Michigan Bankruptcy Real Estate

Will I Lose My House in Chapter 7? Michigan Bankruptcy Real Estate

Bankruptcy Doesn't Automatically Cost You the House. The Equity Math Decides.

Free Equity Calculator · Chapter 7, 11, 13 · Licensed Since 2004

Whether you keep your home comes down to one comparison: what the house is worth, minus what you owe on it, against the homestead exemption you can claim. Run your numbers below in under a minute. If the answer is close, we will check your home's value for free, because that is the number your bankruptcy attorney needs too.

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Statutes CitedEvery legal figure is sourced
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Discreet, Not EvasiveDisclosed where required, private everywhere else
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Since 2004Licensed in Michigan

The Short Answer

Will I Lose My House If I File Chapter 7 in Michigan?

Usually not, if your equity is covered. In a Michigan Chapter 7 filed on or after April 1, 2026, you can generally keep your home when its equity (market value minus every mortgage and lien) is no more than the homestead exemption you claim: $51,150 under Michigan's list, $76,725 if you or a dependent is 65 or older or disabled, or $31,575 per filer under the federal list. You also have to keep paying the mortgage.

  • Equity at or under the exemption: the trustee generally has nothing to collect from the house, so there is no reason to sell it.
  • Equity over the exemption: the trustee can sell the home and pay you the exempt amount from the proceeds. Trustees weigh selling costs first, and some accept payment of the unprotected amount instead. Chapter 13 is the usual way to keep a home with more equity.
  • Behind on the mortgage: Chapter 7 can't force the lender to accept a catch-up plan. Unless you work it out with the lender, it can ask the court for permission to foreclose, even if all your equity is protected. Options outside bankruptcy are on our foreclosure help page.

Figures verified against MCL 600.5451 and 11 U.S.C. 522 on October 16, 2026. General information, not legal advice. Realty Concierge Group is a real estate brokerage, not a law firm.

Free Calculator · Michigan Chapter 7

Chapter 7 Home Equity Calculator

Four numbers and two questions. Nothing you type here is sent anywhere unless you decide to ask us for a home value check.

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Your best estimate. Not sure? That is the number we check for free.

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The payoff, not the original loan amount. Your monthly statement shows it.

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Second mortgage, home equity line, judgment liens, tax liens.

Your result appears here

You'll see your estimated equity next to both exemption lists Michigan filers can choose from, and how much room you have before the answer changes.

This calculator is an estimate for general information, not legal advice. It does not account for every exemption, your ownership share, liens it doesn't know about, or how your bankruptcy attorney will choose to apply the law. Amounts apply to cases filed on or after April 1, 2026.

If You're Facing Bankruptcy in Michigan, You're Not Alone

Life happens. Medical bills, job loss, divorce, a business that didn't make it — there are many paths that lead here. What matters now is making the best decisions with what you have.

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You're filing Chapter 7 and need to know if you can keep your home — or if selling is the smarter move.

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You're in Chapter 13 and need court approval to sell. The paperwork feels overwhelming.

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A trustee has been appointed and needs to liquidate the property. You want it handled right.

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You're behind on the mortgage and considering bankruptcy to stop foreclosure.

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You don't know if selling before or after filing is the right move — you need guidance.

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You haven't told your family yet, and you'd rather not have to explain any of this to a stranger.

Most people who call us start by explaining themselves. They tell us about the medical bills, or the business, or the year everything went sideways — because they think we need a reason to take them seriously.

You don't have to do that here. We have been doing this since 2004, and by now we have learned that decent, hardworking people end up in bankruptcy for reasons that had very little to do with any choice they made. Tell us as much or as little as you want. What we actually need to know is what the house is, what chapter you're in, and what your deadline looks like.

Not sure where to start? A confidential conversation can help you understand your options.

Free Consultation or 800-417-0117

On Discretion

What We Will Never Do

"We're discreet" is easy to say and impossible to check. So here is the specific version, including the part most pages leave out: there are things a bankruptcy sale legally requires us to disclose, and we will not pretend otherwise. Discretion is about everything past that line.

We will never hide what has to be disclosed

If a trustee is the seller, or the sale needs bankruptcy court approval, that condition goes in the listing. A buyer has a right to know their offer is subject to the court and the timeline is not a normal one. The sale cannot close without that approval, so the purchase agreement has to say so. Leaving it out would not protect you; it would only put the sale at risk when the approval step surfaces.

