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Bankruptcy Exemptions
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Certain assets will survive the filing of your bankruptcy.  In other words, you will be able to keep certain assets even if you have to go through bankruptcy.  There are federal exemptions and each state has their own exemption laws.  You can choose either the state exemptions or the federal exemptions but you cannot choose both and you cannot mix and match.  The following chart lists the possible exemptions available to you if you file bankruptcy in Minnesota.  Determining what exemptions apply to your situations can be extremely confusing.  Whether an exemption applies does not end the discussion becuase you may have to reaffirm or redeem a debt in order to keep an asset or you may decide you are better off letting the asset go.  The best way to make sense of the confusion and to make the right decisions is to sit down with a bankruptcy attorney who will actually go through your assets and debts and help you make the right decisions.  To schedule an appointment, please click the link below.

Homestead Exemption
For a non-agricultural homestead not to exceed 1/2 acre: $300,000.00 
For agricultural homestead not to exceed 170 acres:   $750,000.00 

Vehicle Exemptions
Automobile any/or truck equity:  $4,200.00
Automobile and/or truck equity if outfitted for a disability:  $42,000.00 

Retirement & Pension Savings
 Federal bankruptcy law provides an exemption for most tax exempt retirement savings accounts and pensions from bankruptcy even if you elect the state exemptions. 


If possible please complete the financial information form and e-mail it to us before your appointment.

FINANCIAL INFORMATION FORM

Personal Property Exemptions
This exemption is for your personal property.  There are numerous exemptions for different types of personal property with caps as to how much can be exempted for each category.  You also have to remember that even if the item is exempt you cannot ignor any debt that is secured by that item.  For example, if you own a car that is worth $20,000.00 and have a car loan of $17,000.00 the car is exempt; however, if the loan secured by the car still remains and has to be dealt with in the bankruptcy.  Ultimately, you will have to either use "reaffirmation" or "redemption" if you want to save the car from the lender.    

Insurance Exemptions
There are different exemptions for different types of insurance proceeds and policies and all are subject to caps. 

Tools Of Trade Exemptions
Tools of trade for farms:  $13,000.00
Tools of trade for business:  $10,500.00
If you combine farm and business:  $13,000.00 


Wage Garnishment Exemptions
With certain exceptions, all earnings not subject to garnishment are exempt (75% of debtors desposable earnings) 

Public Benefits Exemptions
Many public benefits are exempt although caps may apply. 

Social Security Exemptions
 All public benefits including Social Security benefits are exempt if the benefit is based on need.
 


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NOTICE:

The foregoing is not intended to constitute legal advice for any specific circumstance, but is intended to reflect broadly applicable principles, under Minnesota law, relevant to a typical situation. Each set of facts and each contract is, or can be unique; the unique facts and specific language of the contract may require a different legal analysis and may result in a different outcome. Before proceeding in reliance upon this or any other general description of law, consult with an attorney competent in the field of practice relevant to your situation.

 

Copyright 2010 Nash Law Firm

This Bankruptcy Law Firm is a federally designated DEBT RELIEF AGENCY as defined in the 2005 amendments to the US Bankruptcy Code. This law firm provides legal advice regarding the pros and cons of filing bankruptcy and represents people and small businesses in filing for bankruptcy relief under the US Bankruptcy Code. Debt Relief Agency Notice

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