Bankruptcy Exemptions in Minnesota
What property you can keep in bankruptcy in Minnesota: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Filers may choose either Minnesota's exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d). 11 U.S.C. 522(b)(1)-(3); Minn. Stat. § 550.37
| State or federal exemptions | Filers may choose either Minnesota's exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d). No Minnesota statute denying the federal exemptions was identified. Under 11 U.S.C. 522(b)(2), the federal list applies unless state law "specifically does not so authorize." Spouses filing together must both use the same system. Which state's exemptions apply depends on where the filer was domiciled for the 730 days before filing (522(b)(3)(A)). Minnesota's statute includes a wildcard that applies only "in a bankruptcy" (Minn. Stat. § 550.37, subd. 28). |
|---|---|
| Homestead exemption | $540,000 per homestead, or $1,350,000 if used primarily for agricultural purposes (effective July 1, 2026; the statute text currently reads $510,000 / $1,275,000). The homestead may include up to 160 acres. Adjusted amounts are from the Minnesota Department of Commerce official notice of dollar-amount adjustments, effective July 1, 2026 (next adjustment scheduled for July 1, 2028): https://mn.gov/commerce/money/depository/interest-rates/dollar-amounts/ Statute: https://www.revisor.mn.gov/statutes/cite/510.02 |
| Car exemption | One motor vehicle: $10,200 (effective July 1, 2026); $27,000 for a vehicle regularly used for the benefit of a disabled person; $110,000 for a vehicle designed or modified for a disability; $13,750 for one vehicle reasonably necessary for the debtor's trade, business or profession. Adjusted amounts are from the Minnesota Department of Commerce official notice of dollar-amount adjustments, effective July 1, 2026 (next adjustment scheduled for July 1, 2028): https://mn.gov/commerce/money/depository/interest-rates/dollar-amounts/ |
| Wildcard exemption | In a bankruptcy, any property (including bank funds) up to $1,650 (effective July 1, 2026; statute base $1,500). Adjusted amounts are from the Minnesota Department of Commerce official notice of dollar-amount adjustments, effective July 1, 2026 (next adjustment scheduled for July 1, 2028): https://mn.gov/commerce/money/depository/interest-rates/dollar-amounts/ |
| Retirement accounts | Payments and rights under stock bonus, pension, profit-sharing, annuity, IRA, Roth IRA, SEP and similar plans are exempt up to a present value of $84,000 (effective July 1, 2026; the statute text reads $81,000), plus additional amounts reasonably necessary for the support of the debtor, spouse and dependents. Not exempt against support orders. Adjusted amounts are from the Minnesota Department of Commerce official notice of dollar-amount adjustments, effective July 1, 2026 (next adjustment scheduled for July 1, 2028): https://mn.gov/commerce/money/depository/interest-rates/dollar-amounts/ Federal law (11 U.S.C. 522(b)(3)(C)) separately protects tax-exempt retirement funds in bankruptcy. |
| Wages | Earnings that cannot be garnished under Minn. Stat. § 571.922 are exempt. Garnishment is limited to 10%, 15% or 25% of disposable earnings depending on weekly income (relative to 40, 60 and 80 times the greater of the Minnesota or federal minimum wage), or the amount above 40 times that minimum wage, whichever is less. |
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FAQ
Can you use the federal bankruptcy exemptions in Minnesota?
Filers may choose either Minnesota's exemptions or the federal bankruptcy exemptions in 11 U.S.C. 522(d).
How much home equity is protected in bankruptcy in Minnesota?
$540,000 per homestead, or $1,350,000 if used primarily for agricultural purposes (effective July 1, 2026; the statute text currently reads $510,000 / $1,275,000). The homestead may include up to 160 acres.
Can I keep my car in bankruptcy in Minnesota?
One motor vehicle: $10,200 (effective July 1, 2026); $27,000 for a vehicle regularly used for the benefit of a disabled person; $110,000 for a vehicle designed or modified for a disability; $13,750 for one vehicle reasonably necessary for the debtor's trade, business or profession.
Does Minnesota have a wildcard exemption?
In a bankruptcy, any property (including bank funds) up to $1,650 (effective July 1, 2026; statute base $1,500).
Are retirement accounts protected in bankruptcy in Minnesota?
Payments and rights under stock bonus, pension, profit-sharing, annuity, IRA, Roth IRA, SEP and similar plans are exempt up to a present value of $84,000 (effective July 1, 2026; the statute text reads $81,000), plus additional amounts reasonably necessary for the support of the debtor, spouse and dependents. Not exempt against support orders.
Are wages protected in bankruptcy in Minnesota?
Earnings that cannot be garnished under Minn. Stat. § 571.922 are exempt. Garnishment is limited to 10%, 15% or 25% of disposable earnings depending on weekly income (relative to 40, 60 and 80 times the greater of the Minnesota or federal minimum wage), or the amount above 40 times that minimum wage, whichever is less.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.