Bankruptcy by State
Bankruptcy in Michigan
How Michigan's bankruptcy exemptions, Chapter 7 income limits, and filing volume compare to the rest of the country.
Homestead exemption
$51,150 ($76,725 if debtor or dependent is 65+ or disabled)
#24 of 51
Vehicle exemption
$4,725
#14 of 51
Median income (1 person)
$67,352
Chapter 7 means-test threshold
Annual filings
22,368
Year 2025
Michigan vs. national medians
National medians are calculated across all 51 states plus the District of Columbia. Ranks run from #1 (highest) to #51 (lowest). Where a state publishes a range or a conditional amount, the exemption is shown in full and ranked by its guaranteed minimum.
| Metric | Michigan | National median | Rank |
|---|---|---|---|
| Homestead exemption | $51,150 ($76,725 if debtor or dependent is 65+ or disabled) | $90,000 | #24 of 51 |
| Motor vehicle exemption | $4,725 | $7,250 | #14 of 51 |
| Median income (1-person household) | $67,352 | $71,745 | #35 of 51 |
| Median income (4-person household) | $123,010 | $126,058 | #31 of 51 |
| Annual bankruptcy filings | 22,368 | 8,707 | #8 of 51 |