Potential clients come into my office to determine if bankruptcy is the right step for them. A common question that I’m asked is whether or not they will lose all of their belongings. It is a common misconception that you’ll be left without anything in a bankruptcy. Every state gets to decide what “exemptions” (a fancy word for stuff protected through bankruptcy) an individual can keep through a bankruptcy.
The state of Michigan has decided that people filing bankruptcy can choose between the Federal Exemptions or the Michigan Exemptions. The federal exemptions are used in the majority of cases filed in Michigan because they offer the most protection. As you may note from reviewing the link above, a great deal of things are protected through bankruptcy. Many people filing bankruptcy get rid of their debt and they do not lose anything. The best way to ensure your things are protected through a bankruptcy is to meet with an experienced attorney who can identify any issues you might have and provide advice on what to do.
Exemptions are only one important part of the bankruptcy process. If you are interested in filing and getting to know more about the bankruptcy process, please reach out to your office and set up a free no obligation appointment.
At the law offices of Andersen, Ellis & Shephard, we have represented thousands of individuals in consumer bankruptcy filings.