Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Michigan, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Michigan allows debtors to choose between using the state's bankruptcy exemptions or the federal bankruptcy exemptions, but not both. This means that when filing for bankruptcy in Michigan, you must decide whether the state or federal exemptions better protect your assets. Michigan's exemptions include specific protections for homestead, personal property, pensions, tools of trade, and more, with varying limits on the value of the exempted property. Federal exemptions, on the other hand, may offer different protections and limits. It's important to carefully review both sets of exemptions or consult with an attorney to determine which set of exemptions will most benefit your situation when filing for bankruptcy.