Michigan Bankruptcy Exemption Statutes
NOTE: Federal Bankruptcy exemptions ARE available for Michigan filers. But filers must claim either federal bankruptcy exemptions or state ones – no mixing and matching between the two systems.
State law dictates that bankruptcy exemptions amounts be adjusted for inflation every 3 years, starting in 2005. The Michigan Department of the Treasury makes these adjustments – the most recent year is 2008. The amounts listed in the individual statutes are not current – to see the current list, you can download a PDF: or search the web for “Property Debtor in Bankruptcy May Exempt, Inflation Adjusted Amounts.”
Homestead
$34,450 of real property, including a condo; $51,650 if filer is over 65 years of age OR disabled. Limited to one lot in town, village or city, or 40 acres elsewhere. The spouse or child of a deceased owner may file for a homestead exemption. Property that is held as a tenancy by the entireties (i.e. a form of joint ownership of property between spouses) may be exempt for debts owned only by one spouse.
Personal Property
The following personal property may be exempt, either wholly or up to the dollar amount given:
- $3,715 for one (1) vehicle
- $525 each, for total of $3,450, of appliances, utensils, books, furniture and other household goods
- $575 for church pew/slip/seat for entire family
- $575 for computers and accessories
- $575 for household pets
- $2,300 for crops, livestock/farm animals, and feed
- $1,150 par value of building & loan association shares, if no homestead exemption is claimed
- Burial plot, cemeteries
- Health aids prescribed by professionals
- Clothing and family pictures
- Food and fuel to last the filer’s family for 6 months
Insurance
- Life insurance
- Life, endowment or annuity proceeds, if policy includes a clause prohibiting proceeds from being used to pay the creditors of the beneficiary
- Employer-sponsored life insurance policy or trust fund
- Disability, mutual life or health benefits
- Fraternal benefit society benefits
Pensions (note: tax-exempt retirement accounts such as 401(k)s, 403(b)s, defined benefit plans, and traditional and Roth IRAs up to $1,095,000 are exempt under federal law)
- ERISA-qualified benefits, except for contributions made within the last 120 days prior to filing
- IRAs & Roth IRAs, except for contributions made within the last 120 days prior to filing
- Pensions for the following occupations are exempt under MI law:
- Firefighters, police officers
- Judges
- Legislators
- Probate judges
- Public school employees
- State employees
- Social welfare benefits
- Crime victims’ compensation
- Unemployment benefits
- Veteran’s benefits for veterans of the following wars: WWII, Korean War, Vietnam War
Miscellaneous
- Wages:
- Head of household – 60% of earned but unpaid wages (minimum $15 per week), plus $2 per non-spouse dependent.
- Non-head of household – 40% of earned but unpaid wages (minimum $10 per week)
- Arms & accoutrements required
- $2,300 of tools, implements, materials, stock, apparatus or other items required to carry on one’s occupation
- Property of business partnership
The Michigan Code, including laws related to exemptions, is available here. Links to specific sections regarding state exemptions follow below.
Please note: Laws may have changed since our last update. For the latest publication, please visit the state legislature sites directly, or speak with a bankruptcy attorney near you.
Real Property
Michigan Code Chapter 600.5451(1)(o) - Homestead: Property as tenancy by the entirety may be exampt against debts owed by the only one spouse
Michigan Code Chapter 600.5451(1)(n) - Homestead: Real property including condo up to $34,450 ($51,650 if over 65 or disabled); property cannot exceed 1 lot in town, village, city, or 40 acres elsewhere; spouse or children of deceased owner may claim homestead exemption; spouses or unmarried co-owners may not double. Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Personal Property
Michigan Code Chapter 449.25 Propety of business partnership
Michigan Code Chapter 600.5451(1)(c) Appliances, utensils, books, furniture and houshold goods to $525 each, $3,450 total Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code Chapter 600.5451(1)(k) Building and loan association shiares to $1,150 par value, in lieu of homestead Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code Chapter 600.5451(1)(a)(vii) Burial plots, cemeteries
Michigan Code Chpater 600.5451(1)(d) Church pew, slip, seat for entire family to $575 Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code Chapter 600.5451(1)(a) Clothing, family pictures
Michigan Code Chapter 600.5451(1)(b) Food and fuel to last family for 6 months
Michigan Code Chapter 600.5451(1)(e) Crops, animals and feed to $2,300 Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code Chapter 600.5451(1)(g) 1 motor vehicle to $3,174 Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code Chapter 600.5451(1)(h) Computer and accessories to $575 Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code 600.5451(1)(f) Household pets to $575 Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code 600.5451(a) Professionally prescribed health aids
Michigan Code 600.6023(1)(a) - Tools of Trade: Arms and accoutrements required
Michigan Code 600.5451(1)(i) - Tools of Trade: Tools, implements, materials, stock, apparatus, or other things needed to carry on occupation to $2,300 total Note: It is strongly recommended that you check the Michigan Code at the state legislature site as under Michigan law, certain exemption amounts are adjusted for inflation every 3 years.
Michigan Code 600.5311 - Wages: Head of household may keep 60% of earned but unpaid wages (no less than $15/week), plus $2/week per nonspouse dependent; if not head of household may keep 40% (no less than $10/week)
Insurance Exemptions
Michigan Code Chapter 600.5451(1)(j) Disability, mutual life, or health benefits
Michigan Code Chapter 500.2210 Employer-sponsored life insurance policy or trust fund
Michigan Code Chapter 500.8181 Fraternal beneifts society benefits
Michigan Code Chapter 500.4054 Life, endowment, or annuity proceeds if clause prohibits proceeds from being used to pay beneficiary's creditors
Michigan Code Chapter 500.2207 Life insurance
Retirement Benefits
Michigan Code Chapter 600.5451(1)(m) - Pensions: ERISA qualified benefits, ecept contributiosn within the last 120 days
Michigan Code Chapters 38.559(6), 38.1683 - Pensions: firefighters, police officers
Michigan Code Chapter 600.5451(1)(l) - Pensions: IRAs and Roth IRAs except contributions within the last 120 days
Michigan Code Chapters 38.2308, 38.1683 - Pensions: Judges
Michigan Code Chapters 38.1057, 38.1683 - Pensions: Legislators
Michigan Code Chapters 38.2308, 38.1683 - Pensions: Probate Judges
Michigan Code Chapters 38.1346, 38.1683 - Pensions: Public school employees
Michigan Code Chapters 38.40, 38.1683 - Pensions: State employees
Public Benefits
Michigan Code 18.362 Crime victims' compensation
Michigan Code 400.63 Social welfare benefits
Michigan Code 421.30 Unemployment compensation
Michigan Code 35.977 Veterans' benefits for Korean War veterans
Michigan Code 35.1027 Veterans' benefits for Vietnam veterans
Michigan Code 35.926 Veterans' benefits for WWII veterans
Michigan Code 418.821 - Public Benefits: Workers' compensation