What Exemptions Should I Use in Minnesota?

Posted by Amanda Scharber on February 8, 2022 at 7:30 AM
Amanda Scharber

shutterstock_1170246043There are two sets of exemptions you can use in Minnesota, state and federal exemptions. You can use whichever is the most beneficial to you. Below are a few examples of why you may pick one over the other.

Although there are quite a few reasons you may use the Minnesota exemptions, a majority of clients will use them because of their home equity. Under Minnesota’s exemptions you can protect up to $420,000 in equity in your home or up to $1,050,000 for agriculture homestead. Under federal exemptions you can only protect $25,150 with the homestead exemption. Therefore, if you have a home with equity of more than $25,150 (or $50,300 if you are married), then you would want to consider using the Minnesota state exemptions

The federal exemptions, unlike Minnesota, have a wild card exemption. This amount is $1,325 plus the unused homestead exemption of up to $12,575, meaning in total you could have $13,900 to use. The wild card exemption can be used on any asset. An example, say you have $5,000 in your bank account and $5,500 left of your wild card exemption. You could use the wild card exemption to protect the $5,000. Under Minnesota’s exemptions, the money in your bank account is protected if it was deposited from wages 20 days prior and only up to 75%. Another example, say you have used your vehicle exemption of $4,000, but you still have equity in your vehicle above that amount. You can use what is left of your wild card exemption to protect the leftover equity above the vehicle exemption. The wild card exemption can be used with other exemptions. 


Your attorney will go through the exemptions with you prior to filing to help you determine which set is in your best interest. For more information on the bankruptcy exemptions, both state and federal, visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!


Topics: Filing Bankruptcy, MN Bankruptcy Exemptions, Bankruptcy Exemptions

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