Legal Question in Bankruptcy in Minnesota

Re: farm breeding stock -tools of the trade?

I have done little if any bankruptcy work for farmers - but looking in my statute bood I see the following:

Minnesota Statutes Sec. 550.37, Subdivision 5 provides for an exemption of $13,000 for farm machines and implements, livestock, farm produce and standing crops. There is language that seems to say that to qualify you must be "engaged prinicipally in farming." There is also language that implies that assuming you and your spouse are partners in the operation, you each get a $13,000 exemption.

I conclude that you are in pretty good shape to do a Chapter 7 bankruptcy when it comes to the livestock - depending on what else you may need to use that particular exemption for.

I worry more about your land. There is a homestead exemption that covers 160 acres, provided that you are not "within the laid out or platted portion of a city ..." If you are within a city, the area drops to half an acre. There is also a value limit - $500,000 for land used "primarily for agricultural purposes," otherwise the max is $200,000.

Consult a lawyer - such as me. You may qualify for a Chapter 7.

This response is for general informational purposes only and does not create an attorney-client relationship. You are advised to consult the attorney of your choice concerning the details of your case.