Minnesota Bankruptcy Exemptions

The State of Minnesota allows state residents to choose the federal exemption allowances or the state exemption allowances. This creates a choice for the debtor between the most beneficial exemptions per their own case. The best way to determine which exemptions to utilize is to meet with a qualified and proven bankruptcy attorney who can evaluate your individual case and guide you through the process.

There is certain property that is exempt or excluded that the debtor can keep. Based upon your personal situation, personal income and state laws, property and assets exemptions are determined.

In the case of suspected fraud, the Minnesota constitution permits courts to cap exemptions that would otherwise be unlimited.

Assets

Homestead: Manufactured home to an unlimited value, Home and land on which it is situated to $200,000, If homestead is used for agriculture purposes, $500,000, Cannot exceed 1/2 acre in city; 160 acres elsewhere (may not be doubled for husband and wife)

Pensions: Traditional and ROTH IRAs to $1,095,000 per person, Tax-exempt retirement accounts, including 401(k)s, 403(b)s, SEP and SIMPLE IRAs, defined benefit plans and profit sharing and money purchase plans. ERISA qualified benefits or needed for support, up to $57,000, Public employees, State employees, State troopers, IRAs or ROTH IRAs needed for support, up to $57,000 in present value

Insurance: Un-matured life insurance contract dividends, interest or loan value to $7,600 if insured is debtor or person debtor depends upon for support, Life insurance proceeds to $38,000, if beneficiary is spouse or child of insured, plus $9,500 per dependent, Fraternal benefit society benefits, Disability or accident proceeds, Fire, police or beneficiary association benefits

Miscellaneous: Earnings of minor child

Personal Property: Wrongful death recoveries, Personal injury recoveries, Proceeds for damaged exempt property, Appliances, jewelry, phonographs, radio, furniture and TV to $8,550 total, Clothing, one watch, food and utensils for each family member, Bible and books, Burial plot, Church pew or seat, Motor vehicle to $3,800, if modified for disability, up to $38,000, Wedding rings to $1,225

Public Benefits: Workers’ compensation, Crime victims’ compensation, Public benefits, veterans’ benefits, Unemployment compensation

Wages: Wages deposited into bank accounts for 20 days after depositing, Minimum 75% of weekly disposable earnings or 40 times federal minimum hourly wage, whichever is greater, Wages, paid within 6 months of returning to work, after receiving welfare or after incarceration; includes earnings deposited in a financial institution in the last 60 days

Tools of Trade: Tools, machines, instruments, furniture, library and stock in trade to $9,500 total, Farm machines, livestock, produce, implements and crops, Teaching materials of university, college, public school or public institution teacher

Wildcard: None/p>

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