What Property Can I Keep If I File For Bankruptcy In Michigan?

Posted by Michigan Bankruptcy Law Firm on August 3, 2010 · Leave a Comment

Generally speaking, Michigan debtors may select from one of two exemption schemes. Please be aware that amounts and exempted items are constantly changing and may not be the same in the future. You should refer to a Michigan bankruptcy lawyer or official Michigan state bankruptcy website for updated information.

Exemptions Under The First Option Debtors Generally Able To Keep:

Your home, including co-op or mobile home, to $20,200
Life insurance payments for person you depended on, needed for support
Life insurance policy with loan value, in accrued dividends or interest to $10,775
Unmatured life insurance contract, except credit insurance policy
Alimony, child support needed for support
Pensions and retirement benefits, ERISA – qualified benefits needed for support
$550 per item in any household goods up to a total of $10,775
Health aids
Jewelry to $1,350
Lost earnings payments
Your motor vehicle to $3,225
Personal injury compensation payments to $20,200, wrongful death payments, crime victims’ compensation, public assistance, Social Security, unemployment compensation, and veterans’ benefits
Tools of trade up to $20,200

Under Michigan Exemption Option 2 Debtors Are Usually Able To Keep:

Your home, if you do not have more than $34,450 ($51,650 if elderly or disabled) in equity in the house (today’s value less costs of sale less payoff balances on all liens and mortgages)
Family pictures and clothing
Food and fuel to last six months
Household goods, furniture, appliances, utensils, books, up to $3,450 total (maximum $525 per item)
Burial plots; church pew, slip, seat
Crops, farm animals and feed for the farm animals to $2,300
Food and fuel to last family for six months
Arms and accouterments you’re required by law to keep
Tools of trade and farm equipment, up to $2,300 in value
Building and loan shares to $1,150 par value if you did not claim a homestead exemption
Disability, mutual life and/or health benefits; fraternal benefit society benefits; and life, endowment or annuity proceeds if a clause in the policy prohibits the proceeds from being used to pay the beneficiary’s creditors
Private retirement benefits
ERISA-qualified pension benefits
Public employees’ pensions
Property of a business partnership
Alimony and child support
Crime victim’s compensation, veterans’, AFDC, social welfare, worker’s compensation and unemployment compensation benefits
60% of earned but unpaid wages (not less than $15 per week, plus $2 per week for each dependent) if you are a head of household with a family; 40% of earned but unpaid wages (not less than $10 per week) if you are not a head of household with a family

Please remember that these items and amounts are subject to change and may not be accurate at the time you read this post. To find out what the current exemptions and amounts are, please contact a Michigan bankruptcy law firm or an official Michigan state bankruptcy website.