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Michigan Bankruptcy Exemptions Updated

Effective April 1, 2010, the federal exemptions that you can use in your Michigan bankruptcy have changed. Exemptions are dollar allowances for real and personal property that you can keep when you file for bankruptcy in Michigan. The exemptions provide the basis for your fresh start. Here are the new exemption amounts:


522(d)(1) Real property, including mobile homes and co-ops, or burial plots up to $21,625. Unused portion of homestead, up to $11,975 (Wild Card) may be used for other property.

Personal Property:

522(d)(2) – Motor vehicle up to $3,450.

522(d)(3) – Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $550 per item, and up to $11,525 total.

522(d)(4) – Jewelry up to $1,450.

522(d)(5) – $1,150 of any property, and unused portion of homestead up to $11,975 (Wild Card).

522(d)(9) – Health aids.

522(d)(11)(B) – Wrongful death recovery for person you depended upon.

522(d)(11)(D) – Personal injury recovery up to $21,625 except for pain and suffering or for pecuniary loss.

522(d)(11)(E) – Lost earnings payments.


522(b)(3)(C) – Tax exempt retirement accounts; IRAs and Roth IRAs up to $1,171,650 per person.

Public Benefits:

522(d)(10)(A) – Public assistance, Social Security, Veteran’s benefits, Unemployment Compensation.

522(d)(11)(A) – Crime victim’s compensation

Tools of Trade:

522(d)(6) – Implements, books and tools of trade, up to $2,175.

Alimony and Child Support:

522(d)(10)(D) – Alimony and child support needed for support


522(d)(7) – Unmatured life insurance policy except credit insurance.

522(d)(8) – Life insurance policy with loan value up to $11,525.

522(d)(10)( C ) – Disability, unemployment or illness benefits

522(d)(11)( C ) – Life insurance payments for a person you depended on, which you need for support

If you have any questions about how the law for exemptions will affect your bankruptcy in Michigan, don’t hesitate to give me a call at (989) 233-9389.