Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello,Under MN Stat. 550.37 Subd. 13, 75% of a debtor's net disposable earnings are exempt from attachment or levy. Therefore that 75% is exempt from seizure by the bankruptcy trustee, unless the earnings are held in a deposit account more than 20 days after paid by the debtor's employer. Your facts allege that the payment is only four days old, therefore the 75% remains exempt at the date of filing of the bankruptcy petition, and the remaining 25% must be turned over to the Bankruptcy trustee. Note: If the debtor chooses the federal bankruptcy exemption, debtor can exempt up to $12,725 in any property. Bankr. Code 522(d). This is more than sufficient to shield the debtor's cash earnings.Please let me know if my answer is helpful. And, thanks for using justanswer.com!