We will never volunteer anything past that

There is a wide gap between "this sale is subject to court approval" and your story. The buyer's agent gets the procedural facts that affect their client. They do not get the medical bills, the business that closed, or the year it all went sideways. "The sellers are motivated" is not a sentence we say.

We will never let you think you have control you don't

In a Chapter 7 trustee sale the trustee is the seller, not you. The court can approve, deny, or in some situations entertain a higher offer at the hearing. We will tell you exactly where each decision sits before we start, because finding that out at a hearing is a bad way to learn it.

We will never discuss your situation with neighbors

People ask at open houses and while a sign is going in. The answer is that the owners are moving. That is all anyone is ever told.

We will never push you toward selling

Sometimes the right answer is that your equity is protected and you should keep the house. We would rather tell you that and earn a referral than take a listing you shouldn't have signed.

We will never use distress language in marketing

Stating a required condition is not the same as advertising desperation. No "must sell," no "priced to move," no urgency signals in the photos or the copy. The presentation of your home looks like any other listing on the market.

We will never make you explain yourself

You are not going to be asked how this happened. We need the property details and the court timeline. The rest is yours to share or not.

Two things we cannot promise. Bankruptcy filings are public record, and that is outside anyone's control. And if the court is involved in your sale, the buyer will know that much, because the purchase agreement has to be conditioned on court approval. What we can promise is that nothing beyond the required disclosure will ever come from us — and that if you are selling before you file, there is no bankruptcy to disclose at all.

Understanding Your Michigan Bankruptcy Real Estate Options

Different types of bankruptcy have different implications for your home:

Chapter 7 Bankruptcy

"Liquidation" Bankruptcy

Debts are discharged, but non-exempt assets may be sold. If your home has significant equity above Michigan's homestead exemption, the trustee may sell it.

  • Faster process (typically 3–6 months)
  • Home may be sold if equity exceeds exemption limits
  • Trustee controls the sale of non-exempt assets
  • You may be able to keep your home if equity is protected
  • We help you understand your options before filing
Chapter 13 Bankruptcy

"Reorganization" Bankruptcy

You keep your assets but follow a 3–5 year repayment plan. You can sell your home, but need court approval first.

  • Keep your property while repaying debts
  • Selling requires court approval (motion to sell)
  • Sale proceeds may go toward repayment plan
  • More control, but more paperwork
  • Can keep a home with equity above the exemption, if the plan pays creditors at least what Chapter 7 would
  • We know the process and work with your attorney

How selling a house in Chapter 13 works

This is general information, not legal advice. Always consult with a bankruptcy attorney about your specific situation.

Need a property valuation? Knowing what your home is worth is the first step in understanding your options under either chapter.

Get a Free Valuation or 800-417-0117

The Numbers Behind the Calculator

Michigan Bankruptcy Homestead Exemption at a Glance (2026)

Most pages on this subject say the exemption protects "a certain amount of equity." Here are the actual figures, the statute each one comes from, and the details that change the answer for married couples, seniors, and anyone already behind on the mortgage.

