General Review for Minnesota Bankruptcy Law - Bolinske Law
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General Review for Minnesota Bankruptcy Law

General Review for Minnesota Bankruptcy Law

There are many instances where consumers choose to file for Chapter 13. In some cases, Chapter 13 is preferable to Chapter 7. One way a Chapter 13 is preferable is if you are behind on home payments. If you have fallen behind on your mortgage payment and you still want to keep your property, then Chapter 13 may be the best available option for you.

Under Chapter 13 bankruptcy, you can catch up on late house payments over the term of the plan.  The key is house payments due after the plan must be kept current.

For individuals in Minnesota who want to discharge their debt quickly, Chapter 7 might be the best option. Reviewing the benefits of both Chapters, 7 and 13.

Advantages of filing Chapter 7:

  • You’ll get a new beginning in as little as 90 days.
  • All your incomes, wages, and assets you acquire after filling the Chapter will be yours and not the creditors.
  • You will qualify for new credit quickly.
  • You can keep your car and house so long as payments are kept current.

Disadvantages of Filing Chapter 7:

  • Property which is not exempted must be purchased or surrendered to the trustee.
  • People who co-sign on your loans are not discharged and the creditor can collect on them.
  • The time gap between filing Chapter 7 second time after you filed your first, is eight years. You can not fill for Chapter 7 again until eight years.

Advantages of Filling Chapter 13:

  • You choose to keep all your assets, whether exempted or not exempted.
  • You can file Chapter 13 any time you want.
  • Your mortgage arrears can be brought current.  
  • Auto loan arrears may be brought current during the term of the plan.
  • A co debtor is protected during the term of the plan.
  • Most plans only pay a small proportion of the total amount of debt, at the end of the plan the remainder is discharged.

Disadvantages of Filing Chapter 13:

  • The process might take up to 3-5 years to get discharged.
  • You are under a plan that is difficult to modify once confirmed.
  • People with fluctuating incomes have a difficult time with payments under Chapter 13 plans.
  • Some filers have a difficult time budgeting for a Chapter 13 payment.

Here is Minnesota’s Bankruptcy Exemption List:-

Homestead Exemption

  • Exemption up to $420,000 of equity in your home and land.
  • $1,050,000 Exemption if your Land is for agriculture use.

Motor-Vehicle Exemption

  • Up to $4,800 in one vehicle.
  • For modified vehicle up to $3,600 for a disabled person, the exemption can be up to $48,000.


  • Employee benefits up to $72,000
  • Personal property up to $10,800
  • Insurance Benefit up to $46,000 on the death of a spouse of a parent.
  • Insurance Benefit up to $12,000 for each dependent surviving spouse of a child

Before applying for any of the Chapter, do not forget to do in-depth research for the same. Minnesota Bankruptcy law might not be that hard on defaulters and might provide leniency in cases they desire.

Bankruptcy Lawyer in Minnesota are easy to find but they charge you as much as of 30% of your case amount. Michael Bolinske, a founding partner at Bolinske Law, LLC looks into the cases of Bankruptcy.

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