How to File Bankruptcy in Minnesota: Chapters, Exemptions, and Forms

To file bankruptcy in Minnesota, you choose between Chapter 7 and Chapter 13, complete a credit counseling course from an approved agency, pick either Minnesota or federal property exemptions, fill out the federal bankruptcy forms, and file them with the U.S. Bankruptcy Court for the District of Minnesota along with the filing fee. Everything after that runs on a federal timeline: an automatic stay stops collection immediately, a trustee meets with you about a month later, and a discharge follows if your paperwork holds up.

Chapter 7 or Chapter 13

Chapter 7 wipes out most unsecured debts such as credit cards and medical bills. A trustee reviews your assets and can sell anything an exemption doesn’t cover, though most Minnesota cases are “no-asset” cases where exemptions protect everything. The case usually closes in about four months.

Eligibility runs through the means test. If your household income sits below Minnesota’s median, you pass automatically. If it’s above, a second calculation subtracts allowed living expenses and debt payments; only if enough remains will the court presume the filing is abusive and push you toward Chapter 13.1United States Courts. Chapter 7 – Bankruptcy Basics

For cases filed between November 1, 2025, and April 30, 2026, the Minnesota median income figures are:

  • One person: $75,704
  • Two people: $95,807
  • Three people: $123,244
  • Four people: $146,039, plus $11,100 for each additional household member

These numbers update twice a year, so check the current Department of Justice table if you file later in 2026.2U.S. Department of Justice. Census Bureau Median Family Income By Family Size The means test also doesn’t apply if your debts are primarily non-consumer, meaning most came from a failed business or similar obligations; in that case you can file Chapter 7 regardless of income.

Chapter 13 works differently. You keep your property and propose a repayment plan of three to five years, sending monthly payments to a trustee who distributes the money to creditors. Remaining qualifying debts are discharged when the plan finishes.3United States Courts. Chapter 13 – Bankruptcy Basics As of April 1, 2025, you qualify only if your unsecured debts are below $526,700 and your secured debts are below $1,580,125.4Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor Chapter 13 fits best if you’re behind on a mortgage or car loan and want to catch up through the plan, or if your income is too high for Chapter 7.

Credit Counseling and Documents to Gather

Before you file, you must complete a credit counseling briefing from an approved nonprofit agency within the 180 days before your petition. The course covers budgeting and alternatives to bankruptcy, and without the certificate the court will not accept your case.4Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor Approved providers offer it online or by phone for roughly $20 to $50, and fee waivers exist for filers who can’t afford it.

Pull the following together before you touch the forms:

  • Pay stubs from the last six months and tax returns for the past two years
  • A list of every creditor with address, account number, and balance
  • An asset inventory with estimated values for real estate, vehicles, bank accounts, and retirement funds
  • Your monthly expenses: rent or mortgage, utilities, food, transportation, insurance, and other regular costs
  • Bank statements for at least the last two to three months

Assembling this material first prevents the accidental omissions that most often derail cases. Leaving out an asset or a creditor, even by mistake, can lead to dismissal or leave a debt undischarged, and a trustee who suspects concealment can ask the court to deny your discharge outright.

Choosing Minnesota or Federal Exemptions

Exemptions decide what you keep. Minnesota is one of the states that lets you choose between its state exemptions and the federal set, but you can’t mix them. Run the numbers under both before filing; picking the wrong system is one of the most consequential mistakes in a Minnesota bankruptcy.

Minnesota State Exemptions

The state homestead exemption protects up to $510,000 of equity in a primary residence, or up to $1,275,000 if the home is used primarily for agricultural purposes, on up to 160 acres.5Minnesota Office of the Revisor of Statutes. Minnesota Statutes 510.02 – Area and Value; How Limited Other key state exemptions include:6Minnesota Office of the Revisor of Statutes. Minnesota Statutes 550.37 – Exempt Property

  • Motor vehicle: up to $10,000 in equity in one car, rising to $25,000 if regularly used by a physically disabled person and up to $100,000 for a vehicle modified for a disability
  • Household goods and electronics: up to $12,150 for furniture, appliances, computers, phones, and similar items
  • Jewelry: up to $3,308
  • Tools of trade: up to $13,500 for equipment, instruments, and supplies necessary for your work
  • Personal injury claims: fully exempt with no dollar cap
  • Wildcard (bankruptcy only): up to $1,500 applied to any property, including cash

Minnesota also fully exempts all clothing, one watch, food, and utensils, along with public assistance benefits and earnings not subject to garnishment.

Federal Exemptions

The federal homestead exemption is $31,575 for cases filed between April 1, 2025, and March 31, 2028, far below Minnesota’s $510,000, so most homeowners choose the state system. The federal system sometimes wins on the wildcard: $1,675 plus up to $15,800 of any unused homestead exemption, for a potential total wildcard of $17,475. Renters with cash or personal property to protect often come out ahead under the federal set for that reason.

