Bankruptcy in Michigan

$51,150 in equity, or $76,725 if you or a dependent is 65 or older or disabled (cases filed on or after April 1, 2026).

The amount covers the interest of you, any co-debtor and your dependents together. A homestead can be a house with up to 40 acres outside a city or platted area (one lot inside), a condo, a co-op unit, a mobile or manufactured home, a motor home, or a boat you live in. 'Disabled' means receiving SSI for disability.

Law: Mich. Comp. Laws 600.5451(1)(m), (5)(b), (5)(d)

$31,575

Law: 11 U.S.C. 522(d)(1)

$4,725 in one motor vehicle (cases filed on or after April 1, 2026).

Law: Mich. Comp. Laws 600.5451(1)(g)

$5,025

Law: 11 U.S.C. 522(d)(2)

Household goods, furniture, utensils, books, appliances and jewelry: up to $775 per item and $5,125 total. Also: family pictures, clothing (not furs), health aids, 6 months of food and fuel, household pets up to $875, and one computer with accessories up to $875 (cases filed on or after April 1, 2026).

Law: Mich. Comp. Laws 600.5451(1)(a), (b), (c), (f), (h)

Household goods: $800 per item, $16,850 total

Jewelry for personal or family use: $2,125

Law: 11 U.S.C. 522(d)(3); 11 U.S.C. 522(d)(4)

$1,675 plus up to $15,800 of any unused part of the (d)(1) homestead amount

Law: 11 U.S.C. 522(d)(5)

$3,400 in tools, materials, stock and equipment for your main trade or business (cases filed on or after April 1, 2026).

Law: Mich. Comp. Laws 600.5451(1)(i)

$3,175

Law: 11 U.S.C. 522(d)(6)

IRAs and Roth IRAs and ERISA-covered 401 plans and 403(b) annuities are exempt, but not money put in within 120 days before you file, and not amounts subject to a divorce, separate maintenance or child support order.

Law: Mich. Comp. Laws 600.5451(1)(k), (1)(l)

No dollar limit (IRAs are capped under 522(n))

Money in traditional and Roth IRAs is protected up to $1,711,975 in total.

Law: 11 U.S.C. 522(d)(12); 11 U.S.C. 522(n); 90 FR 8941

Disability benefits paid by an insurance company because of injury or sickness are exempt (except for necessities bought after the benefits began).

Law: Mich. Comp. Laws 600.5451(1)(j)

Your right to receive Social Security, unemployment, public assistance, veterans' and disability benefits; alimony and support you reasonably need; and certain pension or annuity payments you reasonably need: No dollar limit (some only as much as you reasonably need)

Your right to certain payments: crime victim awards, wrongful-death and life-insurance payments for someone you depended on, personal bodily injury payments (not pain and suffering or actual money losses), and payments for lost future earnings: Crime-victim awards: no limit. Personal injury payment: up to $31,575. Others: as much as you reasonably need

Law: 11 U.S.C. 522(d)(10); 11 U.S.C. 522(d)(11)

• Property owned by a married couple as tenants by the entirety, except against a joint debt of both spouses.
• Crops, farm animals and feed: up to $3,400.
• A seat, pew or slip in a place of worship: up to $875.
• Burial plots and cemetery rights for your family.

Law: Mich. Comp. Laws 600.5451(1)(n); Mich. Comp. Laws 600.5451(1)(e), 2026 amount; Mich. Comp. Laws 600.5451(1)(d), 2026 amount; Mich. Comp. Laws 600.5451(1)(a)(iv)

An unmatured life insurance policy you own (not credit life insurance): No dollar limit

Cash value of life insurance: $16,850

Health aids prescribed by a professional for you or a dependent: No dollar limit

Law: 11 U.S.C. 522(d)(7); 11 U.S.C. 522(d)(8); 11 U.S.C. 522(d)(9)