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What are bankruptcy exemptions in Michigan?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Michigan provides flexibility by allowing the choice between state and federal exemptions, with state exemptions adjusted every 3 years.

1. Choice Between State and Federal

Michigan did not opt out. Debtors may choose either Michigan state exemptions (MCL 600.5451) or federal exemptions (11 U.S.C. § 522(d)).

2. Michigan Homestead — MCL 600.5451(1)(m)

  • $44,800 for individuals (2024-2026).
  • $67,150 if debtor is 65+ or disabled, or if joint with deceased spouse.
  • Adjusted every 3 years for CPI.

    • 3. Michigan Motor Vehicle — MCL 600.5451(1)(g)

  • $4,000 equity in one motor vehicle.

    • 4. Michigan Personal Property — MCL 600.5451(1)

  • Household goods, furniture, appliances, jewelry, books, family pictures: $750 per item, $4,475 aggregate (subsection (c)).
  • Computers and accessories — § 5451(1)(j): $750.
  • Pew in church: $750 (charming relic of older statute).
  • Cemetery plots: unlimited.
  • Crops, farm animals, feed: $3,375.
  • Tools of trade — § 5451(1)(i): $3,375 (single profession).

    • 5. Wildcard

    Michigan state exemptions have NO general wildcard — major reason debtors choose federal.

    6. Federal Exemption Comparison — 11 U.S.C. § 522(d)

  • Homestead: $27,900 (less than MI state).
  • Wildcard: $1,475 + up to $13,950 unused homestead = up to $15,425. HUGE advantage for renters and low-equity homeowners.
  • Motor vehicle: $4,450 (slightly more than MI state).

    • 7. Wages — MCL 600.5311

    40-60% of weekly earnings exempt depending on family situation (head of household = 60% protection up to certain caps).

    8. Retirement Accounts — MCL 600.6023(1)(k)

  • ERISA-qualified plans, IRAs, Roth IRAs: fully exempt.
  • Annuities under MCL 500.2207: fully exempt.

    • 9. Insurance — MCL 500.2207, 500.4054

    Life insurance, fraternal benefits — fully exempt.

    10. Public Benefits — MCL 600.6023

    Social Security, unemployment, workers' comp, veterans', public assistance — fully exempt.

    11. Tenancy by the Entirety

    Michigan recognizes — property jointly held by spouses with right of survivorship exempt from individual creditors.

    12. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3).

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You're a renter or have minimal home equity — federal exemptions' wildcard may be much better
    • You're 65+ or disabled and qualify for the higher MI homestead
    • You and your spouse own property as tenants by the entirety
    Related Statutes & Laws
    • MCL 600.5451
    • MCL 600.5311
    • MCL 600.6023
    • 11 U.S.C. § 522(d)

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.