Homestead protection for Michigan bankruptcy cases filed on or after April 1, 2026
SituationEquity protectedSource
Michigan list, most filers$51,150MCL 600.5451(1)(m), as adjusted by the State Treasurer
Michigan list, filer or dependent is 65+ or disabled$76,725MCL 600.5451(1)(m); "disabled" defined in 600.5451(5)(b)
Michigan list, married couple filing jointlyGenerally one shared $51,150 (or $76,725), not doubledMCL 600.5451(1)(m); In re Lindstrom (Bankr. E.D. Mich. 2005) read it as one cap for spouses
Home held by spouses as tenants by the entiretyMichigan list only: protected from debts owed by just one spouse, not from joint debtsMCL 600.5451(1)(n)
Federal list, per filer$31,57511 U.S.C. 522(d)(1), adjusted April 1, 2025
Federal list, married couple filing jointlyUp to $63,150 ($31,575 each) when both spouses own the home11 U.S.C. 522(m)
Federal "wildcard" (any property)$1,675 plus up to $15,800 of unused homestead11 U.S.C. 522(d)(5)
Mortgages and other voluntary liensNot affected; the exemption protects equity, not the house from the lenderMCL 600.5451(2)
Next scheduled adjustmentMichigan: April 1, 2029. Federal: April 1, 2028MCL 600.5451(4); 11 U.S.C. 104(a)
Why the statute says $30,000 and this page says $51,150. The figures printed in MCL 600.5451(1)(m) are $30,000 and $45,000. The statute directs the Michigan State Treasurer to adjust every dollar amount for inflation every three years, rounded to the nearest $25, and the adjusted amounts apply to cases filed on or after the following April 1. The current figures come from the Treasurer's notice signed January 30, 2026. The exemption covers your principal residence, including a house with up to 40 acres outside a city, village, or recorded plat, one lot or parcel inside one, a condominium or cooperative unit, or a home on land you don't own.
State list or federal list? Michigan lets you use either its own exemption list or the federal bankruptcy list. You can't mix the two lists, and spouses filing together must use the same one. For a single homeowner with real equity, Michigan's $51,150 usually protects more than the federal $31,575. For a married couple filing jointly who both own the home, the federal homestead can reach $63,150, while Michigan's is generally one shared $51,150, so the federal list sometimes wins, unless one spouse is 65+ or disabled, which raises Michigan's to $76,725. The choice covers everything you own, not just the house, so your bankruptcy attorney makes it. The home's value is what the comparison runs on.
"Disabled" has a narrow meaning here. For the higher $76,725 Michigan amount, disabled means unable to work at a substantial gainful level because of a physical or mental impairment and receiving Supplemental Security Income (SSI). The 65-or-older test is measured on the day the petition is filed, and it counts if a dependent meets it, not only you.
Pending legislation to watch. Senate Bill 1138 of 2026 passed the Michigan Senate on September 10, 2026 and was referred to the House Committee on Government Operations on September 15, 2026. As passed by the Senate, it would raise the homestead exemption to $125,000, or $200,000 if the debtor or a dependent is 65 or older or disabled, and would apply each exemption in full to each spouse in a joint case. It would cover only cases filed on or after its effective date. It is not law as of October 16, 2026; if it is enacted, this page and the calculator will be updated.

This is general information about Michigan law, not legal advice. Exemption amounts change on a schedule and occasionally sooner through legislation. Confirm the current figures with your bankruptcy attorney before relying on them.

Close to the line? A few thousand dollars of value changes the answer. Finding out where your home actually stands costs you nothing.

Get a Free Home Value Check or 800-417-0117

Chapter 13

Selling a House in Chapter 13 Bankruptcy in Michigan

Chapter 13 is built to let you keep your home while you repay creditors over three to five years. But plans change: a job move, a plan payment that no longer fits, or equity you would rather use. You can sell during a Chapter 13 case. It just doesn't work like an ordinary sale, and the order of steps matters.

  1. Talk to your bankruptcy attorney before you list

    While your case is open, selling your home usually requires the bankruptcy court's approval. Exactly how depends on your confirmed plan, the order confirming it, and the court's practice; many plans keep the home in the bankruptcy estate or require approval to sell it. Selling first and asking later can cost you the sale.

  2. Price it and find a buyer who can wait for the court

    The purchase agreement has to make closing depend on court approval, so buyers know going in that the timeline runs through the court. A defensible valuation matters here too: the trustee and creditors will look at whether the price is fair.

  3. Your attorney asks the court to approve the sale

    The trustee and creditors get notice and a chance to object, often 21 days, depending on the court and your plan (see Federal Rule of Bankruptcy Procedure 2002(a)(2) for sales of estate property). The court may also need to approve paying the real estate commission from the sale proceeds. In the Western District of Michigan, a motion about real property must include the complete legal description in recordable form and the street address (W.D. Mich. LBR 6004(a)).

  4. Close, then report to the trustee

    The mortgage, liens, and closing costs are paid at closing, and the rest is handled as the court's order directs. In the Western District, you must send the Chapter 13 trustee a copy of the closing statement within 14 days after closing (W.D. Mich. LBR 6004(b)).

Where the rest of the money goes. It depends on your plan, your exemptions, and the court's order. Sometimes the proceeds pay off the plan early. Sometimes the trustee asks to modify the plan so unsecured creditors receive more (11 U.S.C. 1329). Sometimes you keep it. Courts nationally disagree about who benefits when a home rises in value after the plan is confirmed. In In re Elassal (Bankr. E.D. Mich. 2023), the court let a homeowner use proceeds from post-confirmation appreciation to buy a replacement home, over the trustee's objection; the ruling was limited to money used for the new home. It is one judge's decision, other courts have ruled differently, and plan terms can change the result, so ask your attorney how it applies to you before you accept an offer.
Selling after Chapter 13 is over. Once you receive your discharge and the case is closed, the bankruptcy court is no longer involved. You can sell like any other homeowner, with no motion and no court approval. A discharge does not remove a mortgage or other liens, so those are still paid off at closing, as in any sale.
If the plan payment no longer fits. You have more options before payments fall behind than after. Depending on your situation, your attorney may talk with you about modifying the plan (11 U.S.C. 1329), selling the home and using the proceeds to pay the plan, converting to Chapter 7, where a trustee can sell the home if equity exceeds your homestead exemption and growth in value since you filed may not be protected, or, in limited circumstances, a hardship discharge (11 U.S.C. 1328(b)). Each one depends on your equity, so the home's value is a useful number to have early.

