Michigan Bankruptcy Exemptions
The chart below contains a summary of Michigan state bankruptcy exemptions and other relevant statutory laws. Click here for complete State of Michigan bankruptcy exemptions laws.
Note: Federal bankruptcy exemptions are available.
Click here for Federal Bankruptcy Exemptions
Personal exemptions allowed by Michigan Bankruptcy Laws
Note: Under the 2005 bankruptcy law, almost all types of tax-exempt retirement accounts are exempt in bankruptcy whether state or Federal exemptions are used. Exemptions for 401(k)s, 403(b)s, profit-sharing and money purchase plans, and defined benefit plans include the entire account amounts. However, with traditional and Roth IRAs, the exemption is limited to a total value of $1,171,650 per person for all accounts held by the debtor (not per account). The total value amount is adjusted every three years for inflation. The relevant statutes: 11 U.S.C. §522(d)(12) for Federal bankruptcy exemptions; 11 U.S.C. §522(b)(3)(C) for state bankruptcy exemptions.
Note: Bankruptcy exemption amounts are adjusted for inflation every 3 years by the Michigan Department of Treasury. So the amounts listed in the statutes may not be current. The last adjustment was in 2008. This chart reflects the current exemption amounts. View all the current amounts here.
|Michigan Homestead||Real property to $34,450 (if debtor is over 65 years old or disabled, to $51,650). Property cannot exceed one lot in town, village, city, or 40 acres elsewhere. Spouses or unmarried co-owners may not double.||600.5451(1)(n);|
|Wages||Head of household can keep 60% of earned but unpaid wages (not less than $15 per week), plus $2 per week per non-spouse dependents. If not head of household, debtor may keep 40% of earned but unpaid wages (not less than $10 per week).||600.5311|
|Automobile||Up to $3,175||600.5451(1)(g)|
|Other property||Disability, mutual life, or health benefits||600.5451(1)(j)|
|Property of business partnership||449.25|
|Appliances, utensils, books, furniture, and household goods to $525 each, $3,450 total||600.5451(1)(c)|
|Clothing and family pictures||600.5451(1)(a)|
|Burial plots, cemeteries||600.5451(1)(a)(vii)|
|Tools, implements, materials, stock, apparatus, or other things needed to carry on occupation to $2,300 total||600.5451(1)(i)|
Note: While this reference information is current as of August 2010, it may not reflect the most up-to-date exemption figures on official state of Michigan bankruptcy court statutes.