Michigan Bankruptcy

If you live in Michigan and are considering filing Chapter 7 bankruptcy, you may want to fully understand the state’s laws.

Filing chapter 7 is designed to eliminate your debt, and protect your property. For many, it’s a fresh financial start, but getting to that point may be complicated.

Learn more about Michigan’s laws here, or speak with a local bankruptcy attorney.

For a free Chapter 7 case evaluation, complete the free form on this page and we’ll put you in touch with a local lawyer right away.

Filing Chapter 7 Bankruptcy in Michigan

Chapter 7 bankruptcy is available in all states, but the process is slightly different in each.

Like all states, Chapter 7 in Michigan is designed to quickly clear all your unsecured debt. Unsecured debt includes credit card and medical bills, as well as personal loans.

In exchange for eliminating this debt, your creditors may have the right to a liquidation sale of non-exempt property. However, Michigan bankruptcy law provides extensive Chapter 7 exemptions, which may play a big role in protecting your property during your case.

Michigan Bankruptcy Exemptions

The following provides basic information about Michigan Chapter 7 exemptions. These outline the amounts and types of property fully protected when you file bankruptcy. To get more detailed information about your particular case, contact a Michigan bankruptcy attorney.

Homestead:

• $30,000 for your residence.
• $45,000 if debtor is 65-years-old or older or disabled.

Wages:

• Up to 60 percent of wages, but not less than $15 per week, for householders with family.
• Up to 40 percent of wages, but not less than $10 per week, for anyone else.

Vehicles: Up to $2,775 for one vehicle.

Personal Property:

• 100 percent of family pictures, clothing, fuel for six months, burial plots, health aids.
• Up to $450 per item, with a total value of no more than $3,000, for household goods, furniture, utensils, books and appliances.
• $500 in value of a church pew.
• $2,000 in value of crops, farm animals and feed.
• $500 in value of household pets.
• $500 in value of one computer and accessories.
• $2,000 in value of tools, implements, materials and other things to enable a person to carry on a profession.
• 100 percent of worker’s compensation, unemployment and ex-servicemen’s benefits.

Questions? Talk to a Michigan Chapter 7 Bankruptcy Lawyer

Michigan Chapter 7 bankruptcy exemptions can sometimes cause confusion. Be sure you take full advantage of the debt relief and property protection opportunities offered.

Get a free case evaluation with a local Michigan bankruptcy lawyer. Complete the form on this page or call, toll free, 877-226-6844, and we’ll connect you right away.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state’s bankruptcy laws, speak to a local bankruptcy lawyer.