Bankruptcy in Michigan

Michigan has two federal bankruptcy districts. Chapter 7 fees range $1,000-$2,000, Chapter 13 costs $2,500-$5,500. Michigan exemptions include a $40,475 homestead exemption, $3,525 motor vehicle, and various personal property exemptions. The state does not allow use of federal exemptions. Michigan's manufacturing decline and Detroit's bankruptcy (2013) highlighted the state's financial pressures. Wayne County consistently ranks among the highest filing districts nationally. Chapter 13 plans are commonly used for mortgage arrearages and land contract defaults common in Michigan real estate. The Eastern District has specific local procedures for mortgage modification mediation within bankruptcy.