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Bankruptcy in Michigan: Exemptions and Filing Guide

State-specific bankruptcy exemptions and filing information for Michigan. These exemptions determine what property you can keep when filing Chapter 7 bankruptcy.

Data last updated: Jan 15, 2025

Key Takeaways

  • Homestead exemption: $44,625 (up to 40 acres in city, 160 acres elsewhere).
  • Vehicle exemption: $3,575.
  • Federal exemptions available — you can choose state or federal.
  • Attorney fees: $1,200–$2,000 (Ch. 7) / $3,000–$4,500 (Ch. 13) typical.
$44,625 (up to 40 acres in city, 160 acres elsewhere) Homestead exemption
$3,575 Vehicle exemption
Yes Federal option
$338 (Chapter 7) / $313 (Chapter 13) Filing fee

Michigan Bankruptcy Exemptions

  • Homestead$44,625 (up to 40 acres in city, 160 acres elsewhere)
  • Vehicle$3,575
  • Personal property$600 per item household goods; up to $5,075 total
  • Wildcard$1,325 plus up to $12,575 of unused homestead
  • Federal exemptionsAvailable (can choose)

Means Test: Michigan Median Income

To qualify for Chapter 7 in Michigan, your income must be below the state median or you must pass the means test showing no disposable income for creditors.

  • 1 person$57,800
  • 2 people$71,800
  • 3 people$83,200
  • 4 people$97,600

Filing Costs

  • Court filing fee$338 (Chapter 7) / $313 (Chapter 13)
  • Typical attorney fee$1,200–$2,000 (Ch. 7) / $3,000–$4,500 (Ch. 13)
  • Court districtsEastern and Western Districts of Michigan

Michigan bankruptcy court

Related Resources

Frequently Asked Questions

  • Can I choose between federal and state exemptions in Michigan?

    Yes. Michigan allows debtors to choose between the state and federal exemption systems.

  • What is Michigan's homestead exemption?

    Under state law, the homestead exemption is $44,625. Under federal exemptions, it is approximately $27,900.

  • How does Michigan's wildcard work?

    Michigan's state wildcard allows $1,325 in any property plus up to $12,575 of any unused homestead exemption amount.

  • Can I file bankruptcy to stop a car repossession in Michigan?

    Yes. Filing for bankruptcy triggers an automatic stay that temporarily halts repossession. Chapter 13 allows you to catch up on past-due payments.

Legal Disclaimer: FreeNetLaw provides general legal information, not legal advice. The information on this site is not a substitute for consultation with a licensed attorney. Laws vary by jurisdiction and change frequently. Always verify information with official sources and consult a qualified attorney for advice about your specific situation.

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