Legal Question in Bankruptcy in Minnesota

Housing exemption

I have what seemingly is a simple question but cannot find an answer anywhere on the internet. Under the Minnesota bankruptcy law, one can exempt up to $200,000 for a primary residence. Is the $200,000 the fair market value of the property or is the $200,000 the maximun equity one can have in the property regardless of the property's fair market value?


Asked on 7/11/05, 4:14 pm

2 Answers from Attorneys
Sam Calvert Calvert Law Office

Re: Housing exemption

It is the equity of the home. Note the 1/2 acre limitation if within the "laid out or platted part of a city"

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Answered on 7/11/05, 8:04 pm
David Kelly-952-544-6356 Kelly Law Office

Re: Housing exemption

As Mr. Calvert correctly said, it is the equity not the actual value.

HOWEVER, under the new law which was passed on April 20th, the number has been cut back to $125,000 for anyone who has lived in their home for less than about four years.

Most of the new law goes into effect on October 17th, but that part became effective immediately. This new statute is very nasty and I am telling everyone that if they are thinking at all about a bankruptcy, they best file now before it's too late.

It appears that the new law will create large groups of people who won't be able to file 7 or 13.

You can reach me at 952-544-6356.

This response is for general information 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.

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Answered on 7/12/05, 11:41 am


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