How Much Property Can I Exempt?

When filing for bankruptcy in the state of Michigan you will have two sets of exemptions you can choose from. These sets are the federal exemptions and the state exemptions. Both exemptions dictate how much property you can exempt, but they differ as to what kind of property you can exempt and how much property you can exempt for each specific type of property. One important thing to keep in mind is that you can’t mix and match between different exemption amounts between the two sets of exemptions--you can only pick one set of exemptions when you file. It would therefore be advantageous for you to come up with a list of property you own and how much it’s worth, and then compare between both sets of exemptions to see which set would benefit you the most. In general here’s a quick comparison between the two:

State Exemptions:

Homestead exemption: $40,475 (up to $60,725 if you are older than 65, unlimited if you own home with spouse)

Vehicle exemption: $3,725

Household goods: $4,050

Tools of trade: $2,550

Federal Exemptions:

Homestead exemption: $25,150 (up to $12,575 that isn’t used for this exemption can be added to the wildcard exemption)

Vehicle exemption: $4,000

Household goods: $13,000

Tools of trade: $2,525

Jewelry: $1700

Wildcard exemption: $1,325 (can be up to $13,900 if using leftovers from homestead exemption)

If you are concerned about which set of exemptions would benefit you the most, it would be to your advantage to set up a consultation with a local bankruptcy attorney in order to better understand your options.