Bankruptcy exemptions in Michigan: what you can keep

The Michigan exemption list, the homestead rule, which state's law applies and how to claim exemptions.

Checked against official sources: October 25, 2026.

Short answer

In Michigan you choose state or federal exemptions (exemptions are the property the law lets you keep). Your home (homestead): $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).

Exemption system: State or federal, your choice
Car or other vehicle: $4,725 in one motor vehicle (cases filed on or after April 1, 2026).
Amounts: Cases filed on or after April 1, 2026. Michigan Department of Treasury notice dated January 30, 2026; under Mich. Comp. Laws 600.5451(4) adjusted amounts apply to cases filed on or after April 1 after the adjustment.

What Michigan lets you keep

Exemptions are the property the law lets you keep. You pick one whole set: the Michigan list or the federal list. You can't mix them.

Law: Mich. Comp. Laws 600.5451(1); 11 U.S.C. 522(b)(1)-(2); 11 U.S.C. 522(d)

What	Michigan exemption	Federal exemption
Home (homestead)	$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)
Car or other vehicle	$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 and clothing	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)
Wildcard (any property)	—	$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)
Tools of your trade	$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)
Retirement accounts	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
Public benefits	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)
Other exemptions	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)

Amounts: Cases filed on or after April 1, 2026. Michigan Department of Treasury notice dated January 30, 2026; under Mich. Comp. Laws 600.5451(4) adjusted amounts apply to cases filed on or after April 1 after the adjustment. Next adjustment due in 2029.

Federal amounts: Amounts in effect for cases filed on or after April 1, 2025 (next automatic adjustment due April 1, 2028)

Law: 11 U.S.C. 104; 90 FR 8941-8942

These amounts are per person. If a married couple files one joint case, each spouse can claim the federal exemptions separately.

Keeping your home 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)

Recent changes in Michigan

Indexed increase for cases filed on or after April 1, 2026: homestead $46,125 to $51,150 ($69,200 to $76,725 for 65+/disabled); vehicle $4,250 to $4,725; household goods $4,625 to $5,125 total ($700 to $775 per item); tools $3,075 to $3,400; pets, computer and pew $800 to $875; crops/farm animals $3,075 to $3,400.

Retirement money

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)

Retirement money in tax-exempt accounts is protected whichever set of exemptions you use (IRAs subject to the 522(n) cap).

Law: 11 U.S.C. 522(b)(3)(C), 522(d)(12), 522(n)

Which state's law applies

You use the exemption law of the state where you lived (your domicile) for the full 730 days (2 years) before you filed. If you moved between states during those 2 years, you use the law of the state where you lived for the 180 days before that 2-year period, or where you lived the longest part of those 180 days.

Law: 11 U.S.C. 522(b)(3)(A)

If this rule leaves you with no exemptions at all (for example, the state's exemptions apply only to its residents and you no longer live there), you can use the federal exemptions instead.

Law: 11 U.S.C. 522(b)(3), flush language

Choosing a set in Michigan

In some states you can choose either the state exemptions or the federal exemptions. You must pick one whole set; you cannot mix them. Other states allow only the state exemptions. A married couple filing together must both pick the same set.

Law: 11 U.S.C. 522(b)(1)-(2); Mich. Comp. Laws 600.5451(1); 11 U.S.C. 522(d)

In nearby states

Wisconsin: State or federal, your choice. Home (homestead): up to $75,000 per person in your home and the land reasonably needed for it: at least 0.25 acre if available, up to 40 acres.
Ohio: State exemptions only. Home (homestead): $182,625 in equity in one parcel or item of real or personal property that you or a dependent use as a residence (a house, condo or mobile home).
Indiana: State exemptions only. Home (homestead): $22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in.
Illinois: State exemptions only. Home (homestead): $50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op).

Your next steps in Michigan

Make a property list
Every item of property goes on Official Form 106A/B.
Check the exemption list
For each item, find the Michigan exemption that covers it and its limit.
List the exemptions you claim
You claim exemptions on Official Form 106C.
Ask for free help
Ask for free help: Michigan Legal Help (statewide self-help and legal aid finder) and Eastern District bankruptcy court: Finding an Attorney and Legal Aid (lists local legal aid offices and bar referral services).

Where to get free help in Michigan

Questions about exemptions in Michigan

Can I use the federal bankruptcy exemptions in Michigan?

You can. Michigan lets you choose the state exemptions or the federal exemptions in 11 U.S.C. 522(d). You must pick one whole set.

How much home equity can I keep 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).

What is the vehicle exemption in Michigan?

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

Are furniture and clothes exempt in Michigan?

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).

Is my 401(k) or IRA protected in a Michigan bankruptcy?