Until recently, single filers were limited to the Federal Exemption of $21,625 in equity in their home when filing a Chapter 7 Bankruptcy. This meant that debtors with equity in their homes beyond $21,625 would have to pay the excess equity to their creditors either by paying the money to the Trustee or by filing a Chapter 13 Bankruptcy and paying the amount over time. The decision in In re: Steven M. Schafer filed August 20, 2012 has returned the option of Michigan’s bankruptcy exemption to debtors. This is great news particularly for single filing Senior Citizens since it allows persons older than 65 to exempt $45,000 in property value. Other individual filers under age 65 can protect $30,000 worth of equity in their home.
