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BANKRUPTCY EXEMPTIONS

Under the bankruptcy code, certain property is exempt. This means a debtor may keep this property and still go through bankruptcy. This property is kept by the debtor and the creditors cannot take the property. Under Chapter 13 Bankruptcy, you can still keep property that exceeds your exemptions if you pay the same value into the plan (what you exceed in exemptions). Specifically, the bankruptcy code exempts:

  • Equity in the debtor’s primary residence up to $20,200 per person. "d(1) exemption"
  • Equity in a motor vehicle up to $3,225.00 "d(2) exemption"
  • Household goods up to a value of $10,775.00 "d(3) exemption"
  • Jewelry up to $1,350.00. "d(4) exemption"
  • Exemptions for tools up to $2,025, "d(6) exemption"
  • Life insurance values up to $9,300.
  • Miscellaneous exemption in any property the debtor wishes up to $1075.00. In addition, up to $10,125.00 of unused exemption in a debtor's primary residence can be used as a general exemption. As a result, an individual who does not own a residence may exempt up to $10,125.00 in any property they wish in addition to the general $1075.00 exemption."d(5) exemption"
  • Typically all retirement accounts.
  • All of the above exemptions are doubled for a married couple.

    UPDATED 8/2009


    In addition to the above, the State of Michigan has "state exemptions" that can be used rather than federal exemptions. There is typically no advantage in taking the Michigan exemptions unless you have extensive house equity owned by a married couple with only one party filing bankruptcy and very little other assets.

     

    GRAND RAPIDS MICHIGAN BANKRUPTCY LAWYERS

    Krupp Law Offices P.C. represents clients facing bankruptcy throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, and Ionia.

    Our office can help.

    KRUPP LAW OFFICES PC

    161 Ottawa NW Suite 201

    Grand Rapids MI 49503
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    LINKS:  BANKRUPTCY GENERALLY