Thinking about selling during Chapter 13? We'll value the home for free and work with your attorney on everything the motion needs.

Get a Free Home Value Check or 800-417-0117

How Realty Concierge Group Helps With Bankruptcy Real Estate

We work alongside you and your bankruptcy attorney to handle the real estate piece properly.

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Accurate Valuations

Court-ready CMAs and appraisal coordination so everyone knows what the property is actually worth.

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Trustee Coordination

If a trustee is involved, we work with them directly. We understand the process and reporting requirements.

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Court Approval Support

For Chapter 13 sales, we provide the documentation needed for your motion to sell.

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Property Preparation

We coordinate any needed repairs, cleanouts, or staging — even if you've already moved out.

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Timeline Management

Bankruptcy has deadlines. We build our marketing and sale strategy around your court dates.

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Complete Discretion

Your situation stays private. We handle everything professionally with no unnecessary attention.

Trusted Michigan Bankruptcy Real Estate Team

We don't publish reviews that identify anyone's bankruptcy, for the same reasons listed above. These are clients who came to us during genuinely hard financial stretches and agreed to let us share what the experience was like.

"We started working with Joel when the market was slow and we were upside down on our condo. He stuck with us for many years, continuously re-evaluating the market and our situation. When the time finally came where we could sell, he made the process very easy."

Greg & Laura Pemberton

Underwater and waited years before selling. Nobody rushed them.

"Joel and his associates handled the sale of our home of 45 years very efficiently and professionally. Every question we had was answered quickly and our home was sold in less than a month. Everything along the way and the closing went smoothly."

Dennis & Carol Vickers

A home of 45 years, sold on a deadline, without drama.

"They are caring, compassionate, and understanding. During a difficult transition for my family, they took all the stress away. I would recommend them to anyone going through a hard time."

James & Natalie Owens

Sold during a hard financial stretch.

Your situation deserves the same care. Let's have a confidential conversation about what's possible.

Start the Conversation or 800-417-0117

For Bankruptcy Attorneys

A Michigan Real Estate Team That Understands the Bankruptcy Process

When your clients need to sell real estate as part of a filing, you need a team that won't create complications. Realty Concierge Group handles residential, commercial, agricultural, and luxury property in Chapter 7, 11, and 13 cases statewide.

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Accurate, Defensible Valuations

CMAs and appraisal coordination that hold up to scrutiny from trustees and courts.

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Motion-Ready Documentation

For Chapter 13 sales, we provide the sale details your motion needs.

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Trustee Collaboration

We work directly with Chapter 7 trustees and understand their requirements.

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Deadline Awareness

We understand bankruptcy timelines and build our process around them.

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Clear Communication

You won't chase us for updates. We keep you informed throughout.

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Discreet Handling

Your client is never asked to explain themselves. We disclose exactly what the transaction requires and nothing past it.

Let's Discuss How We Can Support Your Clients

A quick call can establish whether we're the right fit for your bankruptcy real estate referrals.

Schedule Attorney Consultation

Get a Free, Confidential Home Value Check

Tell us where the property is and how to reach you. We'll check its value against recent sales so you and your attorney are working from a real number. No obligation, and no questions about how you got here.

A note on privacy: we do not send an automatic confirmation email, and nothing we send will identify what this is about. If a shared inbox or shared device is a concern, choose "text only" or "call only" above and we will respect that.

Confidential. We don't share your information, and nothing you tell us obligates you to anything.

Got it. Someone from Realty Concierge Group will reach out the way you asked.
If you'd rather talk now, call 800-417-0117.
Would rather just talk? 800-417-0117

About the information on this page

Joel Schmidt

Broker/Owner, Realty Concierge Group · Licensed in Michigan since 2004 · Broker since 2015

I have handled bankruptcy property sales in Michigan for two decades, working with Chapter 7 trustees, debtors in possession, and bankruptcy attorneys in both the Eastern and Western Districts. The valuations my team prepares get filed with schedules and motions, which means they have to hold up to a trustee reading them closely.

