What is the homestead exemption amount in Minnesota?

While a person is filing for bankruptcy in Minnesota, the debtor may claim their homestead as an exemption. This means that the house that is occupied by the debtor and the debtor's family and the land where the house is situated will be protected from seizure or sale.

The value of the homestead must be $390,000 or less, and the land the homestead is situated on cannot exceed 160 acres. If a person owns a homestead that is used mostly for agricultural purposes, the value could be up to $975,000. These bankruptcy exemptions do not change if there is more than one debtor living in the property. During the course of the debtor's bankruptcy period, the value of the homestead might be subject to change.

If two spouses both file for bankruptcy at the same time, one spouse may claim the house as an exemption while the other spouse claims the land as an exemption. The exemption of a homestead is not affected by the debtor's death or desertion. When the debtor dies, their surviving family members will be able to keep the homestead, and the homestead will still be exempt from seizure. If the debtor abandons the homestead, the debtor's spouse and children will similarly retain the homestead, but they will not be able to sell it.

An attorney may be able to help an individual to achieve the most benefit from bankruptcy protection by maximizing their exemptions. A person who is able to remain in their home and keep some of their valuable assets may have a better chance of emerging from bankruptcy in good financial health. Because every situation is different, the information presented here is not equal to personalized legal counsel.

Source: The Office of the Revisor of Statutes, "Chapter 510. Homestead Exemption", October 21, 2014

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