Michigan Motor Vehicle Exemption & Other Personal Property Exemptions

 

How much equity in your car or truck can you protect if you file for bankruptcy in Michigan?

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Michigan Personal Property Exemptions — State System

Personal Property Exemptions Under Michigan Law

CAR:

Motor vehicle to $4,250 (adjusted for inflation, April 1, 2023).

Federal Non-Bankruptcy Personal Property Exemptions
(available only if using State System)

Personal Property Exemptions — Federal System § 522(d)

Can Michigan debtors use the Federal Bankruptcy exemptions instead of Michigan exemptions?

Yes. Michigan residents can use the Federal or State exemption systems.

Michigan has passed a special set of exemptions designed only to be used in bankruptcy cases (found in Section 600.5451). Although debtors can use the the exemptions in Michigan's "bankruptcy only" exemption statute, as well as ANY OTHER exemptions found in other Michigan statutes, such as exemptions for life insurance. (See In re Sasasak, 426 B.R. 680.)

The Federal Bankruptcy Exemptions under 11 U.S.C. § 522(d) are available to you if

  • you haven't lived in any state longer than 180 days for a while,
  • or
  • if your state allows the Federal exemptions as a choice.

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Jurisdictional relevance: ST

There are versions of this article for each State.