Bankruptcy Exemptions in Minnesota
Protecting Your Property during Bankruptcy
When you file for Chapter 7 or
Chapter 13 bankruptcy, your creditors will be allowed to make a claim against your personal property and financial assets, to recover as much of the money you owe as possible. Any eligible items will be liquidated by the bankruptcy trustee assigned to your case, who will also be responsible for supervising a fair distribution of the funds to your creditors. This arrangement protects banks and other lenders from the fraudulent actions of some borrowers who might otherwise abuse the legal shelter of bankruptcy.
If you are struggling under the burden of debt, it is important to know that certain amounts of your personal property will be protected during bankruptcy. Both the Federal government and Minnesota state law provide exemptions which make it more possible for those who truly need to file for bankruptcy to enjoy the benefits of doing so. Some of the exemptions which most commonly affect debtors in our state include maximum amounts up to:
- $300,000 for a homestead
- $20,200 for a house
- $1,350 for jewelry
- $3,225 for vehicle
- $10,775 for household goods, including furniture and appliances
Any items covered by an exemption are beyond the reach of a creditor, meaning that bankruptcy will not cost you everything you own. While you may have to give up a portion of your total assets, you will not be left with nothing when you make a new start financially. A skilled Minnesota bankruptcy attorney can work with you to explore the entire list of state and Federal exemptions, to help you take full advantage of this legal protection.
Bankruptcy Attorney In Minnesota
Heimerl & Lammers has extensive experience with bankruptcy law, and we have assisted many individuals and families who needed relief from their financial burdens. Bankruptcy will have a major impact on your life, and before you take any action, you should meet with one of our attorneys to ensure that you are prepared to take full advantage of the opportunity. We will investigate your case in detail to help you apply for every exemption that could benefit you when you file.
Contact a Minnesota bankruptcy attorney to learn more about exemptions that could protect your property from the claims of creditors.