Individuals filing bankruptcy are concerned about the property that they can and cannot keep. There are some cases where an individual is able to keep all of their property and other cases where they lose some.
You may already have an idea of what property you may be able to keep, but you may be wondering what else you can keep. Your Minneapolis bankruptcy attorney will review your assets with you and will be able to advise you of what assets you may or may not be able to keep.
Helping You Choose The Right Exemptions
Part of determining what you can or cannot keep depends on the set of exemptions that you choose. You can choose from state or federal, but you cannot utilize both. In many cases, the state exemptions are better. However, there are a few items in the federal exemptions that are better than the state exemptions, thus provoking clients to choose federal. It simply depends on what is important to the client.
Understanding State Exemptions
The state of Minnesota provides those filing bankruptcy with the following exemptions:
- Homestead exemption of $390,000 or $975,000 for agricultural property. Land cannot exceed ½ acre in the city or 160 acres elsewhere. Manufactured homes can have an unlimited value and spouses cannot double
- Personal property exemption, which includes motor vehicle of $4,600 or $46,000 for modified vehicle for disability. Personal property also includes food, clothing, watches, eating utensils, appliance, TVs, jewelry, and radios up to $10,350. Wedding rings, burial plots, and various other items are exempt up to $2,695.
- Wages may also be affected up to 40 times the federal minimum wage or 75% of the disposable wages, if there are any disposable wages.
- Tax exempt retirement accounts are exempt, IRAs and Roth IRAs up to $1.1 million, and ERISA-qualified benefits up to $69,000. Public and state employees, as well as state trooper pensions are exempt. Public benefits are also exempt, which includes Workers’ Comp, public assistance, veterans’ benefits, etc.
- Tools of the trade are exempt up to $11,500 with teaching materials being exempt up to $13,000.
- Insurance benefits are exempt up to $46,000 plus $11,500 for each dependent. Accident or disability proceeds, as well as fraternity benefit society benefits are exempt. Earnings of a minor child are also exempt.
Upon evaluation of your assets, your Minnesota bankruptcy lawyer will be able to make an accurate assessment of what you may or may not keep and you can weigh the federal exemptions against the state exemptions to determine what is best for you in regards to what you can keep.
Contact A Minneapolis Bankruptcy Lawyer
The state of Minnesota has property exemptions, which determines what a person can and cannot keep when they file bankruptcy. Minnesota is also a state that will allow a person to take advantage of federal exemptions as well, but the debtor can only choose one or the other. To find out which set of exemptions are best for you, call the McKinney Law Office’s Minneapolis office at 612-206-3706 or the St. Paul office at 651-379-4110 for a free consultation.
This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.