Michigan Bankruptcy Exemptions
UPDATED: Oct 21, 2024
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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
UPDATED: Oct 21, 2024
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Federal bankruptcy exemptions available? YES
Michigan’s homestead exemption is up to $38,225 for a single person or a married couple (up to $57,350 for a disabled single person or married couple if over 65). The property in question cannot be larger than one lot or parcel in a town, village, or city, or 40 acres anywhere else. If the owner of the property is deceased, the spouse and children may claim this exemption.
The references to Michigan statutes are to the Michigan Compiled Laws. In Michigan the dollar amounts of exemptions are adjusted for inflation at 3-year intervals, and were last adjusted in early 2017 (the next adjustment would be in 2020). This means that the amounts given in the statutes cited will not be correct. To find the most up-to-date exemption amounts, go to the Michigan website below.
Resources
United States Bankruptcy Court, Eastern District of Michigan
United States Bankruptcy Court, Western District of Michigan
35.926
| Michigan Bankruptcy Exemptions | ||
|---|---|---|
| Assets | Exemption | State Statute |
| Homestead | Property owned by married couple as tenancy in the entirely may be exempt if only one spouse is the debtor. | 600.5451(1)(o) |
| Insurance | Life insurance policy or trust fund sponsored by an employer: all. | 500.2210 |
| Life insurance: all. | 500.2207 | |
| Life, endowment, or annuity proceeds: all if there is a clause that forbids the use of proceeds to pay the beneficiary’s creditors. | 500.4054 | |
| Fraternal benefit society benefits: all. | 500.8181 | |
| Health, disability, or mutual life benefits: all. | 600.5451(1)(j) | |
| Miscellaneous | Property belonging to business partnership: all. | 449.25 |
| Pensions | Federal pension exemptions. | |
| State employee pensions: all. | 38.40; 38.1683 | |
| Firefighter and police pensions: all. | 38.559(6); 38.1683 | |
| Legislator pensions: all. | 38.1057; 38.1683 | |
| Public school employee pensions: all. | 38.1346; 38.1683 | |
| Judge pensions: all. | 38.2308; 38.1683 | |
| Probate judge pensions: all. | 38.2308; 38.1683 | |
| IRAs and Roth IRAs: all contributions made more than 120 days before filing for bankruptcy. | 600.5451(1)(l) | |
| ERISA qualified benefits: all contributions made more than 120 days before filing for bankruptcy. | 600.5451(1(m) | |
| Personal Property | Health aids prescribed by a health professional: all. | 600.5451(1)(a) |
| Burial plots or cemeteries: all. | 600.5451(1)(a) | |
| Clothing and family pictures: all. | 600.5451(1)(a) | |
| Food and fuel: enough to last the family up to 6 months. | 600.5451(1)(b) | |
| Household goods, furniture, appliances, utensils, and books: up to $600 each and $3,825 total (inflation adjusted). | 600.5451(1)(c) | |
| Pews, slips, or seats in a church for the entire family: up to $650 (inflation adjusted). | 600.5451(1)(d) | |
| Animals, feed, and crops: up to $2,550 (inflation adjusted). | 600.5451(1)(e) | |
| Household pets: up to $650 (inflation adjusted). | 600.5451(1)(f) | |
| Motor vehicle: 1 up to $3,525 (inflation adjusted). | 600.5451(1)(g) | |
| Computer and accessories: up to $650 (inflation adjusted). | 600.5451(1)(h) | |
| Public Benefits | Crime victims’ compensation benefits: all. | 18.362 |
| Veterans’ benefits for WWII veterans: all. | ||
| Veterans’ benefits for Korean War veterans: all. | 35.977 | |
| Veterans’ benefits for Vietnam veterans: all. | 35.1027 | |
| Social welfare benefits: all. | 400.63 | |
| Workers’ compensation benefits: all. | 418.821 | |
| Unemployment compensation benefits: all. | 421.30 | |
| Tools of Your Trade | Arms and accoutrements: all necessary for trade. | 600.6023(1)(a) |
| Motor vehicle, tools, implements, materials, apparatus, stock, team, horse, and harness: up to $1,000 total. | 600.6023(1)(e) | |
| Wages | Wages for head of household: at least 60% of weekly unpaid wages (not less than $15 per week) plus $2 per week for each nonspouse dependent. | 600.5311 |
| Wages for person other than head of household: at least 40% of weekly unpaid wages (not less than $10 per week). | 600.5311 | |
| Wildcard | No exemption. | |
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.