We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
Every year, people are deterred from seeking the protections of the Bankruptcy Code due to their fear of losing all of their property. While there is a mechanism for liquidating certain assets in Chapter 7 bankruptcy, the reality is that most people get through this process without giving up any of their belongings. This is due in part to existing bankruptcy exemptions in Dearborn.
If you have questions about whether your property is exempt, our team of attorneys is here to provide the answers. Talk to our compassionate bankruptcy lawyers today to learn how these exemptions might benefit you.
If you are filing for bankruptcy in Dearborn, you have the ability to choose which set of exemptions will apply to your case. You may use either Michigan state exemptions or the federal bankruptcy exemptions, but you cannot combine the two. This choice can significantly affect how much of your property you are able to protect, especially when it comes to your home.
While Michigan’s homestead exemption is generally considered more generous than the federal homestead exemption, the federal system can be more flexible in how it protects other types of assets, such as cash, personal property, or certain financial accounts. Because every household’s property and financial situation is different, it is important to carefully compare both systems before filing.
Our Dearborn bankruptcy attorneys can help you determine which option best safeguards the assets most important to you.
It is true that some states offer far more generous exemption protections than others, particularly when it comes to shielding equity in a home. Because of this, it is common for people to wonder whether relocating to a new state before filing for bankruptcy could allow them to take advantage of more favorable exemption laws. However, the bankruptcy system has rules in place to prevent someone from moving solely to benefit from a different state’s protections.
In most cases, you must have lived in Michigan for at least two years (730 days) before you are allowed to use Michigan’s exemption system. If you have not met this residency requirement, you generally must apply the exemption laws from the state you lived in previously.
Additionally, if you have moved multiple times within those two years, the courts will look further back. If your domicile has not been in the same state for the full two-year period, the law requires applying the exemptions of the state where you lived for the majority of the 180-day period leading up to the start of those two years. In other words, the court must determine where you were truly “rooted” before your filing.
These residency rules can become complex—especially for individuals who have relocated frequently or recently moved to Michigan. Our Dearborn bankruptcy attorneys can analyze your circumstances, determine which state’s exemption laws will apply, and help you understand how those rules will affect your home and personal property.
While the homestead exemption often receives the most attention, Michigan law provides a range of other exemptions designed to protect your essential property and long-term financial security.
One of the most significant protections applies to retirement assets. Most qualified pension and retirement accounts are fully exempt, meaning creditors generally cannot touch them in bankruptcy. In addition, traditional and Roth IRAs are protected up to a limit of more than $1 million, ensuring that funds intended for your future remain secure.
Michigan law also allows you to protect a portion of the equity in your motor vehicle, helping you maintain reliable transportation to work, medical appointments, or other daily needs.
Beyond that, there are exemptions for personal property, including items such as:
These exemptions reflect the principle that bankruptcy is meant to provide a fresh start, not strip you of the items you rely on to live your life.
Our attorneys can review your individual assets and help you maximize the available protections under Michigan law.
Exemptions are only one of the ways you can protect yourself during the bankruptcy process. If you are curious how these protections might help you get a fresh financial start, let our team answer your questions during a private consultation. Reach out to discuss bankruptcy exemptions in Dearborn with our team. If you are ready to move forward, we can file your bankruptcy case with $0 down. You can also get an immediate overview of your situation by filling out our debt calculator.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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