The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law.
Minnesota Bankruptcy Case:
In re Hanson, BKY 09-30479 (Bankr. D. Minn. 9/21/09) (O’Brien, J.).
No Exemption for Farm Equipment if You are Not a Farmer
The trustee objected to the Hansons’ claimed exemption of farm equipment and machinery under 11 U.S.C. § 522(b)(3) and Minn. Stat. § 550.37, Subd. 5. The exemption is only available to debtors who either are principally engaged in farming at the time of the bankruptcy filing, or who have a recent prepetition history of principal engagement in farming interrupted by circumstances not of the debtor’s choosing, a realistic intention to resume such farming, and who have a reasonable expectation to return to a principal engagement in farming in the near future. In re Johnson, 230 B.R. 608, 610-11 (B.A.P. 8th Cir. 1999). The court denied the exemption because it found that the debtors had not been principally engaged in farming for eight years and they had not shown that they had the resources to transition to fulltime farming anytime in the near future.
Credit: The preceding was a summary of a case relevant to Minnesota bankruptcy law. The case summary was prepared by the U.S. Bankruptcy Court through Judge Robert J. Kressel & attorney Faye Knowles.