Michigan Bankruptcy Exemptions
What property can you keep when filing Chapter 7 in Michigan?
Federal exemption option available: Michigan allows debtors to choose between state exemptions or the federal bankruptcy exemption schedule. You must pick one complete set.
Michigan Homestead Protection
$40,475
Michigan protects up to $40,475 of equity in your primary residence from creditors.
Michigan Exemption Table
2025/2026 figures — Chapter 7 bankruptcy
How to Claim Exemptions in Michigan
To claim your Michigan bankruptcy exemptions, you must list each exempt asset on Schedule C of your bankruptcy petition. You may choose between Michigan's state exemptions or the federal bankruptcy exemptions — you cannot mix and match. A bankruptcy preparer can help you determine which set of exemptions better protects your assets — all claims are subject to court approval.
How does Michigan compare to other states?
Use the side-by-side comparison tool to see which state offers more protection for your assets.
Frequently Asked Questions
How much home equity can I protect in Michigan bankruptcy?
Michigan's homestead exemption protects up to $40,475 of your home's equity. If your equity exceeds this amount, the Chapter 7 trustee may sell your home — though in practice, most filers don't exceed this limit.
Can I keep my car when filing bankruptcy in Michigan?
Michigan's vehicle exemption protects up to $3,725 in car equity. If your car is worth less than this (or your equity after the loan balance is within this limit), you can typically keep it. If you're financing the car, you may also reaffirm the debt to keep it regardless of equity.
Are retirement accounts protected in Michigan bankruptcy?
Yes — Michigan protects Unlimited in qualified retirement accounts. This includes 401(k), 403(b), IRA, and pension accounts. Retirement assets are among the strongest-protected assets in bankruptcy across all 50 states.
Ready to take the next step?
Check If You Qualify for Chapter 7 in Michigan
Run the free qualification check to see if your income is below the Michigan median threshold. Takes under 5 minutes.
Check My EligibilityFree · No attorney required · Results in minutes
Non-Attorney Notice: JustiPal™ is a document preparation service — not a law firm. Exemption amounts shown are for educational purposes and reflect general 2025/2026 figures. Individual results depend on your specific assets, equity calculations, and applicable state law. Consult a licensed bankruptcy attorney for legal advice specific to your situation.