Federal vs. State Bankruptcy Exemptions
Michigan residents can choose either federal or state bankruptcy exemptions, but cannot choose both. If you file for bankruptcy in the state of Michigan you won’t lose all of your assets— another alternative could be to use the federal bankruptcy exemptions.
Federal Bankruptcy Exemptions
Property that can be protected under federal exemptions include:
- Personal Property
- This includes cap amounts for property such as vehicles, jewelry, household goods, tools of your trade, health aids, and more.
- Support of Benefits
- Spousal or child support that you reasonably need
- Life insurance
- Social security, unemployment, veteran’s, and disability benefits
- Personal Injury Recovery
- Retirement Account Protections
Michigan State Exemptions
Property that can be protected under Michigan state exemptions - that are subject to varying cap amounts - include:
- Home Equity (up to a limited amount)
- Motor Vehicle (up to a limited amount)
- Personal property— including household goods and jewelry
- Public Benefits
- Tools of your trade or profession
These exemptions are only examples of what you can expect, but because your case is unique to you meeting with an experienced bankruptcy attorney is the best way to put together a plan for filing.
Put your future in your hands
If you're interested in finding freedom from your debts and stopping creditor harassment, during your free consultation we'll conduct a thorough analysis of your financial situation to help you decide if filing for bankruptcy is your most effective solution. We'll thoroughly explain your rights under Bankruptcy Law and explain the advantages and disadvantages of your available options.