Exemptions: What Property You Can Keep if You File For Bankruptcy In Michigan?

Exempt property is a property that you can keep after filing for bankruptcy. Maximizing your exemptions will allow you to keep the maximum amount of property. In Michigan, the debtor is free to use either Michigan exemptions or federal exemptions. Most debtors or lawyers are using federal exemptions. Exemptions allow the debtor to keep his or her property as may allowed by law. What are those exemptions

 Real Property (your home):        You can protect up to $25,150 of equity in your principal place of residence under the federal exemptions under  (11 U.S.C. § 522(d)(1).)  The residential property can be:

• a house or another dwelling, such as a condominium, or
• personal property used as a residence (such as a residential trailer).

Personal property

Anything you own that is not your house or land is considered personal property.

Motor Vehicle - § 522(d)(2)  ---------------------------- $4,000

Household Goods - § 522(d)(3) ----------------------- $625.00  Per Item

                                                                              $13,400.00 Total

Jewelry - § 522(d)(4)   ---------------------------------- $1,700.00

Wild Card - § 522(d)(5)----------------------------------$ 12,575.00

Tools of the Trade - § 522(d)(6)-----------------------$ 2,525.00

Unmatured Life Insurance - § 522(d)(8)------------$ 13,400.00

Personal Injury Claims - § 522(d)(11)(D)-----------$ 25,150.00

Tax-exempt retirement accounts, including 401(k)s are exempt without regard to their value. However, IRAs and Roth IRAs are capped at $1,283,025. Educational IRAs are exempt without regard to value.

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