If you are planning to file for a bankruptcy in the state of Michigan, now is the time to do so. On April 1, 2014, Michigan officially changed the dollar amounts for some of the bankruptcy exemptions. This means that filers in Michigan can now keep more property in a Chapter 7 bankruptcy then was permissible in the past.

Exemptions are properties that are not liquidated in a traditional Chapter 7 bankruptcy. Each state has a list of specific properties that can be exempt in the state, normally up to certain dollar amounts. Most properties in a Chapter 7 bankruptcy are "liquidated" or sold and the proceeds are used to repay high-priority creditors. Any property that cannot be sold is called exempt property.

In a Chapter 13 bankruptcy, exempt property plays a role in how much you must repay unsecured creditors over the duration of your repayment plan. You will be able to keep almost all of your property in a Chapter 13, but having most of your property considered exempt can still come with benefits.

Every three years, the state of Michigan adjusts the exemption dollar amounts to take inflation into account. Now, Michigan residents that are filing for a Chapter 7 bankruptcy can exempt household goods, furniture, books, jewelry, appliances or utensils that are valued at $600 per item as long as the total of exempt items doesn't exceed $3,775. This adds an extra $250 to the total exemption value as compared to previous cases.

Pets can be exempt up to $650, and motor vehicles are now exempt up to $3,745. Computers and accessories can be exempt up to $650, and homesteads are exempt up to $37,775. Individuals that are over the age of 65 can claim a homestead exemption up to $56,650 and tools of the trade can be exempt up to $2,525. For farmers, crops, farm animals and feed for animals can be exempt totaling $2,525 and pews in a place of worship can be exempt up to $650. These larger exemption values can help Michigan locals to preserve their assets while still working towards debt elimination.

Every state has different bankruptcy exemption laws, and many states change these exemption amounts on a regular basis. If you are dealing with a bankruptcy and would like to learn more about the exemption laws in your state, we highly suggest that you use our directory to locate a lawyer nearest you. With the right attorney on your side, you will be able to determine the exemptions for your state and plan accordingly. Contact a local lawyer today to get an expert opinion on the way that you should conduct yourself through your bankruptcy case.