05 Apr What Property Will I Lose in a Minnesota Bankruptcy?
Loss of personal property including: cars, houses, jewelry, and possessions, is one of the biggest fears individuals have. Many times the fear will keep individuals from filing bankruptcy when they should.
Your chance of losing any personal property in bankruptcy is rare. The bankruptcy code provides for an election of two types of exemptions in a Minnesota bankruptcy. Exemptions are what allow an individual to keep items as part of a fresh start. An example is driving a 2005 Honda Civic that is paid off. If the Honda Civic has a value of less than $3,450 the car will not count against you and nothing will be paid. Even if the car does have value over the exemption amount a “wildcard” may be used as a gap filler to make up the difference between the value of the car and vehicle exemption.
Essentially there is an exemption for all different classes of asset under 11 U.S.C. 522. Obviously exemptions are finite but most bankruptcy filer do not lose any assets and pay nothing into a chapter 7 bankruptcy.
Some examples of exemptions under 11 U.S.C. 522 are
1. Household goods and furnishings: $11,525;
2. Jewelry: $1450;
3. Certain Retirement Accounts: $1,000,000
4. Personal Injury Payments: $21,625;
5. One Motor Vehicle: $3,450; and
6. Wildcard (gap filler): $11,975.
These amounts can change and these amounts are not all the exemptions that are available. Contact us today to determine how we can discharge your debt and protect your property.