Bankruptcy Exemptions
What Can I Keep After Filing? | Krupp Law Offices P.C.
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Protecting Your Property
One of the biggest misconceptions about bankruptcy is that you will lose everything you own. In reality, the law provides "exemptions" that allow you to keep essential property—such as your home, car, and retirement savings—while still discharging your debt. At Krupp Law Offices P.C., we specialize in maximizing these protections to ensure you keep what is yours.
Common Federal Exemptions
Note: These amounts are doubled for married couples filing jointly.
Primary Residence
Equity in your home up to $27,900 (Federal) or significantly higher under Michigan state law.
Motor Vehicles
Equity in a car or truck up to $4,450.
Household Goods
Furniture, appliances, and clothing up to $14,875 total.
Wildcard Exemption
Up to $15,425 of unused home equity can be applied to any property you choose.
Retirement & Professional Tools
Most 401(k)s, IRAs, and ERISA-qualified pensions are 100% exempt, meaning they are completely protected regardless of their value. Additionally, "Tools of the Trade" (equipment used for your job) are exempt up to $2,800.
Federal vs. Michigan Exemptions
In Michigan, you have the unique choice between using the Federal Exemption set or the Michigan State Exemption set. While the Federal set is often better for those with a "Wildcard" need, the Michigan set offers much higher protection for home equity. We will analyze your assets to determine which set leaves you in the strongest financial position.
Get a Professional Asset Review
Exemption planning is a critical part of the bankruptcy process. Before you file, let our attorneys review your assets to ensure everything you value is properly protected. Call 616-459-6636 for a free consultation.
Bankruptcy Topics
Protect Your Home
Don't risk your assets by filing without a plan. Speak with an expert today.
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