New exemption limits have come into effect in the state of Minnesota effective July 1, 2010. These will apply in bankruptcy cases where the debtor elects to use the state exemptions rather than the ones found in the Federal Bankruptcy Code (which were also raised this past April 1, 21010). Which exemption scheme to use will be determined by your attorney as that which gives you the most benefit depending on your individual circumstances. Usually we will chose the state exemptions over the Federal ones where there is a great deal of homestead equity as the Federal exemption is only $21,625 or $43,250 in a joint case. However considering the state of the real estate market these days it is a problem we don’t see too much any longer. Other issues might be a potential personal injury claim which can be protected under the state exemptions to a much larger degree, etc.
Homestead is now $360,000.00 (unless primarily used for agricultural purposes then it is $900K.)
Motor vehicles are exempt in value up to $4,400.00
Wedding Rings are exempt to the tune of $2,695.00—before last year they weren’t exempt at all!
Personal goods (home furnishings, clothing, etc.) is now at $9,900.00 per person.
There have been raises in others as well but these are the ones of most common concern.
For more information on how bankruptcy either chapter 7 or chapter 13 can impact your property please visit our website which is located at http://www.kingsburylawoffice.com/ or feel free to call our office at (952) 432-4388.