Bankruptcy in Minnesota
In Minnesota you choose state or federal exemptions (exemptions are the property the law lets you keep). Your home (homestead): $540,000 in equity, or $1,350,000 if the homestead is used mainly for farming (amounts effective July 1, 2026).
You file in the U.S. Bankruptcy Court for the District of Minnesota.
Checked against official sources: October 25, 2026. · Free letter and checklist ↓
What you can keep in Minnesota
Exemptions are the property the law lets you keep. You pick one whole set: the Minnesota list or the federal list. You can't mix them.
Law: 11 U.S.C. 522(b)(1)-(2); 11 U.S.C. 522(d)
| What | Minnesota exemption | Federal exemption |
|---|---|---|
Home (homestead) | $540,000 in equity, or $1,350,000 if the homestead is used mainly for farming (amounts effective July 1, 2026). The homestead can include up to 160 acres of land. The cap is per homestead, whether one or more debtors claim it, so married co-owners do not double it. Law: Minn. Stat. 510.01, 510.02 subd. 1-2 | $31,575 Law: 11 U.S.C. 522(d)(1) |
Car or other vehicle | One of: $10,200 in one vehicle; $27,500 in a vehicle regularly used by or for a physically disabled person; $110,000 in a vehicle designed or modified for a disability; or $13,750 in a vehicle reasonably necessary for your trade or business (amounts effective July 1, 2026). Law: Minn. Stat. 550.37 subd. 12a | $5,025 Law: 11 U.S.C. 522(d)(2) |
Household goods and clothing | All clothing, one watch, utensils and food. Household furniture, appliances, TVs, computers, phones and other electronics up to $12,600 total; jewelry up to $3,430; religious items $2,200; musical instruments $2,200; personal library $825; family pets $1,100; household tools and equipment (hand and power tools, snow blower, lawnmower) $3,300 (amounts effective July 1, 2026). Law: Minn. Stat. 550.37 subd. 2, 2a, 2b, 2c, 4, 27 | Household goods: $800 per item, $16,850 total Jewelry for personal or family use: $2,125 Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4) |
Wildcard (any property) | $1,650 in any property, including money in a bank account, in bankruptcy only (effective July 1, 2026). Law: Minn. Stat. 550.37 subd. 28 | $1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount Law: 11 U.S.C. 522(d)(5) |
Tools of your trade | $14,000 in tools, machines, office furniture, stock and library needed for your trade or profession (effective July 1, 2026). Farm machines and implements: $13,000. If you combine both, the total cannot exceed $13,000. Law: Minn. Stat. 550.37 subd. 5, 6, 7 | $3,175 Law: 11 U.S.C. 522(d)(6) |
Wages | Earnings that cannot be garnished under Minn. Stat. 571.922 are exempt, and stay exempt for 20 days after deposit in a bank. Law: Minn. Stat. 550.37 subd. 13; Minn. Stat. 571.922 | — |
Retirement accounts | Pensions, IRAs, Roth IRAs, SEPs, annuities and similar plans: up to a present value of $84,000, plus more if reasonably necessary to support you and your family (effective July 1, 2026). Not protected against support orders. The dollar cap does not apply to ERISA-qualified employer plans. Law: Minn. Stat. 550.37 subd. 24 | No dollar limit (IRAs are capped under 522(n)) Money in traditional and Roth IRAs is protected up to $1,711,975 in total. Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941 |
Public benefits | All need-based government assistance (MFIP, SSI, SNAP, general assistance, energy assistance, and similar) and low-income tax credits such as the federal EITC, the Minnesota working family credit and the renter's credit are exempt, and stay exempt for 60 days after deposit. Law: Minn. Stat. 550.37 subd. 14 | Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need) Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11) |
Other exemptions |
Law: Minn. Stat. 550.37 subd. 22; Minn. Stat. 550.37 subd. 15 | An unmatured life insurance policy you own (not credit life insurance): No dollar limit Cash value of life insurance: $16,850 Health aids prescribed by a professional for you or a dependent: No dollar limit Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9) |
If you use your state's exemptions, you can protect no more than $214,000 of home equity that you acquired in the 1,215 days (about 3 years and 4 months) before you filed. Equity moved from an earlier home in the same state, bought before that period, does not count. The cap does not apply to a family farmer's main home.
Law: 11 U.S.C. 522(p); 90 FR 8941
Amounts: July 1, 2026. Minnesota Department of Commerce, 'Historic Adjustments' table (version dated 6/25/2026), 10% adjustment under Minn. Stat. 550.37 subd. 4a and 510.02 subd. 2. The 2025 Minnesota Statutes still print the July 1, 2024 amounts. Next possible change: July 1, 2028.
Federal amounts: Amounts in effect for cases filed on or after April 1, 2025 (next automatic adjustment due April 1, 2028)
Law: 11 U.S.C. 104; 90 FR 8941-8942
These amounts are per person. If a married couple files one joint case, each spouse can claim the federal exemptions separately.
