Bankruptcy Exemptions in Michigan
Some property and assets will be exempt from the bankruptcy process and can not be sold to meet your debt obligations. Exemptions are outlined in federal bankruptcy laws, but some states have created their own lists. In many states you can choose to use either the state bankruptcy exemption list or the federal bankruptcy exemption list. In other states you can only use the state bankruptcy exemption list.
All exemptions are created to allow an individual to start over after filing bankruptcy. In the state of Michigan you may use either the federal bankruptcy exemption list or Michigan Bankruptcy Exemptions.
What Debts are not discharged in Michigan?
There will be some debts that can not be discharged by filing bankruptcy. These debts are called non-dischargeable debts. All non-dischargeable debt is outlined under federal bankruptcy law and will be the same for Michigan as all other states.
Failure to pay non-dischargeable debt will allow creditors to use all legal means possible to collect the debt, even if you are under bankruptcy protection.
You should talk to your Michigan Bankruptcy Attorney to discuss all of your debts. In the state of Michigan, the following debts will not be discharged by filing bankruptcy:
- Federal, state and local taxes. May be subject to specific time rules.
- Spousal Support/Alimony
- Child Support Payments
- Most Student Loans
- Mortgage Liens
- Certain types of purchases for luxury items within 90 days of filing
- Secure Debt
- Penalties and fines by government agencies
- Fraud committed in a fiduciary role including larceny and embezzlement
- Punitive damages assessed for “willful and malicious acts”
- Debts not outlined on the schedule and forms filed with the Bankruptcy Court
- Drunk Driving fines
- Certain cash advances or purchases for luxury items with in a certain time frame.
