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What are bankruptcy exemptions in Minnesota?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Minnesota offers one of the most generous state homesteads in the country (especially for agricultural land) and allows debtors to choose between state and federal exemptions.

1. Choice Between State and Federal

Minnesota did not opt out. Debtors may choose state exemptions or federal exemptions (11 U.S.C. § 522(d)).

2. Minnesota Homestead — Minn. Stat. § 510.01-.02

  • $510,000 for non-agricultural (residential) homestead (effective July 1, 2024; adjusted every 2 years).
  • $1,275,000 if homestead is used for agricultural purposes (160 acres).
  • Homestead acreage limit: 1/2 acre in city, 160 acres in rural area.

    • The agricultural homestead is among the strongest farmland protections in the U.S.

    3. Wildcard — Minn. Stat. § 550.37

  • Minnesota does NOT have a general state wildcard — important distinction from many states.

    • 4. Motor Vehicle — Minn. Stat. § 550.37 Subd. 12a

  • $5,000 equity in one motor vehicle.
  • $50,000 if the vehicle has been modified for a disability.

    • 5. Personal Property — Minn. Stat. § 550.37 Subd. 4, 6

  • Household goods, furniture, appliances, jewelry: $11,250 aggregate (subdivision 4(b)).
  • Family Bible, library, musical instruments: unlimited (subdivision 2).
  • Wearing apparel and groceries: unlimited (subdivision 4(a)).
  • Wedding rings: $3,062.50.
  • Burial plot: unlimited.

    • 6. Tools of Trade — Minn. Stat. § 550.37 Subd. 6

  • $13,000.
  • Farm machinery for farmer: $13,000.

    • 7. Wages — Minn. Stat. § 550.37 Subd. 13, 571.922

    75% of disposable earnings OR 40x federal minimum wage exempt — more protective than CCPA.

    8. Retirement Accounts — Minn. Stat. § 550.37 Subd. 24

  • ERISA plans, IRAs, Roth IRAs: fully exempt up to $90,000 of accrued earnings.

    • 9. Insurance — Minn. Stat. § 61A.12, § 550.37

  • Life insurance proceeds and cash value — generally exempt to spouse/dependents.

    • 10. Public Benefits — Minn. Stat. § 550.37 Subd. 14

    Social Security, unemployment, workers' comp, veterans', public assistance — fully exempt.

    11. Personal Injury Proceeds — Minn. Stat. § 550.37 Subd. 22

  • $20,000 plus future earnings for personal bodily injury.

    • 12. Earned Income Tax Credit — Minn. Stat. § 550.37 Subd. 14

    Fully exempt.

    13. Health Aids — Minn. Stat. § 550.37 Subd. 4

    Fully exempt.

    14. Federal § 522(p) Cap

    $214,000 federal cap on homestead acquired within 1,215 days applies despite MN's $510,000 state homestead.

    15. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3).

    16. Inflation Adjustment

    Many MN exemptions adjusted every 2 years, including the homestead.

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You acquired your homestead within 1,215 days and face the $214,000 federal cap
    • You operate a farm and want to maximize the $1,275,000 agricultural homestead
    • Your retirement accounts exceed the $90,000 cap on accrued earnings
    Related Statutes & Laws
    • Minn. Stat. § 510.01
    • Minn. Stat. § 510.02
    • Minn. Stat. § 550.37
    • 11 U.S.C. § 522(p)

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.