Filing for Bankruptcy in Michigan: Local Laws and Rules
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Michigan Bankruptcy Laws

How Do You File for Bankruptcy Protection in Michigan?

If you're having trouble making ends meet, you're not alone. There is help.

Chapter 7 and Chapter 13 bankruptcy, the two main types of personal bankruptcy outlined by the U.S. Bankruptcy Code, were designed to halt creditors while protecting exempt property. Now you may be able to put these laws to work for you.

If you have questions about how bankruptcy may be able to help you improve your financial situation, speak with a Michigan bankruptcy lawyer today.

All you have to do to connect with a Michigan bankruptcy attorney is fill out the below form for a free, no-obligation case evaluation by an attorney.

Michigan Bankruptcy Exemptions

Chapter 7 bankruptcy can, in some cases, involve a "liquidation" of some of a filer’s property to raise money to pay creditors.

But don’t worry: Michigan bankruptcy law outlines several exemptions, which may allow you to keep many of your belongings if you choose to file under Chapter 7. In fact, in the majority of Chapter 7 cases there is no sale of property.

Property that's protected under Michigan bankruptcy law includes the following:


  • $30,000 for your residence
  • $45,000 if debtor is 65-years-old or older or disabled


  • Up to 60 percent of wages, but not less than $15 per week, for householders with family
  • Up to 40 percent of wages, but not less than $10 per week, for anyone else


  • Up to $2,775 for one vehicle

Other Property

  • 100 percent of family pictures, clothing, fuel for six months, burial plots, health aids
  • Up to $450 per item, with a total value of no more than $3,000, for household goods, furniture, utensils, books and appliances
  • $500 in value of a church pew
  • $2,000 in value of crops, farm animals and feed
  • $500 in value of household pets
  • $500 in value of one computer and accessories
  • $2,000 in value of tools, implements, materials and other things to enable a person to carry on a profession.
  • 100 percent of worker’s compensation, unemployment and ex-servicemen’s benefits

Michigan Chapter 13 Bankruptcy Laws

Chapter 13 bankruptcy is also known as a reorganization of debts. This is because Chapter 13 filers get a chance to catch up on late payments by following a 3-5 year repayment plan.

Because filers are expected to make regular payments, Chapter 13 bankruptcy tends to work best for those who have a regular, steady income but are in debt because of some unexpected financial setback.

Chapter 13 bankruptcy is also known to stop foreclosure. This is because the automatic stay, which takes effect as soon as a bankruptcy case is filed, prevents creditors from making any collections while the case is pending.

Since foreclosure is a form of collection, it can be halted for several years in a Chapter 13 case.

If you’re suffering under debt, know that you have options. Chapter 7 and Chapter 13 could help you get out of debt. Speak with a local bankruptcy about whether Chapter or Chapter 13 can help you.

Talk to a Michigan Bankruptcy Lawyer Today About Filing Bankruptcy

As you can see, Michigan bankruptcy law may be difficult to interpret without a law degree. That’s why we’ve made it easier than ever to get in touch with a Michigan bankruptcy lawyer practicing in your area of the state.

If you want help in deciding which type of personal bankruptcy, if any, will work best for you or you’re ready to start the bankruptcy process, speak with a Michigan bankruptcy attorney today. Simply fill out our free form on this page or call us at 877-349-1309 and we'll connect you directly with a sponsoring attorney.

Get more information on Detroit bankruptcy lawyers.


Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.

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