MINNEAPOLIS JOINT BANKRUPTCY EXEMPTIONS
Residents of Minnesota may access title 11, section 522 (d) of the United States Code. Minnesota bankruptcy filers can also use the exemptions provided by Minn. Stat. SS 550.37. When filing a bankruptcy together, the debtors may elect to use either the applicable exemption provisions pursuant to Minnesota law or pursuant to subsection (d) of section 522 of the Bankruptcy Act, United States Code, title 11, section 522(d) (federal exemptions), but not both. When filing jointly, debtors can elect to use either the Minnesota exemption provisions or the subsection (d), section 522 of Bankruptcy Act of United States Code, Title 11, section 522 (federal exemptions), not both. The statute prevents married couples from splitting exemption schemes by requiring them to file the same exemptions in the 3 years following the filing of the first spouse’s case. Federal exemptions provide for a significant “wildcard” exception. This exemption can be used for assets that are not normally exempt, such as motorcycles, boats and campers. Federal exemptions, however, may not protect your home fully if you are a bankruptcy filer with equity. The State exemptions don’t have a significant wildcard exemption so filers could have non-exempt property in their case. The appeal for married couples to claim both exemptions, to get the most benefit out of the two exemption schemes, on two separate filings may be tempting, but it is not allowed.
Persons are considered to be married if they are married to each other at the time of the filing of the first individual filer.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Bankruptcy filers in the state of Minnesota have the option to choose their exemption scheme, but the filing of one spouse can affect the later exemption scheme of the other spouse. Contact the attorneys at LifeBackLaw and see us at
www.LifeBackLaw.com
