Common Michigan Exemptions

Some of the more commonly used Michigan exemptions are listed below. All law references are to the Michigan Compiled Laws unless otherwise indicated.

Note: The dollar amounts for many of the below exemptions will change on April 1, 2014. It may take several days to update this article. To get up-to-date dollar figures that will apply if you file your bankruptcy case on or after April 1, 2014, see Michigan Bankruptcy Exemption Amounts to Increase on April 1, 2014.)

Homestead Exemption

The homestead exemption protects the equity that you have in your residence up to $37,775 (if you are over 65 or disabled the limit is $56,650). 600.5451(1)(n).

Motor Vehicle Exemption

The motor vehicle exemption protects equity that you have in your vehicle up to $3,475. This exemption can only be applied to one vehicle. 600.5451(1)(g).

Household Goods and Personal Property

This exemption protects your household goods such as furniture, utensils, books, appliances, and jewelry valued up to $600 per item and $3,775 total. 600.5451(1)(c). In addition:

There is no limit as to the amount of clothing that you can keep. 600.5451(1)(a)(iii).
Computer accessories are protected up to $650. 600.5451(1)(n).
There is no limit to the amount of family pictures that you can keep. 600.5451(1)(a)(i).

Pension and Retirement Accounts

Most pension and retirement accounts are completely protected with a few exceptions.

Individual Retirement Accounts and Annuities are fully protected with the exception of amounts that are contributed within the 120 days prior to filing for bankruptcy. 600.5451(1)(l).
Traditional, Simple, or Roth IRA’s are protected up to $1,245,475. (This amount is adjusted every three years. For the most recent figure, see Your Retirement Account in Bankruptcy.) 11 U.S.C. § 522(b)(3)(C)(n). Education IRA’s are protected up to $6,225. 11 U.S.C. §541(b)(5)(c).
A pension, profit sharing, stock bonus, or other qualified plan is fully protected with the exception of amounts contributed in the 120 days prior to filing. 600.5451(1)(l).

Wages

You can protect up to 60% of earned but unpaid wages for head of household and up to 40% for others. The head of household can keep at least $15 per week plus $2 per week for each dependent other than the spouse and $10 per week for others. 600.531.
Insurance Benefits

Insurance benefits are fully protected regardless of the amount. 500.2207. Benefits paid on behalf of an employer are fully protected. 500.2210. Benefits paid by any stock, mutual life, health, or casualty insurance are also fully protected. 600.5451(1)(i).

Public Benefits

The public benefits listed below are fully protected regardless of the amount received.

Crime victims’ compensation (18.362)
Unemployment compensation (421.30)
Korean War veterans’ benefits (35.977)
Vietnam War veterans’ benefits (35.1027)
Welfare benefits (400.63)
Worker’s compensation benefits (418.821)

Tools of Trade

Your interest in the tools, implements, materials, stock, and other items necessary to carry on your profession, trade, occupation, or business is protected up to $2,525. 600.5451(1)(i).
Researching Exemption Statutes