Michigan Bankruptcy Law
Bankruptcy Courts in Michigan
If you live in Michigan and are considering filing for bankruptcy, your case will be handled in one of the state’s two federal bankruptcy courts:
- Eastern District of Michigan – based in Detroit, Flint, and Bay City
- Western District of Michigan – based in Grand Rapids, Lansing, Kalamazoo, Marquette, and Traverse City
Each district has its own courthouse, judges, and trustees. You’ll file your case in the district that covers the county where you live or where your main property or business is located. Filing in the correct district is important. An experienced bankruptcy attorney can help ensure your case is filed properly and handled efficiently.
All bankruptcy cases in Michigan follow federal bankruptcy law, but each district also has its own local rules and procedures. Because procedures vary by district, it’s best to consult a bankruptcy attorney who can make sure your filing is accurate and that your property is fully protected. Court decisions are guided by the U.S. Court of Appeals for the Sixth Circuit, which also covers Ohio, Kentucky, and Tennessee.
Bankruptcy Filing Trends in Michigan
Michigan courts handle thousands of consumer bankruptcy filings each year. Most are Chapter 7 cases, which discharge unsecured debts like credit cards, medical bills, and personal loans. Chapter 13 repayment plans are also common among homeowners and wage earners who want to keep property while catching up on past-due payments.
The Eastern District—including Detroit and surrounding counties—typically reports the highest volume of filings, followed by the Western District. These numbers show how many Michigan residents each year use bankruptcy to stop creditor actions, prevent foreclosure, and achieve financial stability.
Michigan and Federal Exemptions — What You Can Keep
Bankruptcy doesn’t mean losing everything you own. Exemption laws protect property that you need to live and work, such as your home, car, household goods, and retirement funds. Exempt property is protected by law and cannot be taken or sold to pay creditors.
Michigan allows filers to choose between state and federal exemptions. A married couple filing jointly may each claim the full amount of every exemption in property they jointly own. Choosing the best set of exemptions—state or federal—depends on your circumstances, so speaking with an attorney can help you decide which option provides greater protection.
Common Michigan Exemptions
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead – primary residence | $46,125 / $92,250 ($69,200 / $138,400 if elderly or disabled) |
| Motor vehicle (one) | $4,250 / $8,500 |
| Household goods, furniture, utensils, books, and appliances ($700 per item limit) | $4,625 / $9,250 |
| Jewelry and personal items | Reasonable value |
| Tools of trade, implements, and books | $3,075 / $6,150 |
| Computer and accessories | $800 / $1,600 |
| Household pets | $800 / $1,600 |
| Farm animals and feed ( six-month supply ) | $3,075 / $6,150 |
| Health aids (prescribed) | 100 % |
| Individual Retirement Accounts (IRAs) | 100 % (except recent contributions) |
| Pensions and profit-sharing plans | 100 % (except recent contributions) |
| Insurance benefits and life proceeds | 100 % |
| Public assistance, unemployment, workers’ compensation, veterans’ benefits | 100 % |
| Wildcard (any property) | $1,000 + unused homestead (up to $12,400) |
| Tenancy by the entirety property (spousal ownership) | 100 % (except for joint debts) |
Common Federal Exemptions
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Home equity | $31,575 / $63,150 |
| Motor vehicle | $5,025 / $10,050 |
| Household goods and furnishings ($800 per item limit) | $16,850 / $33,700 |
| Jewelry | $2,125 / $4,250 |
| Wildcard (any property) | $1,675 + unused homestead (up to $15,800) |
| Tools of trade | $3,175 / $6,350 |
| Personal-injury compensation | $31,575 / $63,150 |
| Retirement accounts and pensions | 100 % |
Because exemption values and categories differ between state and federal exemptions, an experienced bankruptcy attorney can help evaluate which option provides better protection for your home, vehicle, and savings.
Steps and Local Requirements
Credit counseling. Before filing, you must take a credit counselling course from an approved provider. A second debtor education course is required before your debts can be discharged.
Means test. To qualify for Chapter 7, your income must be below Michigan’s median or pass a means-test calculation comparing income and allowable expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. You may request to pay in installments or apply for a waiver if you cannot pay in full.
