2020 Changes to Minnesota Bankruptcy Exemption Amounts

Minnesota exemption figures increase on July 1, 2020.

Bankruptcy exemptions allow a debtor to protect property needed to work and live after a bankruptcy proceeding. Some of the exemptions outlined in Minnesota law increased effective July 1, 2020.

  • Homestead exemption. $420,000 will increase to $450,000; $1,050,000 if used for agriculture purposes will increase to $1,125,000. (Minn. Stat. 510.2 subd 1.)
  • Motor vehicle. $4,800 will increase to $5,000; the increased exemption available if the vehicle was modified for disability has changed—the modification cost of at least $3,600 will increase to $3,750. (Minn. Stat. 550.37 subd 12a.)
  • Personal goods. $10,800 will increase to $11,250. (Minn. Stat. 550.37 subd 4.)
  • Wedding ring. $2,940 will increase to $3,062.50. (Minn. Stat. 550.37 subd 4.)
  • Business tools. $11,500 will increase to $12,500. (Minn. Stat. 550.37 subd 6.)
  • Insurance benefits. $46,000 will increase to $50,000. (Minn. Stat. 550.37 subd 10.)
  • Insurance benefits for additional dependent. $12,000 will increase to $12,500. (Minn. Stat. 550.37 subd 10.)
  • Accrued interest. $9,600 will increase to $10,000. (Minn. Stat. 550.37 subd 23.)
  • Employee benefits. $72,000 will increase to $75,000. (Minn. Stat. 550.37 subd 24.)

For more information, see How to File Bankruptcy in Minnesota.

Avoid property loss by verifying all bankruptcy exemption amounts through independent research or by consulting with a local bankruptcy attorney. These figures change on July 1 of each even year to reflect a 10% increase.

Effective date: July 1, 2020