Michigan Bankruptcy Exemptions

Michigan Bankruptcy Exemptions Whether you're filing a chapter 7 or a chapter 13, you are allowed to keep some of your possessions. The part of Michigan state law that allows this is called "exemptions." These vary from state to state, so you want to make sure you're using Michigan bankruptcy exemptions

State Exemptions - All law references are to Michigan Bankruptcy Code.

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
Homestead	Real property including condo to $3500; property cannot exceed 1 lot in town, village, city, or 40 acres elsewhere Spouse or child of deceased owner may claim homestead exemption Property held as tenancy by the entirety may be exempt against debts owed by only one spouse	559.214, 600.6023(1)(h), (I), 600.6023(3), 600.6027 SNB Bank & Trust v. Kensey, 378 N.W. 2d 594 (Ct. App.Mich. 1985)
Insurance	Disability, mutual life or health benefits Fraternal benefit society benefits Life, endowment or annuity proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors	600.6023(1)(f) 500.8181 500.4054
Miscellaneous	Property of business partnership	449.25
Pensions	Firefighters, police officers ERISA-qualified benefits IRAs Judges Legislators Probate Judges Public school employees State employees	38.559(6) 600.6023(1)(k) 600.6023(1)(l) 38.825 38.1057 38.925 38.1346 38.40
Personal property	Appliances, utensils, books, furniture & household goods to $1000 total Building & loan association shares to $1000 par value, in lieu of homestead Burial plots, cemeteries; church pew, slip, seat Clothing; family pictures 2 cows, 100 hens, 5 roosters, 10 sheep, 5 swine; hay & grain to last 6 months if you’re a head of household Food & fuel to last 6 months if you’re a head of household	600.6023(1)(b) 600.6023(1)(g) 600.6023(1)(c) 600.6023(1)(a) 600.6023(1)(d) 600.6023(1)(a)
Public benefits	AFDC Crime victim’s compensation Social welfare benefits Unemployment compensation Veterans’ benefits for Korean War veterans Veterans’ benefits for Vietnam veterans Veterans’ benefits for WWII veterans Workers’ compensation	330.1158a 18.362 400.63 421.30 35.977 35.1027 35.926 418.821
Tools of trade	Arms & accoutrements you’re required to keep Tools, implements, materials, stock, apparatus, team, motor vehicle, horse & harness to $1000 total	600.6023(1)(a) 600.6023(1)(e)
Wages	60% of earned but unpaid wages for head of household; else 40$; head of household may keep at least $15 per week plus $2 per week per non-spouse dependent; other may keep at least $10 per week	600.5311
WILD CARD	NONE

Federal Exemptions - All law references are to Michigan Bankruptcy Code.

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
Retirement Benefits	CIA employees	50 § 403
	Civil service employees	5 § 8346
	Foreign service employees	22 § 4060
	Military honor roll pensions	38 § 562
	Military service employees	10 § 1440
	Railroad workers	45 § 231m
	Social Security	42 § 407
	Veterans' benefits	38 § 3101
	Veterans' medal of honor benefits	38 § 562
Survivor's benefits	Judges, US court directors, judicial center directors, supreme court chief justice administrators	28 § 376
	Lighthouse workers	33 § 775
	Military service	10 § 1450
Death & Disability Benefits	Government employees	5 § 8130
	Longshoremen and harbor workers	33 § 916
	War risk hazard death or injury compensation	42 § 1717
Miscellaneous	Klamath Indian tribe benefits for Indians residing in Oregon	25 § 543, 25 § 545
	Military deposits in savings accounts while on permanent duty outside continental U.S.	10 § 1035
	Military group life insurance	38 § 770(g)
	Railroad workers' unemployment insurance	45 § 352(e)
	Seamen's clothing	46 § 1110
	Seamen's wages (while at sea) pursuant to a written contract	46 § 1111
	75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors	15 § 1673