What do I get to keep if I file bankruptcy in Minnesota?
It’s probably one of the things you worry about most about when thinking about filing for bankruptcy.
What you can keep if you file bankruptcy in Minnesota depends on:
- Whether you file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy
In Minnesota, there are two schedules of what you get to keep (your exempt property):
- The first schedule is called the U.S. exemptions or the Federal exemptions
- The second is called the Minnesota exemptions, because they are determined by Minnesota state law
Here’s how the Federal and Minnesota bankruptcy exemptions affect you.
You can keep:
1. Your Home
- You can keep your home up to an equity of $390,000
2. Wildcard Exemption
- If you use the US exemptions, you get a Wildcard exemption of up to $13,100 to use on anything you want
- You can even exempt $13,100 in money in the bank
3. Your Car or Truck
- You get your car, truck or motorcycle up to at least an equity of $4,600 under the Minnesota exemptions
- Under the US exemptions you get an equity in your motor vehicle of up to $3,775, but you can use up to $13,100 from your Wildcard exemption
You could conceivably exempt up the $16,875 in equity in a motor vehicle.
4. Retirement plans, 401ks and IRAs.
- You can exempt an unlimited amount in your Retirement plan or 401K under either exemptions
- You can exempt up to $1,283,025 in your normal or Roth IRA
5. Household goods
- You can exempt most household goods, like clothing, furniture, TV set, etc.
6. Social Security or VA benefits
- Your social security or VA benefits are exempt under either set of exemptions
Conclusion
There are many other things that are exempt under either set of exemptions.
So, if you were worried that filing for bankruptcy in Minnesota would mean you would lose everything you own, you should feel much better now.
You can keep much more than you thought.
You definitely need the advice of an experienced Minnesota bankruptcy attorney, but usually, you don’t lose anything if you file bankruptcy.
Contact Us at 612-824-4357, and we will be happy to set up a free consultation to talk about what you get to keep when you file bankruptcy.
