Homestead Exemption and Different Situations in Bankruptcy

Posted by Col Ovik on August 18, 2022 at 7:30 AM
Col Ovik

shutterstock_2038323362In Minnesota, the creation of a statutory exemption from claims of creditors for real estate used as a homestead is authorized by Article I, Sec. 12 of the State Constitution.  Minn. Stat. Chap. 510 sets forth the homestead exemption. It begins with a definition that reads, in pertinent part: 

The house owned and occupied by a debtor as the debtor's dwelling place, together with the land upon which it is situated to the amount of area and value hereinafter limited and defined, shall constitute the homestead of such debtor and the debtor's family, and be exempt from seizure or sale under legal process on account of any debt not lawfully charged thereon in writing, except such as are incurred for work or materials furnished in the construction, repair, or improvement of such homestead, or for services performed by laborers or servants and as is provided in section 550.175.

Minnesota court have long held that exemption statutes should be liberally construed in favor of debtors. This statement seems cut and dry: occupy your home, and your home and the land around your home will be exempt.  But, debtors do not always have a cut and dry situations. What about situations where the debtor owns the home, but not the land upon which it is situated, or what about a debtor who owns the land, but lives in a camper on the property with no permanent structures-will that land and camper be allowed to be exempted by the Minnesota homestead exemption. 

The use of the Minnesota homestead exemption may come down to the actual facts of the individual case. Given the homestead statute's liberal construction, debtors in many unique situations may be able to make a valid argument for the use of the Minnesota exemption in their case. 


The law is undoubtedly settled in that one who purchases a tract of land, and occupies such land may claim a homestead interest and exempt such a tract of land. But unique situations may require further analysis. Contact the attorneys at LifeBackLaw and see us at and let us help you get your life back.

Topics: bankruptcy payments

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