In this discussion, I am going to focus on Minn. Stat. § 550.37, subd. 12 and 12a, referencing how bankruptcy can affect manufactured homes and vehicles in Minnesota.
I am going to skip over subdivision 11, which covers “beneficiary associations” because this law was found unconstitutional. See the court decision, In re Tveten, 402 N.W.2d 551 (Minn. 1987).
Protecting Your Manufactured Home in MN
Under Minn. Stat. § 550.37, subd. 12, a manufactured home, which is defined as “a structure, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems…” and is actually inhabited as a home by the debtor, will be exempt from your creditors. In other words, if your home meets the requirements above and you live there, then it’s fully protected.
Protecting Your Vehicle in Minnesota
Under Minn. Stat. § 550.37, subd. 12a, you can only protect one vehicle that is worth up to $5,000. Or, one vehicle that has been modified to accommodate a physical disability for a disabled person that is worth up to $50,000. So, let’s say you have two vehicles that you own free and clear, but one vehicle is worth $4,000 and the other vehicle is worth $1,000. In this scenario, you can only protect one vehicle fully, and the other vehicle would either have to be surrendered to the bankruptcy estate, or you would pay $1,000 to keep it.
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There are numerous situations involving vehicles and different possibilities, so, if you’re thinking of filing for bankruptcy, and or if you have questions or are ready to get your life back, reach out to Minnesota’s nicest bankruptcy law firm by going to www.lifebacklaw.com. You won’t regret it!
