Detroit Chapter 7 Lawyer

Michigan Debt Discharge Attorney

When a person files a Chapter 7 bankruptcy, a trustee is appointed, who becomes the immediate owner of the person's property on the day they file their case. This does not mean the person will lose possession of their property. In fact, the vast majority of people keep their property. The property that a person can keep is called exempted property. Property which is exempt from the Trustee's power to take possession of, sell and turn into cash.

An exemption is therefore the bundle of property a person filing bankruptcy may keep from the Chapter 7 Trustee to make a "fresh start" in life. Persons who file bankruptcy in Michigan are entitled to elect their scheme of exemptions from those provided under the Federal Bankruptcy Code or Michigan law.

Below is a comparative analysis of some property a person may own and still keep although they have filed bankruptcy. The analysis is not exhaustive and is not intended as legal advice. A discussion of their applicability to the client should be made with an attorney at Charles J. Schneider, P.C. Even those exemptions described as unlimited may be limited under certain circumstances.

	Exemptions Available Under the Bankruptcy Code

	Item	Michigan	Federal

1	All Family pictures, arms required by law, wearing	Unlimited	may be part of #3 below
	apparel (excluding furs), burial plots		may be part of #3 below
2	All fuel and provisions for 6 months	Unlimited	none*
3	Household goods, furniture, utensils, books, appliances	$3,000.00	$9,850.00
		$6,000.00	$19,700.00
		no item may	no item may
		exceed $450.00	exceed $475.00
4	Health aids	Unlimited	Unlimited
5	Jewelry	none	$1,225.00
		may be part of $3,000.00	$2,450.00
		under #3
6	Pew in place of worship	$500.00	none*
		$1,000.00
7	Crops, farm animals, and feed for farm animals	$2,000.00	none*
		$4,000.00
8	Household Pets	$500.00	none*
		$1,000.00
9	One motor vehicle	$2,775.00	$2,950.00
		$5,550.00	$5,900.00
10	One Computer and its accessories	$500.00	none*
		$1,000.00	may be part of #3
			or #11
11	Tools of trade	$2,000.00	$1,850.00
		$4,000.00	$3,700.00
12	Life insurance policy - unmatured	Unlimited	Unlimited
13	Life insurance policy with loan value	Unlimited	$9,850.00
			$19,700.00
14	Life insurance payments needed for support	Unlimited	Unlimited
15	Lost earnings compensation payments	None	Unlimited
16	Benefits from stock or mutual life, health, or casualty	Unlimited	none*
	insurance for disability
17	Govt. benefits: Soc. Sec., Unemployment, Pub. Assistance	Unlimited	Unlimited
18	Veterans' benefits	Unlimited	Unlimited
19	Disability, illness	Unlimited	Unlimited
20	Alimony and child support	Unlimited	Unlimited
21	Pensions	Unlimited	Unlimited
22	Crime Victims' compensation	Unlimited	Unlimited
23	Wrongful death payments	none*	Unlimited
24	Personal injury compensation payment	none*	$18,450.00
			$36,900.00
25	Shares of association, savings & loan, unless homestead	$1,000.00	none*
	exemption	$2,000.00
26	Qualified retirement account	Unlimited	none*
27	Pension, profit-sharing plan	Unlimited	none*
28	Homestead, if debtor, codebtor or dependents of debtor are	$30,000.00	$18,450.00
	less than 65 years of age and not disabled	$60,000.00	$36,900.00
29	Homestead, if debtor or dependents of debtor are 65 years	$45,000.00	$18,450.00
	of age of older or disabled	$90,000.00	$36,900.00
30	Homestead - widow or widower with no children	Unlimited	$18,450.00
			$36,900.00
31	Real Property held as a tenancy by the entirety: provided	Unlimited	$18,450.00
	there are no joint creditors		$36,900.00
32	Bonds, certificates of stock, mortgages, promissory notes,	Unlimited	none*
	debentures, or other evidences of indebtedness held jointly
	as husband and wife
33	Wildcard exemption - any property up to $975.00 plus up to	none	$10,225.00
	$9,250.00 of unused amount from homestead		$20,450.00
	*none unless wildcard exemption can be applied