Bankruptcy Exemptions Available In Minnesota

In Minnesota debtors can choose between two sets of exemptions. In most cases debtors in Minnesota use the federal exemption system, which allows them to keep most of their property. In some cases people will use the Minnesota exemptions. The main reason to use the Minnesota exemptions is because they may be expecting a large personal injury settlement or have equity in their home.
Recently most of the clients we see use the federal exemptions because they do not have a lot of equity in their home due to the housing market crash. The federal exemptions allows an individual to exempt some equity in a home, and also allows a generous wildcard exemption. Most of our clients will have their assets fully exempted by using the federal system, but in some cases our clients may need to use Minnesota exemptions.
The choice of which exemptions to choose is one that should be looked at by an experienced attorney. The exemptions you choose for your bankruptcy will determine what things you get to keep after filing for bankruptcy. Most of our clients will keep all of their assets after filing for bankruptcy protection. This means they keep their house, cars, clothes, personal goods, and money in bank accounts. In some cases a clients assets will exceed the available exemptions. In most cases the clients will be aware of this possibility in advance of filing for bankruptcy. If you know you will have non exempt assets it is important to make a plan with your bankruptcy attorney, and get an estimate of what is not exempt.