Asset protection issues are constantly shifting in bankruptcy law, with many details and exceptions and pitfalls for the inexperienced. No one should use this information to plan their own case.  All assets must be disclosed when filing bankruptcy.

Most clients lose no property when filing Chapter 7 or  Chapter 13 bankruptcy.  This is because the law provides exemptions which are used to protect assets. Exemptions are categories of properties, up to certain dollar amounts in each category, that are sheltered.

Minnesota residents are fortunate because, under certain circumstances,  our state allows a client to choose between exemptions provided under federal law or exemptions provided under state law. Each set of exemptions has their own advantages and disadvantages. The following generally describes available exemptions, and is just a partial list of a few of the most frequently used exemptions:

FEDERAL EXEMPTIONS:
Homestead equity: $18450.00 per person, $36900.00 for a married couple.
Motor Vehicle Equity: $2950.00 per debtor in any one vehicle.
Household Goods and Furnishings: $9850.00 per person.
Personal injury unsettled claim: $18450.00 per person
in any one claim.
Retirement plans: ERISA qualified 401(k), 403(b), IRAs, and most pensions are protected.
Tools of Trade: $1850.00.
Wildcard: $975.00 of any property plus up to $9280.00 of amount of unused homestead exemption may be used to protect any asset.

MINNESOTA EXEMPTIONS:
Homestead equity: Up to $200,000.00 depending on size of lot and location of property, and length of residency in Minnesota.
Motor Vehicle Equity: $3800.00 per person in any one vehicle.
Household Goods and Furnishings: $8100.00 per person.
Personal injury unsettled claim: Potentially unlimited except for certain types of damages.
Retirement plans: ERISA qualified 401(k), 403(b), IRAs, and most pensions are protected.
Tools of Trade: $9000.00.
Wildcard: None.

Most clients lose no property when filing Chapter 7 or 
Chapter 13
bankruptcy.