keep most or all of their possessions by claiming these exemptions when filing Chapter 7 or Chapter 13 bankruptcy.
Minnesota Bankruptcy Exemption Attorney
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To learn more about exemptions and bankruptcy, call or contact our bankruptcy lawyers today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.
