Bankruptcy filers would use listed property exemptions and limits

A bankruptcy debtor may protect listed property from the bankruptcy estate up to the amounts stated in the section. The rules cover debtors filing bankruptcy and property such as household goods, farm assets, one vehicle, computers, work tools, and a homestead. A debtor may use exemptions allowed by federal law or the state exemptions listed here. The homestead limit is $125,000, or $200,000 when the debtor or a dependent is at least 65 or disabled. Other listed limits include $15,000 for one vehicle, $5,000 for computers and accessories, and $10,000 for work tools and business property. The exemptions apply to bankruptcy cases filed on or after the effective date of the amendatory act.

The state treasurer would adjust the section’s dollar limits and publish the adjusted amounts. The adjustment rules cover all dollar amounts in the exemption section, with a separate index for homestead amounts. Most amounts would be tied to the consumer price index for the Detroit-Ann Arbor-Flint or successor area. Homestead amounts would be tied to the FHFA Expanded-Data House Price Index or the most similar available index. Amounts would be rounded to the nearest $25. Adjusted amounts generally apply to cases filed on or after March 31 following an adjustment date; homestead adjustments apply to cases filed after March 31 following that date.