So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.
You may want to consider a chapter 7
bankruptcy. I will explain.
As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13
. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.
A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption. In your situation it appears that you would be able to retain your assets
A Chapter 13 bankruptcy is a repayment plan
for an individual. It may require that you repay some of your unsecured credit card debt
over a 3 -5 year period. However, you may retain assets that exceed your exemption.
Here are the exemptions for Minnesota: