Suppose you filed a Chapter 7 Bankruptcy in Minneapolis, MN. You have a lot of equity in your home so your attorney correctly uses the Minnesota Exemption scheme to protect your assets the best she can. I say the best she can because when using the Minnesota Bankruptcy Exemption scheme, we know not all of your assets will be protected. Why? Because the Minnesota Bankruptcy Exemption scheme is fairly rigid; your assets either fit neatly into a Minnesota Exemption or it does not. There is no “wild card” exemption as there is in the Federal Exemption scheme.
But when using the Minnesota Bankruptcy Exemptions, we know with certainty you will have assets we cannot protect. Like what? Well, for starters, money owed to you in the form of wages on the date you file bankruptcy partially not protected (typically 25% of the wages owed you on the date you filed the bankruptcy is not protected). What else? Typically, a portion of your tax refunds owed to you for the year in which you filed is not protected as are your property tax/rental rebate refunds for the previous year if you have not already received them.
Add to this things like toys (think boats, 4-wheelers, jet skis, etc.) are not protected either. In addition, the equity in vehicles you can protect are capped at about 5k per each debtor. Any equity about this in a vehicle is not protected. In my opinion, the Minnesota Exemption laws are pre-historic protecting things like “phonographs” and failing to protect things like I-pads. The Minnesota legislature needs to update the exemptions to reflect like in the 21st century. LifeBack Law Firm is working on doing getting our bankruptcy exemption laws updated.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready to get your life back and file Chapter 7 Bankruptcy in Minneapolis, MN, reach out to LifeBack Law Firm by going now to www.lifebacklaw.com. You will be so thankful you did.
