The assets that are exempt from bankruptcy in Michigan are determined by the state’s exemption laws. The following are some of the most common exempt assets in Michigan:
- Homestead exemption: Up to $35,500 of equity in your home.
- Motor vehicle exemption: Up to $3,250 of equity in your car.
- Personal property exemption: Up to $3,525 of household goods and $600 of jewelry.
- Clothing exemption: All clothing is exempt.
- Family pictures exemption: All family pictures are exempt.
- Burial plot exemption: Up to $1,000 for a burial plot.
- Tools of the trade exemption: Up to $1,500 of tools and equipment used by you in your trade or profession.
- Public benefits exemption: Up to $1,000 of public benefits, such as welfare, unemployment benefits, and Social Security benefits.
- Life insurance exemption: Up to $10,000 of life insurance proceeds.
- Pension exemption: The entire value of your pension is exempt.
- Retirement account exemption: The entire value of your retirement account is exempt.
The amounts of the exemptions are adjusted annually for inflation.
If you are married and filing for bankruptcy together, you can double the amount of most exemptions.
It is important to note that these are just the general exemptions available in Michigan bankruptcy. There may be other exemptions available to you depending on your individual circumstances. You should speak with an experienced bankruptcy attorney to discuss your options and determine which exemptions are available to you.
- Bankruptcy Resources for Michigan Residents
- What is Chapter 13 Bankruptcy
- What is Chapter 7 Bankruptcy
Here are some additional things to keep in mind about bankruptcy exemptions in Michigan:
- The exemptions are only available to you if you file for bankruptcy. If you do not file for bankruptcy, your creditors can take your assets, even if they are exempt.
- The exemptions are not automatic. You must claim them in your bankruptcy paperwork.
- Your creditors can object to your exemptions. If a creditor objects, the bankruptcy court will decide whether or not to allow the exemption.
If you are considering filing for bankruptcy, it is important to speak with an experienced bankruptcy attorney to discuss your options and determine which exemptions are available to you.
