Minnesota allows individuals who file for bankruptcy to keep certain assets. Retaining these assets, known as exemptions, allows you to rebuild your finances after a bankruptcy.
If you have been struggling with debt you cannot afford to pay, review the rules about bankruptcy exemptions in Minnesota.
Personal assets
You can keep up to $450,000 in equity in your primary residence. If you use your land to farm, this exemption rises to $1.125 million.
You can also retain a vehicle worth up to $5,000 in equity. If you or a family member has a disability, you can claim a $3,750 exemption for vehicle modification.
The state also allows you to keep up a wedding ring worth up to $3,062.50, business tools worth up to $12,500 and up to $11,250 in miscellaneous assets. Additional exemptions include musical instruments, the family Bible, burial plots, farm machinery worth up to $13,000, and textbooks used for college or university study.
Income and benefits
In addition to personal property, if you file bankruptcy you can keep:
- Up to $75,000 in employee benefits
- Up to $10,000 in accrued interest earnings
- Up to $50,000 in insurance benefits and up to $12,500 in benefits for one dependent
- Public assistance benefits
- Qualifying pensions and retirement funds
- Income earned by a minor child
- Medical and health savings accounts
Assets exceeding these exemption amounts are subject to seizure by the bankruptcy court to repay creditors. If you and your spouse file bankruptcy jointly, you can double these figures.