The means test in Minnesota: first step
Official Form 122A-1 compares your household's yearly income with the median income in Minnesota. Here are the official medians:
- 1 person$77,696
- 2 people$98,328
- 3 people$126,487
- 4 people$149,882
- Each extra person+$11,100
Applies to cases filed on or after April 1, 2026. 1 = one earner; 2, 3, 4 = people in the household; add = amount added for each person over 4
Where to file in Minnesota
You file in the federal bankruptcy district where you lived (your domicile) for most of the 180 days before you file. Minnesota has one district with offices in St. Paul, Minneapolis, Duluth and Fergus Falls. The court's locations page lists the counties in each division: https://www.mnb.uscourts.gov/court-info/court-locations
Law: 28 U.S.C. 1408
Divisions: St. Paul, Minneapolis, Duluth, Fergus Falls
Clerk's phone: (651) 848-1000 or 1-866-260-7337
Free help in Minnesota
Free letter and checklist
Letter: tell a creditor you filed bankruptcy
Notice to a creditor or debt collector with your case number, court, filing date and chapter.
Checklist: what to gather before you file
Income, tax returns, debts, property and budget papers the federal forms ask about, with Minnesota's courts.
Bankruptcy in Minnesota by topic
Exemptions in Minnesota
Home, car, household goods, wildcard and more, with the law for each.
The means test in Minnesota
The official median income and the first-step check.
Where to file in Minnesota
The bankruptcy courts, divisions, fees and the 341 meeting.
Good to know in Minnesota
- Minnesota amounts change every two years on July 1 of even years when inflation passes 10% steps. The latest change took effect July 1, 2026.
Law: Minn. Stat. 550.37 subd. 4a
- Minnesota has a very high homestead exemption ($540,000; $1,350,000 for farm homesteads) and a $1,650 wildcard that can protect bank account money in bankruptcy.
- The bankruptcy court holds free advice clinics with the Volunteer Lawyers Network, by phone and in person in St. Paul (second Thursday of each month).
Changes in 2024–2026
A 2024 law raised several amounts as of August 2024 (vehicle to $10,000, new disability and work-vehicle categories, a new $1,500 bankruptcy wildcard, household tools $3,000). On July 1, 2024 the indexed amounts rose (homestead $510,000 / $1,275,000). On July 1, 2026 they rose again: homestead $540,000 / $1,350,000; household goods $12,600; vehicle $10,200; wildcard $1,650; tools of trade $14,000; retirement $84,000.
Law: Laws 2024, c. 114, art. 3
Questions about bankruptcy in Minnesota
Can I use the federal bankruptcy exemptions in Minnesota?
You can. Minnesota lets you choose the state exemptions or the federal exemptions in 11 U.S.C. 522(d). You must pick one whole set.
What is the homestead exemption in Minnesota?
$540,000 in equity, or $1,350,000 if the homestead is used mainly for farming (amounts effective July 1, 2026). The homestead can include up to 160 acres of land.
How much of a car can I keep in bankruptcy in Minnesota?
One of: $10,200 in one vehicle; $27,500 in a vehicle regularly used by or for a physically disabled person; $110,000 in a vehicle designed or modified for a disability; or $13,750 in a vehicle reasonably necessary for your trade or business (amounts effective July 1, 2026).
Does Minnesota have a wildcard exemption?
$1,650 in any property, including money in a bank account, in bankruptcy only (effective July 1, 2026).
What household goods can I keep in Minnesota?
All clothing, one watch, utensils and food. Household furniture, appliances, TVs, computers, phones and other electronics up to $12,600 total; jewelry up to $3,430; religious items $2,200; musical instruments $2,200; personal library $825; family pets $1,100; household tools and equipment (hand and power tools, snow blower, lawnmower) $3,300 (amounts effective July 1, 2026).
Are retirement accounts protected in bankruptcy in Minnesota?
Pensions, IRAs, Roth IRAs, SEPs, annuities and similar plans: up to a present value of $84,000, plus more if reasonably necessary to support you and your family (effective July 1, 2026). Not protected against support orders. The dollar cap does not apply to ERISA-qualified employer plans.
Are my wages protected in Minnesota?
Earnings that cannot be garnished under Minn. Stat. 571.922 are exempt, and stay exempt for 20 days after deposit in a bank.
Where do I file bankruptcy in Minnesota?
You file in the federal bankruptcy district where you lived (your domicile) for most of the 180 days before you file. Minnesota has one district with offices in St. Paul, Minneapolis, Duluth and Fergus Falls. The court's locations page lists the counties in each division: https://www.mnb.uscourts.gov/court-info/court-locations
What is the median income for the means test in Minnesota?
For cases filed on or after April 1, 2026: 1 person: $77,696; 2 people: $98,328; 3 people: $126,487; 4 people: $149,882; Each extra person: +$11,100.
Where can I get free help with bankruptcy in Minnesota?
Volunteer Lawyers Network bankruptcy advice clinics (with the U.S. Bankruptcy Court), Volunteer Lawyers Network and LawHelp Minnesota.