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Michigan Bankruptcy Laws

Key Point

Not all states allow the federal bankruptcy exemptions. Though Michigan has its own bankruptcy laws, the residents are allowed to use either state or federal exemption limits.

Homestead

  • Exemptions are allowed for real properties, including condominium, up to a limit of $35,500.
  • The limit exceeds for the elderly (above 65) and the disabled to $53,925.
  • The property may not exceed 1 lot in a city, town or village or 40 acres elsewhere.
  • Spouses and children of the deceased owner can claim for homestead exemptions. However, spouses or unmarried co-owners of the property may not be able to ‘double’ the exemption amount.

Wage garnishment

Head of household may keep 60% of earned but unpaid wages, whereas others are allowed an exemption of 40%.

The permissible minimum is $15 per week plus $2 per week for each dependent other than the spouse for the head of household; $10 per week for others.

Automobiles

$3,250 of value can be exempted for a single motor vehicle

Personal Property

Clothing, appliances, utensils, books, furniture and household goods can be exempted $550 each, up to a maximum of $3,525 in total.

Food

Food and fuel to last for 6 months

Professional equipment

Tools of trade, implements, materials, stock, apparatus, or other things needed to carry on occupation are exempted to a total of $2,350

Other exemptions

  • Building & loan association shares to $1,175 par value, in lieu of homestead
  • 1 computer & accessories worth to an extent of $600
  • Crops, farm animals, and feed for the farm animals to $2,350
  • Household pets allowed up to $600 exemption in value
  • Church pew, slip, seat for entire family equal to $600

Wildcard exemptions

Wildcard exemptions for any property of choice are not allowed in the state.

Total or Absolute Exemptions

  1. Specific partnership benefits.
  2. Burial plot and church pew.
  3. Judges' retirement benefits.
  4. Legislative retirement benefits.
  5. Equity of redemption.
  6. Municipal employee's retirement benefits.
  7. Legislative retirement benefits.
  8. IRC qualified retirement schemes.
  9. Public school employee's retirement benefits.
  10. Unemployment compensation benefits.
  11. Fraternity and society benefits.
  12. Worker's compensation benefits.
  13. Proceeds of annuity contracts.
  14. Group life and disability insurance benefits.
  15. Proceeds and avails of disability insurance policies.
  16. Contribution to medical savings account.
  17. Pension or annuity benefits of retired employees.
  18. Retirement or annuity funds of any person.

Eastern District of Michigan

Bay City

Street Address

United States Courthouse

111 First Street

Bay City, Michigan 48708

Contact Number:

989-894-8840

Working Hours:
Monday-Friday

8.30 a.m. to 4.00 p.m. (excluding Federal Holidays)

Detroit (Main Office)

Street Address

US Bankruptcy Court

Eastern District of Michigan

211 West Fort Street, Suite 2100

Detroit, Michigan 48226

Contact Number:

313-234-0068

Working Hours:
Monday-Friday

8.30 a.m. to 4.00 p.m. (excluding Federal Holidays)

Flint

Street Address

Goodyear Building

226 West Second Street

Flint, Michigan 48502

Contact Number:

810-235-4126

Working Hours:
Monday-Friday

8.30 a.m. to 4.00 p.m. (excluding Federal Holidays)

Western District of Michigan

Grand Rapids (Main office)

Street Address

U.S. Bankruptcy Court, WDMI

One Division Avenue, North

Room # 200

Grand Rapids, MI 49503-3132

Contact Number:

616-456-2693

Working Hours:
Monday-Friday

8:00 a.m. To 4:00 p.m. (excluding Federal Holidays)

Marquette

Street Address

United States Post Office and Federal Courthouse

202 West Washington Street, 3rd Floor

Marquette, MI 49855-4036

Contact Number:

906-226-2117

Working Hours:
Monday-Friday

8:00 a.m. to 4:00 p.m. (excluding Federal Holidays)

Kalamazoo

Street Address

U.S. Courthouse & Federal Building

410 West Michigan Avenue

Room 114

Kalamazoo, MI 49007

Working Hours:
Monday-Friday

8:00 a.m. to 4:00 p.m. (excluding Federal Holidays)

Lansing

Street Address

U.S. Post Office & Federal Courthouse

315 West Allegan Street,

Room 101

Lansing, MI 48933

Working Hours:
Monday-Friday

8:00 a.m. to 4:00 p.m. (excluding Federal Holidays)

Traverse City

Street Address

Logan Place West

3249 Racquet Club Drive

Traverse City, MI 49684

Working Hours:
Monday-Friday

8:00 a.m. to 4:00 p.m. (excluding Federal Holidays)



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