Michigan Bankruptcy Exemptions

The Michigan bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Michigan. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)

In Michigan, you also have the choice of using the federal exemption statutes instead of your Michigan exemptions.

An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.

If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.

When you file bankruptcy in Michigan you may also use certain federal exemptions in addition to your Michigan exemptions.

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
Homestead	Real property including condo to $3500; property cannot exceed 1 lot in town, village, city, or 40 acres elsewhere Spouse or child of deceased owner may claim homestead exemption Property held as tenancy by the entirety may be exempt against debts owed by only one spouse	559.214, 600.6023(1)(h), (I), 600.6023(3), 600.6027 SNB Bank & Trust v. Kensey,378 N.W. 2d 594 (Ct. App.Mich. 1985)
Insurance	Disability, mutual life or health benefits Fraternal benefit society benefits Life, endowment or annuity proceeds if clause prohibits proceeds from being used to pay beneficiary�s creditors	600.6023(1)(f) 500.8181 500.4054
Miscellaneous	Property of business partnership	449.25
Pensions	Firefighters, police officers ERISA-qualified benefits IRAs Judges Legislators Probate Judges Public school employees State employees	38.559(6) 600.6023(1)(k) 600.6023(1)(l) 38.825 38.1057 38.925 38.1346 38.40
Personal property	Appliances, utensils, books, furniture & household goods to $1000 total Building & loan association shares to $1000 par value, in lieu of homestead Burial plots, cemeteries; church pew, slip, seat Clothing; family pictures 2 cows, 100 hens, 5 roosters, 10 sheep, 5 swine; hay & grain to last 6 months if you�re a head of household Food & fuel to last 6 months if you�re a head of household	600.6023(1)(b) 600.6023(1)(g) 600.6023(1)(c) 600.6023(1)(a) 600.6023(1)(d) 600.6023(1)(a)
Public benefits	AFDC Crime victim�s compensation Social welfare benefits Unemployment compensation Veterans� benefits for Korean War veterans Veterans� benefits for Vietnam veterans Veterans� benefits for WWII veterans Workers� compensation	330.1158a 18.362 400.63 421.30 35.977 35.1027 35.926 418.821
Tools of trade	Arms & accoutrements you�re required to keep Tools, implements, materials, stock, apparatus, team, motor vehicle, horse & harness to $1000 total	600.6023(1)(a) 600.6023(1)(e)
Wages	60% of earned but unpaid wages for head of household; else 40$; head of household may keep at least $15 per week plus $2 per week per non-spouse dependent; other may keep at least $10 per week	600.5311
WILD CARD	NONE