When preparing to file, many clients ask: What is the difference between federal and state exemptions in Michigan bankruptcy?
Michigan filers may choose either federal or state exemptions, but not both. The better system depends on your home equity, vehicle value, personal property, and expected tax refunds.
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Frequently Asked Questions
Can I mix federal and Michigan exemptions
No. You must pick one list for most categories and apply it consistently. I compare both before filing to see which protects more value for your situation.
Do exemption amounts change over time
Yes. Both systems adjust periodically. I verify amounts on the filing day using official sources so your schedules match current law.
Which list is better for homeowners
Often the Michigan homestead helps more when you have equity, but we run the numbers. If you rent, the federal wildcard may offer more flexibility.
What happens if the trustee objects to my exemptions
We respond with evidence, amend schedules if needed, or convert the case to Chapter 13 to pay any non exempt equity over time.
Can married couples double exemptions
Sometimes. Joint ownership and tenancy by the entirety rules can increase protection. I review deeds and account titles to decide.
Will choosing the wrong list make me lose property
It can. That is why we model both options and file only after the best choice is clear and documented
Do exemptions apply in Chapter 13
Yes. They still matter because they shape what unsecured creditors must receive under your plan’s best interest test.