Minnesota State Bankruptcy Laws

What Are The Minnesota Bankruptcy Exemptions?

MinnesotaMinnesota law protects all or a portion of your property from being seized by creditors or the bankruptcy trustee in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, you are generally allowed to keep all of your assets and property. Certain exceptions may apply, so it’s wise to consult with a Minnesota bankruptcy attorney to find which of your assets will be protected in a bankruptcy filed in Minnesota. In general, the major Minnesota bankruptcy exemptions include:

Real Estate (the Homestead Exemption)
Up to $200,000 of equity in your homestead can be protected. ($500,000 if the homestead is used primarily for agricultural purposes).A provision in the new bankruptcy law caps the homestead exemption at $125,000 if you have not lived in the state for at least 40 months prior to the time you file a bankruptcy petition. In some situations, the cap may be permanent. You should consult with a Minnesota bankruptcy attorney for specific information.
One motor vehicle not exceeding $2,000; or one motor vehicle not exceeding $20,000 that has been modified, at a cost of not less than $1,500, to accommodate a physical disability.
Other Property
Bible and musical instruments; pew and burial lot; all clothing and one watch; utensils and food; and household appliances, phonographs, radio and television receivers of the debtor and the debtor’s family, not exceeding $4,500 in value.In Minnesota, you have the choice of electing the federal exemption statutes rather than the Minnesota state exemptions. Consult with a Minnesota bankruptcy attorney for more details.
View the complete list of Minnesota bankruptcy exemptions

Please remember that this page provides general information only, and is not intended to provide legal advice. The information is not a substitute for the advice of a qualified bankruptcy attorney. If you need legal assistance, consult an attorney.

Which state’s exemption laws apply in your bankruptcy?

MinnesotaGenerally, the laws of the state in which you lived for the 730 days (2 years) prior to filing a bankruptcy petition will apply in your bankruptcy.

If you have not lived in the same state for the 2 years immediately prior to filing your bankruptcy petition, the laws of the state in which you lived for the majority of the 180-day period preceding the 2-year period will likely apply.

If application of the preceding general rules renders you ineligible for exemptions under any state’s laws, you may be allowed to choose the federal exemptions applicable in your bankruptcy.

Is Minnesota a Community Property State?

No, Minnesota is not a community property state. Because it is not a community property state, you will be responsible for your spouse’s debts only if you voluntarily assumed those debts by, for example, co-signing on a loan given to your spouse. In a non-community property state, one spouse can file for bankruptcy and be eligible to eliminate all of their unsecured debts without the involvement of the other spouse.

How did your senator vote on the new bankruptcy laws?

Following years of intense lobbying by creditors, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). How did your Senators vote on these largely pro-creditor provisions?

Coleman (R-MN) — YEA 
Dayton (D-MN) — YEA

Minnesota Bankruptcy Court Locations:

416 U.S. Courthouse
515 West First Street
Duluth, Minnesota 55802
(218) 529-3600

204 U.S. Courthouse
118 South Mill Street
Fergus Falls, Minnesota 56537
(218) 739-4671

301 U.S. Courthouse
300 South Fourth Street
Minneapolis, Minnesota 55415

Note: You may not have to actually go to one of the above bankruptcy courts. Trustees often conduct your meeting at a local venue.

Although bankruptcy is federal law, the bankruptcy courts in each jurisdiction have local rules that must be followed. A local bankruptcy attorney will be familiar with the specific rules in your area.

Minnesota Bankruptcy Attorney Locations:

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Natalie Conatser

Author: Natalie Conatser

Natalie is a finance professor who writes all about finance as a blog contributor. She is a board certified accountant and also knows a thing or two about debt and avoiding bankruptcy. Natalie plans on touring the US to speak about personal finance.

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