Michigan Bankruptcy Exemptions

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 16, 2021

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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.

Current exemption amounts


United States Bankruptcy Court, Eastern District of Michigan

United States Bankruptcy Court, Western District of Michigan

Michigan Bankruptcy Attorneys


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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