People file for bankruptcy protection for many reasons. Some people can’t control their overwhelming credit card debts. Other people have huge medical bills that are financially suffocating. These problems can force debtors into filing for bankruptcy because creditors often make it difficult for debtors to negotiate settlement plans.
Find out more about Chapter 13 bankruptcy services from Legal Helpers bankruptcy attorneys, the largest U.S. bankruptcy law firm. Receive a free online consultation. Completely eliminate your debt.
As a result, debtors who live in Michigan and Pennsylvania should try to learn all they can about their state property exemption laws. There are some important bankruptcy exemption laws that Michigan and Pennsylvania residents can use to protect their personal property.
For example, Michigan residents can use their state’s bankruptcy exemption laws to protect almost any pension plan from their creditors. Other benefits protected by exemption laws in Michigan include insurance, food stamps and social security.
Certain types of property can also be protected in Michigan. For example, residents may exempt up to $1,000 worth of tools that are used in for work.
Michigan residents may also exempt up to $3,500 of the equity in one’s home, and this exemption can be “doubled”. In other words, married spouses who are filing for bankruptcy together can exempt up to $7,000 of the equity in their home. If you need help understanding this exemption more clearly, ask the local bankruptcy lawyers in your area for more details.
In Pennsylvania, residents are entitled to exemptions on their retirement savings and certain other financial assets. Most household items and any public assistance benefits are typically exempted.
Pennsylvania’s bankruptcy exemption laws allow residents to exempt as much as $1,750 worth of tools that are used in their trade. Using these exemptions, residents can protect the majority of their personal effects. Pennsylvania also allows a so-called “wildcard” exemption that allows them to designate up to $9,325 of their property as being exempt. There also exists an automobile exemption that can protect up to $2,775 of the value of a vehicle.
It is important to know the ins and outs of these types of exemptions in order to protect as much of your property as possible. Contact a bankruptcy attorney near you as soon as possible to get the best advice on how to proceed with your bankruptcy.




