Michigan Property Exemptions:

Certain property is exempt from forfeiture and liquidation for payment of unsecured debts. Debtors in Michigan bankruptcy cases may elect the specific property listed by state statute which include allowances for personal property, insurance, pensions, tools of trade and many other items. The characterization of property to conform to allowed statutory definitions of exempt property is often subject to dispute. 16 state jurisdictions allow debtors to alternatively select the federal exemptions specified by the Code.

NOTICE OF AMENDED FORMS AND AUTOMATIC ADJUSTMENTS TO DOLLAR AMOUNTS: On April 1, 2004, automatic adjustments to the dollar amounts stated in various provisions of the Code will become effective in Michigan Bankruptcy Courts. The new dollar amounts will apply to cases filed after the effective date. These amended dollar amounts will affect the eligibility of a debtor to file under Chapter 13 of the Code, certain maximum values of property that a debtor may claim as exempt, the maximum amount of certain claims entitled to priority, the minimum aggregate value of claims needed to commence an involuntary petition, and the value of luxury foods and services deemed to be nondischargeable. The Michigan Bankruptcy Courts will adopt new forms to incorporate these changes beginning April 1, 2004.

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