Detroit, MI Michigan Bankruptcy Law

What Detroit and Tri-County area residents need to know

Regardless of why you need to file bankruptcy, it is important to have a local Detroit bankruptcy attorney who is familiar with local bankruptcy rules and can provide bankruptcy help in Detroit and the surrounding area. While bankruptcy is a constitutional right and falls under federal jurisdiction, there are local rules that can mean the difference in the outcome of your bankruptcy hearing.

In Michigan, there are differences in how much a person can keep in assets in their bankruptcy case. You can choose one of two exemption schemes in Michigan, whichever best suits your circumstances. The items and amounts in this section may change in the future.

Asset protection under Michigan law

Under the first exemption scheme, from federal bankruptcy laws, you can keep:

• Your home, including co-op or mobile home, to $20,200
• Life insurance payments for person you depended on, needed for support
• Life insurance policy with loan value, in accrued dividends or interest to $10,775
• Un-matured life insurance contract, except credit insurance policy
• Alimony, child support needed for support
• Pensions and retirement benefits, ERISA - qualified benefits needed for support
• $550 per item in any household goods up to a total of $10,775
• Health aids
• Jewelry to $1,350
• Lost earnings payments
• Your motor vehicle to $3,225
• Personal injury compensation payments to $20,200, wrongful death payments, crime victims' compensation, public assistance, Social Security, unemployment compensation, and
  veterans' benefits
• Tools of trade up to $20,200
• Wild card - $1,075 of any property plus up to $10,125 of any amount of unused
  homestead exemption

Married couples may double the amount of the federal exemptions.

If you choose the second exemption scheme, under Michigan bankruptcy laws, you can keep:

• Your home, if you do not have more than $34,450 ($51,650 if elderly or disabled) in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages)
• Family pictures and clothing
• Food and fuel to last six months
• Household goods, furniture, appliances, utensils, books, up to $3,450 total (maximum $525
  per item)
• burial plots; church pew, slip, seat
• Crops, farm animals and feed for the farm animals to $2,300
• Food and fuel to last family for six months
• Arms and accoutrements you're required by law to keep
• Tools of trade and farm equipment, up to $2,300 in value
• Building and loan shares to $1,150 par value if you did not claim a homestead exemption
• Disability, mutual life and/or health benefits; fraternal benefit society benefits; and life, endowment or annuity proceeds if a clause in the policy prohibits the proceeds from being used to pay the beneficiary's creditors
• Private retirement benefits
• ERISA-qualified pension benefits
• Public employees' pensions
• Property of a business partnership
• Alimony and child support
• Crime victim's compensation, veterans', AFDC, social welfare, worker's compensation and unemployment compensation benefits
• 60% of earned but unpaid wages (not less than $15 per week, plus $2 per week for each dependent) if you are a head of household with a family; 40% of earned but unpaid wages (not less than $10 per week) if you are not a head of household with a family

Help and advice for your bankruptcy needs in Detroit and beyond

Take the first step in restoring your financial future and talk to a Detroit bankruptcy lawyer at the Valentino Law Firm today. You will be advised by a professional who understands bankruptcy in Michigan.

Attorney Victor P. Valentino and his experienced legal staff provide thorough, effective legal assistance with civil litigation, workers compensation, bankruptcy, personal injury and insurance law to residents of the Detroit Tri-County area. With offices located in Bloomfield Hills, he is well-positioned to assist clients in Wayne, Oakland, Macomb and Genesee Counties, including the Bloomfield, Pontiac, Waterford, Clarkston and White Lake areas.

Bankruptcy is a major disruption in your life. We work to minimize the burden for you. Our office staff helps you fill out all of the paperwork and assists you with obtaining the documents needed for filing bankruptcy. We charge a low flat fee for our complete bankruptcy services—and only $300 to initiate the bankruptcy process.

To arrange your free consultation with a Southeastern Michigan bankruptcy lawyer, contact the Valentino Law Firm in Metro Detroit at 248-334-5340.