What Creditors Can't Take in Michigan
Money, home and vehicle exemptions that protect your property from creditors in Michigan.
Short answer: No general bank account exemption. Specific funds are protected, such as Social Security, SSI, unemployment, workers' compensation, public assistance, IRAs and qualified retirement plans. MCL 600.6023; SCAO form MC 12 (list of exempt income)
| Money protected in a bank account | No general bank account exemption. Specific funds are protected, such as Social Security, SSI, unemployment, workers' compensation, public assistance, IRAs and qualified retirement plans. MCL 600.6023: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-6023 |
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| Homestead exemption | Outside bankruptcy, only $3,500 in value of a homestead (up to 40 acres, or one lot in a city or village) is exempt from execution. In bankruptcy, the Michigan homestead exemption is $51,150, or $76,725 if the debtor or a dependent is 65 or older or disabled, for cases filed on or after April 1, 2026. Property owned by a married couple as tenants by the entirety is exempt from a judgment against only one spouse. Bankruptcy amounts are adjusted for inflation every 3 years by the State Treasurer (MCL 600.5451(4)); 2026 notice: https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/ORTA/Economic-Reports-Notices/FY-2026/Bankruptcy-Notice_-March-2026-Signed.pdf (prior 2023 values $46,125 / $69,200). |
| Vehicle exemption | Outside bankruptcy, there is no separate car exemption; a vehicle used for work can be covered by the $1,000 tools-of-the-trade exemption. In bankruptcy, one motor vehicle is exempt up to $4,725 for cases filed on or after April 1, 2026. Inflation-adjusted every 3 years; the 2023 value was $4,250. MCL 600.5451: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-5451 |
| Bankruptcy exemptions | Michigan is not an opt-out state: a debtor in bankruptcy may choose the federal exemptions or Michigan's special bankruptcy exemption list in MCL 600.5451, whose dollar amounts are inflation-adjusted every 3 years. Source: MCL 600.5451(1), (4) |
Where to get help in Michigan
More Michigan debt & collections
- Statute of Limitations on Debt in Michigan
- Wage Garnishment in Michigan
- How to Respond to a Debt Collection Lawsuit in Michigan
- All Michigan debt & collections rules
FAQ
How much money in a bank account is protected from creditors in Michigan?
No general bank account exemption. Specific funds are protected, such as Social Security, SSI, unemployment, workers' compensation, public assistance, IRAs and qualified retirement plans.
What is the homestead exemption in Michigan?
Outside bankruptcy, only $3,500 in value of a homestead (up to 40 acres, or one lot in a city or village) is exempt from execution. In bankruptcy, the Michigan homestead exemption is $51,150, or $76,725 if the debtor or a dependent is 65 or older or disabled, for cases filed on or after April 1, 2026. Property owned by a married couple as tenants by the entirety is exempt from a judgment against only one spouse.
Can a creditor take my car in Michigan?
Outside bankruptcy, there is no separate car exemption; a vehicle used for work can be covered by the $1,000 tools-of-the-trade exemption. In bankruptcy, one motor vehicle is exempt up to $4,725 for cases filed on or after April 1, 2026.
Which bankruptcy exemptions can I use in Michigan?
Michigan is not an opt-out state: a debtor in bankruptcy may choose the federal exemptions or Michigan's special bankruptcy exemption list in MCL 600.5451, whose dollar amounts are inflation-adjusted every 3 years.
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.