Meeting of creditors. About a month after filing, you’ll attend a short “341 meeting.” It’s not held before a judge. A bankruptcy trustee will confirm your identity and review your paperwork.
In Michigan, meetings are typically held virtually or in person at the courthouse in Detroit, Flint, Bay City, Grand Rapids, Kalamazoo, Lansing, Marquette, or Traverse City, depending on where your case is filed.
Local rules and forms. The court’s website lists all current local rules and forms. Following them carefully helps your case move forward without delay.
What This Means for You
Filing for bankruptcy in Michigan can provide a fresh financial start and immediate protection from creditor actions. The process stops lawsuits, garnishments, foreclosures, and repossessions.
Most filers keep their homes, vehicles, and personal property. Because Michigan allows you to choose between state and federal exemptions, it’s especially important to consult a bankruptcy attorney before filing.
An attorney can help you:
- Decide whether Chapter 7 or Chapter 13 fits your situation
- Choose exemptions that best protect your assets
- Complete required counseling courses
- File all forms accurately and meet local deadlines
With professional guidance and careful preparation, bankruptcy can help you eliminate debt and regain long-term financial stability.
U.S. Bankruptcy Court – Eastern District of Michigan
Federal Circuit: Sixth Circuit Court of Appeals
Court Locations: Detroit, Flint, and Bay City
Where You File Depends on Where You Live
The Eastern District of Michigan serves the eastern half of the state, including the Detroit metropolitan area and surrounding counties. Cases are filed and administered through the U.S. Bankruptcy Court locations in Detroit, Flint, or Bay City, depending on where the debtor resides.
Counties Served
- Alcona
- Alpena
- Arenac
- Bay
- Genesee
- Huron
- Lapeer
- Livingston
- Macomb
- Midland
- Monroe
- Oakland
- Ogemaw
- Presque Isle
- Saginaw
- Sanilac
- Shiawassee
- St. Clair
- Tuscola
- Washtenaw
- Wayne
If you’re unsure which courthouse serves your county, a bankruptcy attorney can confirm where to file and ensure your case meets all local requirements.
Recent Filing Statistics
The Eastern District consistently handles the largest share of Michigan’s consumer bankruptcy filings. Most are Chapter 7 cases, used to discharge unsecured debts such as credit cards and medical bills, while Chapter 13 repayment plans help homeowners and wage earners manage past-due payments.
U.S. Bankruptcy Court – Western District of Michigan
Federal Circuit: Sixth Circuit Court of Appeals
Court Locations: Grand Rapids, Lansing, Kalamazoo, Marquette, and Traverse City
Where You File Depends on Where You Live
The Western District of Michigan covers the western half of the state, including the Upper Peninsula. Bankruptcy cases are filed and heard in one of five court locations: Grand Rapids, Lansing, Kalamazoo, Marquette, or Traverse City, depending on the county where you live or own property.
Counties Served
- Allegan
- Barry
- Benzie
- Berrien
- Branch
- Calhoun
- Cass
- Charlevoix
- Cheboygan
- Clare
- Clinton
- Crawford
- Delta
- Dickinson
- Eaton
- Emmet
- Gladwin
- Gogebic
- Grand Traverse
- Gratiot
- Hillsdale
- Ionia
- Iosco
- Iron
- Isabella
- Jackson
- Kalamazoo
- Kalkaska
- Kent
- Lake
- Leelanau
- Lenawee
- Manistee
- Mason
- Mecosta
- Menominee
- Missaukee
- Montcalm
- Muskegon
- Newaygo
- Oceana
- Ontonagon
- Osceola
- Oscoda
- Otsego
- Roscommon
- Schoolcraft
- Van Buren
- Wexford
If you’re uncertain where to file, a bankruptcy attorney can verify your county and help you prepare your documents correctly under local rules.
Recent Filing Statistics
The Western District handles several thousand bankruptcy filings each year. Chapter 7 cases remain the most common, followed by Chapter 13 filings that help individuals with steady income restructure debts and protect property.
