“It’s my money!” – yes, we know that this is a difficult thing to go through. The money that you spend to file a bankruptcy, though, can be among the best investments you’ve ever made in anything. We know that a bankruptcy only tells a small part of the story about your financial history, and we help to mitigate the impact of bankruptcies for our clients.
In the state of Minnesota and many other U.S. states, there’s actually a lot you can do to mitigate your financial situation through bankruptcy. There are multiple bankruptcy paths, some of which allow you to retain more assets. Some assets or income are shielded from bankruptcy collections in specific ways.
Here are some of common exemptions for bankruptcy in Minnesota. Homestead Exemption
In some bankruptcy situations, filers can exempt $450,000 of equity in their homes, or more under certain homestead exemptions. Many states have such exemptions based on a detailed philosophy of residential real estate and the agricultural history of the country.
Professionals looking at the logistics of bankruptcy will review factors such as the person’s equity in the real estate, length of residence or ownership, and more to figure out what’s beneficial from their particular standpoint.
Salary and Benefits
Typically, filers can exempt up to $75,000 in retirement benefits. That might be part of a pension plan or a self-directed IRA. It might be part of a 401(k) agreement with an employer. There may also be an opportunity to exempt up to 75% of wages earned, but not yet paid.
The ability to shield some retirement income is an important part of how bankruptcy law has been written in Minneapolis, Minnesota and elsewhere.
Some amounts of life insurance may be exempted from bankruptcy as well. Again, this is a way to help cover families and beneficiaries from excessive financial stress and impact during a bankruptcy proceeding.
Some types of personal possession exemptions also apply.
For instance, there’s a common benchmark in Minnesota of $5000 for a vehicle exemption, but in some cases, the exempted amount can be much more. One of the best ways to understand the details of this state bankruptcy law process is to sit down with a professional. The team at Moshier Law Office PLLC are skilled and experienced in helping clients to conduct filing for bankruptcy within the state. We know state law and understand the details of bankruptcy processes here. Let us help you to plan for your financial future.