Schedules A/B of the bankruptcy petition requires the debtor to list and describe all real estate that the debtor has an interest in. This includes: life estates, remainderman interests, interests in mineral rights, and partial interests in real estate.
Bankruptcy Petition in Minnesota
The petition requires the disclosure of the address of the property, type property, owners of the property, and the current valuation of the property. (Note: you will be asked to provide the current fair market value of the property and may be asked to provide information on the valuation method). And it is important to provide an accurate legal description of the property-if an accurate legal description is not provided this may be an issue if and when the property is transferred in the future.
Exemptions in Minnesota
Protecting the homestead in a bankruptcy requires the use of exemptions. Exemptions allow the debtor to remove an asset from the bankruptcy estate. The homestead exemption is based on the value of the equity in the home. While the homestead exemption for the federal exemptions limits the homestead protection to $25,150 (doubled for joint filers). For a debtor with a large amount of equity in his home he would use Minnesota exemptions, which allows a debtor to exemption up to $450,000 in equity in a homestead.
Minnesota Homestead Exemption
The homestead may include any quantity of land not exceeding 160 acres. The exemption per homestead, whether the exemption is claimed by one or more debtors, may not exceed $450,000.
The Minnesota homestead exemption is permitted per homestead not by individual filer as is allowed in the Federal exemptions. The Minnesota homestead exemption allows the filing individual to claim the full amount of the allowable Minnesota homestead exemption.
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All interests in real estate must be disclosed on the bankruptcy petition. Both Federal and Minnesota exemptions have homestead exemptions that allow for the equity in the home to be protected in the bankruptcy, however, there are limits to both exemptions. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com. You will be glad you did!