Michigan Bankruptcy Exemptions Inflation Adjustments 2023
| MCL Citation | Original Value | 2020 Value | 2023 Value |
|---|---|---|---|
| 600.5451 (1) ( c ) Appliances, utensils, books, furniture, & household goods — per item |
$450 | $625 | $700 |
| 600.5451 (1) ( c ) Appliances, utensils, books, furniture, & household goods — TOTAL |
$3,000 | $4,050 | $4,625 |
| 600.5451 (1) (d) Church pew |
$500 | $700 | $800 |
| 600.5451 (1) (e) Crops, farm animals, and feed for the farm animals |
$2,000 | $2,700 | $3,075 |
| 600.5451 (1) (f) Household pets |
$500 | $700 | $800 |
| 600.5451 (1) (g) Motor Vehicle |
$2,775 | $3,725 | $4,250 |
| 600.5451 (1) (h) Computer & Accessories |
$500 | $700 | $800 |
| 600.5451 (1) (I) Tools of Trade |
$2,000 | $2,700 | $3,075 |
| 600.5451 (1) (m) Homestead — Regular |
$30,000 | $40,475 | $46,125 |
| 600.5451 (1) (m) Homestead — 65 or Older |
$45,000 | $60,725 | $69,200 |
Does Michigan Adjust Its State Exemptions for Inflation?
2023 INFLATION ADJUSTMENTS FOR BK-ONLY EXEMPTIONS: Under Michigan law, bankruptcy-only exemption amounts are adjusted for inflation on April 1, every three years (starting in 2005) by the Michigan Department of Treasury. These amounts have been adjusted, so the amounts listed in the statutes are not current. The most recent adjustment was published January 25, 2023 and applies to bankruptcies filed on or after April 1, 2023. Michigan inflation-adjusted exemption amounts for 2023 can be found here or by going to www.michigan.gov/treasury and typing "bankruptcy exemptions" in the search box.
Revised Federal Bankruptcy Exemption Amounts As of April 1, 2022
Can I use the Federal Exemptions in Michigan?:
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 are revised every three years. The last change was in 2019 and now they are changing again in 2022. The next change will be in 2025.
Not all states allow their residents to use the Federal Bankruptcy Exemptions.
The following are the new Federal Bankruptcy exemption amounts, effective April 1:
| Exemption: | Amount |
| Homestead - § 522(d)(1) | $27,900 |
| Motor Vehicle - § 522(d)(2) | $4,450 |
| Household Goods - § 522(d)(3) - Per Item Limit - Aggregate Limit |
$700 $14,875 |
| Jewelry - § 522(d)(4) | $1,875 |
| Wild Card - § 522(d)(5) - Any property - Unused homestead under § 522(d)(1) |
$1,475 $13,950 |
| Tools of the Trade - § 522(d)(6) | $2,800 |
| Unmatured Life Insurance - § 522(d)(8) | $14,875 |
| Personal Injury Claims - § 522(d)(11)(D) | $27,900 |
Here's What Other States Do
Every state also has its own exemption laws. Some of these states revise them for inflation, just like the federal government. The table below shows what each state does.
Some states (Alabama, Arizona, Alaska, California. Maine, Maryland, Michigan, Minnesota, Montana, Ohio, and South Carolina) periodically adjust their statutory exemption limits for inflation.
See the table below for more details.
- 2021
- 2022
- Alaska — October 2022 (even-numbered years)
- California — April 2022 (every three years)
- Indiana — March 2022 ((every 6 years)
- Maryland — April 2022 (every three years) Homestead Only
- Minnesota — July 2022 (every two years)
- Montana — Homestead (every year 4% — $364,000)
- Ohio — April 2022 (every three years)
- South Carolina — July 2022 (every two years)
- 2023
- Michigan — April 2023
- Montana — Homestead (every year 4% — $378,560)
- Nebraska Personal Property Exemption Amounts
- Adjusted Every 5 Years
- beginning in 2023.
- Neb. Rev. Stat. § 25–1556