Bankruptcy Exemptions in Michigan
What property you can keep in bankruptcy in Michigan: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Filers may choose either the federal bankruptcy exemptions in 11 U.S.C. 522(d) or Michigan's bankruptcy-specific exemption list in MCL 600.5451 (which a debtor may use "under 11 USC 522(b)(2)"). 11 U.S.C. 522(b)(1)-(3); MCL 600.5451(1)
| State or federal exemptions | Filers may choose either the federal bankruptcy exemptions in 11 U.S.C. 522(d) or Michigan's bankruptcy-specific exemption list in MCL 600.5451 (which a debtor may use "under 11 USC 522(b)(2)"). No Michigan statute denying the federal exemptions was identified. Under 11 U.S.C. 522(b)(2), the federal list applies unless state law "specifically does not so authorize." Spouses filing together must both use the same system. Which state's exemptions apply depends on where the filer was domiciled for the 730 days before filing (522(b)(3)(A)). |
|---|---|
| Homestead exemption | Under MCL 600.5451: $51,150 for cases filed on or after April 1, 2026 ($76,725 if the debtor or a dependent is 65 or older or disabled); statutory base $30,000 / $45,000. A homestead is a dwelling and its land up to 40 acres outside a recorded plat, city or village, or one lot inside one. Statute text: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-5451. 2026 adjusted amounts from the Michigan Treasurer's notice dated January 30, 2026 (MCL 600.5451(4)); adjusted amounts apply to cases filed on or after April 1 following the adjustment date (April 1, 2026). Notice: https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/ORTA/Economic-Reports-Notices/FY-2026/Bankruptcy-Notice_-March-2026-Signed.pdf |
| Car exemption | One motor vehicle: $4,725 for cases filed on or after April 1, 2026 (statutory base $2,775). 2026 adjusted amounts from the Michigan Treasurer's notice dated January 30, 2026 (MCL 600.5451(4)); adjusted amounts apply to cases filed on or after April 1 following the adjustment date (April 1, 2026). Notice: https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/ORTA/Economic-Reports-Notices/FY-2026/Bankruptcy-Notice_-March-2026-Signed.pdf |
| Wildcard exemption | None. Michigan's bankruptcy exemption list (MCL 600.5451) has no general exemption for property of the filer's choosing. Source: MCL 600.5451(1) |
| Retirement accounts | All IRAs and Roth IRAs (and their distributions) are exempt, except portions subject to divorce or child support orders and contributions made within 120 days before filing. Interests in 401 qualified pension, profit-sharing and stock bonus plans and 403(b) annuities are also exempt, with similar exceptions. Source: MCL 600.5451(1)(k)-(l) |
| Wages | MCL 600.5451's bankruptcy exemption list does not include an exemption for earned but unpaid wages. A filer who chooses the federal list may use its exemptions instead; wage garnishment outside bankruptcy is governed by court rule and federal limits. Source: MCL 600.5451(1) |
More Michigan bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Michigan?
Filers may choose either the federal bankruptcy exemptions in 11 U.S.C. 522(d) or Michigan's bankruptcy-specific exemption list in MCL 600.5451 (which a debtor may use "under 11 USC 522(b)(2)").
How much home equity is protected in bankruptcy in Michigan?
Under MCL 600.5451: $51,150 for cases filed on or after April 1, 2026 ($76,725 if the debtor or a dependent is 65 or older or disabled); statutory base $30,000 / $45,000. A homestead is a dwelling and its land up to 40 acres outside a recorded plat, city or village, or one lot inside one.
Can I keep my car in bankruptcy in Michigan?
One motor vehicle: $4,725 for cases filed on or after April 1, 2026 (statutory base $2,775).
Does Michigan have a wildcard exemption?
None. Michigan's bankruptcy exemption list (MCL 600.5451) has no general exemption for property of the filer's choosing.
Are retirement accounts protected in bankruptcy in Michigan?
All IRAs and Roth IRAs (and their distributions) are exempt, except portions subject to divorce or child support orders and contributions made within 120 days before filing. Interests in 401 qualified pension, profit-sharing and stock bonus plans and 403(b) annuities are also exempt, with similar exceptions.
Are wages protected in bankruptcy in Michigan?
MCL 600.5451's bankruptcy exemption list does not include an exemption for earned but unpaid wages.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.