This past Monday Governor Pawlenty signed into law a revision to the Minnesota homestead exemption which does two things. First it increases the amount of equity in a homestead which is exempt from the current $200,000 to $300,000. Second, it increases the amount of land which is considered exempt from half an acre for the usual homestead located in a city to 160 acres.
When this new law goes into effect, which should be on August 1st, it should be much easier to claim a homestead as exempt in a bankruptcy or in any proceeding where a creditor is going after a homeowner in this state.
2022 update: Minnesota statutes now exempt homestead equity up to $480,000. This has resulted from incremental adjustments for inflation since the big jump in amount described here.