Michigan Bankruptcy Exemptions

Michigan is a dual-choice state, meaning you can select **Michigan**-specific exemptions or **federal** exemptions when filing bankruptcy. Below is a summary of **Michigan** exemptions, referencing the **Michigan Compiled Laws** (MCL) and related sources. Always confirm these amounts and interpretations with a licensed attorney, as laws can change or be interpreted differently by the courts.

Asset / Type of PropertyExemption DescriptionStatute / CodeNotes
HomesteadReal property (including a condo) up to \$3,500equity; property cannot exceed 1 lot in a town/village/city or 40 acres in a rural area. Surviving spouse or child of deceased owner may claim. TBE (tenancy by the entirety) property may be exempt from debts owed by one spouse only.MCL 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)Michigan’s homestead exemption is relatively low compared to federal or some other states.
Disability, Mutual Life or Health BenefitsExempt from attachment/garnishment.MCL 600.6023(1)(f)
Fraternal Benefit Society BenefitsFully exempt.MCL 500.8181
Life, Endowment, or Annuity Proceeds (Anti-Creditor Clause)If policy specifically prohibits proceeds being used to pay beneficiary’s creditors.MCL 500.4054
Property of Business PartnershipExempt from individual partner’s creditors.MCL 449.25
Firefighters, Police OfficersExempt pension benefits.MCL 38.559(6)
ERISA-Qualified BenefitsGenerally exempt from attachment/garnishment.MCL 600.6023(1)(k)
IRAsExempt (In re Worthington case for guidance).MCL 600.6023(1)(l)Michigan code explicitly includes IRAs as exempt.
Judges, Legislators, Probate Judges, Public School Employees, State EmployeesExempt retirement benefits for these categories.MCL 38.825, 38.1057, 38.925, 38.1346, 38.40
Appliances, Utensils, Books, Furniture & Household GoodsUp to $1,000 total value.MCL 600.6023(1)(b)
Building & Loan Association Shares to \$1,000 (in lieu of homestead)If not claiming a homestead, you can claim these shares up to \$1,000.MCL 600.6023(1)(g)
Burial Plots, Cemeteries; Church Pew or SeatFully exempt.MCL 600.6023(1)(c)
Clothing; Family PicturesFully exempt.MCL 600.6023(1)(a)
2 Cows, 100 Hens, 5 Roosters, 10 Sheep, 5 Swine; Hay & Grain for 6 Months (If Head of Household)Specific agricultural items for sustaining the family.MCL 600.6023(1)(d)
Food & Fuel to Last 6 Months (Head of Household)Exempt quantity of food/fuel for half a year.MCL 600.6023(1)(a)
AFDCFully exempt.MCL 330.1158a
Crime Victims’ CompensationFully exempt.MCL 18.362
Social Welfare BenefitsFully exempt.MCL 400.63
Unemployment CompensationFully exempt.MCL 421.30
Veterans’ Benefits for Korean War, Vietnam War, WWII VeteransFully exempt.MCL 35.977 (Korean), 35.1027 (Vietnam), 35.926 (WWII)
Workers’ CompensationFully exempt.MCL 418.821
Arms & Accoutrements You’re Required to KeepFully exempt for service members.MCL 600.6023(1)(a)
Tools, Implements, Materials, Stock, Apparatus, Team, Motor Vehicle, Horse & Harness to \$1,000 total**\$1,000** total for items used in trade or profession.MCL 600.6023(1)(e)
Wages60% of earned but unpaid wages for head of household; otherwise 40%. Head of household keeps at least **\$15/week** + **\$2/week** per non-spouse dependent; others keep at least **\$10/week**.MCL 600.5311Exemption formula can be complicated; consult an attorney for precise calculations.
WildcardNone specified under Michigan law.--

Disclaimer

This information is for educational purposes only and does not constitute legal advice. Exemption amounts and statutes may be updated or interpreted differently by courts. Always consult a licensed Michigan bankruptcy attorney or refer to the official Michigan Compiled Laws to confirm exact amounts and current applicability.