The Forms You File

Bankruptcy forms are federal, not state-specific. The core packet includes:

  • Form 101, Voluntary Petition, which opens the case and identifies the chapter you’re filing under7United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy
  • Schedules 106A/B through 106J, covering property, debts, executory contracts, co-debtors, income, and expenses in detail
  • Form 107, Statement of Financial Affairs, a look at recent payments to creditors, lawsuits, and property transfers
  • Means test forms: 122A-1 and 122A-2 for Chapter 7, or 122C-1 and 122C-2 for Chapter 13 (which also sets the required plan length)
  • Form 108, Statement of Intention, required only for Chapter 7 filers, showing what you plan to do with secured property like a car loan or mortgage

Everything you file becomes public record, so you must redact sensitive identifiers yourself. Show only the last four digits of Social Security numbers and financial account numbers. The court doesn’t do that for you.

Where to File, and What It Costs

You file with the U.S. Bankruptcy Court for the District of Minnesota. The court has four locations: St. Paul, Minneapolis, Duluth, and Fergus Falls. St. Paul and Minneapolis accept both mail and in-person filings; Duluth and Fergus Falls accept neither.8United States Bankruptcy Court, District of Minnesota. United States Bankruptcy Court – District of Minnesota Attorneys file electronically. If you’re filing without a lawyer, you submit documents in person or by mail at one of the two offices that accept them.

Filing fees are set by federal statute.9Office of the Law Revision Counsel. 28 US Code 1930 – Bankruptcy Fees The total, including the Judicial Conference surcharge, is $338 for Chapter 7 and $313 for Chapter 13. If your household income is below 150% of the federal poverty guidelines, you can apply for a complete fee waiver in a Chapter 7 case. In either chapter you can ask to pay in installments.

What Happens After You File

The Automatic Stay

Filing triggers an automatic stay, a federal court order that immediately halts most collection activity: lawsuits, wage garnishments, collection calls, foreclosure proceedings, and vehicle repossession attempts.10Office of the Law Revision Counsel. 11 US Code 362 – Automatic Stay The stay does not stop criminal proceedings, does not pause collection of child support or alimony from property outside the bankruptcy estate, and does not halt tax audits or notices of deficiency. If a landlord already obtained a judgment for possession before you filed, the eviction can generally proceed. Secured creditors can also ask the court to lift the stay in specific circumstances.

The 341 Meeting of Creditors

Within roughly 30 to 45 days of filing, you attend a meeting of creditors, known as the 341 meeting. The trustee assigned to your case runs it. Creditors are invited but rarely attend. The trustee questions you under oath about the accuracy of your income, debts, and assets as reported.11Office of the Law Revision Counsel. 11 US Code 341 – Meetings of Creditors and Equity Security Holders Bring a government-issued photo ID and proof of your Social Security number. If your paperwork is in order, the hearing usually takes 5 to 10 minutes.

Debtor Education and Discharge

After filing but before you can receive a discharge, you must complete a second course, this one focused on personal financial management. It’s separate from the pre-filing counseling and runs about $20 to $50. Skip it and the court will not enter your discharge.12Office of the Law Revision Counsel. 11 USC 727 – Discharge

In Chapter 7, the discharge typically enters about 60 days after the 341 meeting if no objections arise and the education course is done. In Chapter 13, the court must first confirm your repayment plan; the plan must be proposed in good faith, must pay unsecured creditors at least as much as they’d get in a hypothetical Chapter 7 liquidation, and must show you can afford the payments.13Office of the Law Revision Counsel. 11 US Code 1325 – Confirmation of Plan Your discharge follows completion of the three-to-five-year payment schedule.

Debts That Survive Bankruptcy

Some debts don’t go away in either chapter:14Office of the Law Revision Counsel. 11 US Code 523 – Exceptions to Discharge

  • Child support, alimony, and other domestic support obligations, along with related debts from a divorce or separation agreement
  • Student loans, unless you can prove repayment would impose an “undue hardship,” a standard courts have historically read narrowly
  • Recent income taxes, unless the return was due at least three years before filing, you filed the return at least two years before filing, and the tax was assessed at least 240 days before your petition; taxes from fraudulent returns or willful evasion are never dischargeable
  • Debts from fraud, embezzlement, larceny, or willful and malicious injury to another person or their property
  • Criminal fines and restitution
  • Debts you didn’t list on your schedules, if that creditor didn’t learn about the case in time to file a claim

If your main goal is to eliminate one of these, get legal advice before filing so you know whether bankruptcy will do what you want it to do.

Filing With or Without an Attorney

You can file pro se, which eliminates the largest single cost. A straightforward Chapter 7 in Minnesota commonly runs $1,000 to $2,000 in attorney fees; Chapter 13 runs higher because the lawyer’s work stretches across the repayment plan. Add the two mandatory courses at roughly $20 to $50 each and the court fee, and a Chapter 7 with counsel typically lands between $1,400 and $2,500 all in.

Filing without a lawyer makes the most sense in simple Chapter 7 cases with no real property, no business debts, and no complicated asset questions. If you own a home, have real equity in anything, or need to file Chapter 13, the case is complex enough that professional help usually pays for itself. Bankruptcy mistakes tend to be expensive and hard to undo.