Minnesota allows debtors to choose federal bankruptcy exemptions under 11 U.S.C. Section 522(b)(2) -- here is how they compare to state exemptions
Yes. Minnesota has not opted out of the federal exemption system. Under 11 U.S.C. Section 522(b)(2), Minnesota debtors filing bankruptcy can choose between:
You must choose one system. You cannot mix and match federal and state exemptions.
| Asset Type | Federal 522(d) | Minnesota State |
|---|---|---|
| Homestead | $27,900 ($55,800 couple) | $450,000 (or 160 acres rural) |
| Vehicle | $4,450 | $5,000 (one vehicle) |
| Wildcard | $1,475 + up to $13,950 unused homestead | None |
| Personal property | $700 per item, $14,875 total | Varies by category |
| Wages | Not specifically protected | 75% of wages exempt |
| Retirement (IRA) | $1,512,350 | Fully exempt |
| 401(k)/Pension | Unlimited (ERISA) | Unlimited (ERISA) |
| Tools of trade | $2,800 | $13,000 |
| Jewelry | $1,875 | One watch + wedding ring |
| Life insurance | $14,875 (loan value) | $46,000 (cash value) |
Federal amounts are as of April 2025 adjustments. State amounts per Minnesota Statutes Section 550.37. Amounts for married couples filing jointly may differ.
Section 522(b)(2) of the Bankruptcy Code provides that in states that have not opted out, a debtor may exempt property listed in Section 522(d) (the federal exemptions) instead of state law. The choice applies to all property -- you select one system for your entire case.
If you are married and filing jointly, both spouses must choose the same system. If you are filing individually, your spouse's non-filing status does not affect your choice.
To use Minnesota exemptions, you must have been domiciled in Minnesota for at least 730 days (2 years) before filing. If you have not lived in Minnesota that long, you may need to use the exemptions from your previous state. The federal exemptions under 522(d) are available as long as Minnesota has not opted out -- which it has not.
Minnesota Bankruptcy Guide | Federal Exemptions Overview | Which States Opted Out? | Homestead Exemptions by State