Everything on this page is written from that work. Where a figure comes from a statute, the statute is cited so you can check it yourself. Where something is a legal question rather than a real estate one, this page says so and points you back to your attorney, because that is where it belongs.

By Joel Schmidt, Broker/Owner, Realty Concierge Group, Brighton, Michigan. Last updated October 16, 2026.
Every legal figure and statement on this page was checked against the primary sources listed below. Joel is a licensed real estate broker, not an attorney, and nothing on this page is legal advice.

Sources

  1. Michigan Compiled Laws § 600.5451, bankruptcy exemptions, including (1)(m) homestead, (1)(n) entireties property, (2) liens, (4) inflation adjustment, and (5)(b) and (5)(d) definitions. legislature.mi.gov
  2. Michigan Department of Treasury, notice of adjusted bankruptcy exemption amounts, signed January 30, 2026, for cases filed on or after April 1, 2026. michigan.gov (PDF)
  3. Judicial Conference of the United States, Revision of Certain Dollar Amounts in the Bankruptcy Code, Federal Register Vol. 90, No. 22 (February 4, 2025), effective April 1, 2025. govinfo.gov
  4. 11 U.S.C. § 522, exemptions, including (b) choice of exemptions, (d)(1) residence, (d)(5) wildcard, and (m) joint cases. law.cornell.edu
  5. 11 U.S.C. § 104, three-year adjustment of dollar amounts. law.cornell.edu
  6. 11 U.S.C. § 1325(a)(4), Chapter 13 plan must pay unsecured creditors at least the Chapter 7 liquidation amount. law.cornell.edu
  7. Michigan Senate Bill 1138 of 2026, bill history and status. legislature.mi.gov
  8. Senate Fiscal Agency, analysis of Senate Bill 1138 as passed by the Senate (October 1, 2026). legislature.mi.gov
  9. 11 U.S.C. § 1327 (effect of confirmation), § 1328(b) (hardship discharge), and § 1329 (modifying a confirmed plan). law.cornell.edu
  10. Federal Rule of Bankruptcy Procedure 2002(a)(2), 21-day notice of a proposed sale of estate property outside the ordinary course. law.cornell.edu
  11. U.S. Bankruptcy Court for the Western District of Michigan, Local Bankruptcy Rules (effective October 11, 2026), LBR 6004(a) and (b). miwb.uscourts.gov (PDF)
  12. In re Elassal, No. 21-42801 (Bankr. E.D. Mich. Aug. 28, 2023), post-confirmation appreciation in a Chapter 13 home sale. mieb.uscourts.gov (PDF)
  13. In re Lindstrom (Bankr. E.D. Mich. 2005), spouses filing jointly share one Michigan homestead exemption. courtlistener.com

Checked October 16, 2026. Laws and amounts change; confirm with a Michigan bankruptcy attorney before you file.

Michigan Bankruptcy Real Estate FAQ

It depends on the chapter. In Chapter 7, filing makes the home part of the bankruptcy estate, so only the trustee can sell it, after notice to creditors and a chance to object, unless the trustee abandons it back to you. In Chapter 13, selling while the case is open usually requires court approval, which your attorney requests; how depends on your plan and the court. In Chapter 11, a debtor in possession needs court approval to sell outside the ordinary course of business before a plan is confirmed. Realty Concierge Group works with bankruptcy attorneys and trustees across Michigan in all three.
You do not have to wait for the case to end. You can sell during a Chapter 13 case, usually with court approval that your bankruptcy attorney requests. Once you receive your discharge and the case is closed, the bankruptcy court is no longer involved, and you can sell like any other homeowner without a motion or court approval. A discharge does not remove your mortgage or other liens, so those are still paid off at closing.
The mortgage, liens, and closing costs are paid at closing. What happens to the rest depends on your plan, your exemptions, and the court’s order: it may pay off the plan early, the trustee may ask to modify the plan under 11 U.S.C. 1329 so unsecured creditors receive more, or you may keep it. Courts disagree about who benefits when a home rises in value after confirmation. In In re Elassal (Bankr. E.D. Mich. 2023), the court let a homeowner use proceeds from post-confirmation appreciation to buy a replacement home, over the trustee’s objection; the ruling was limited to money used for the new home. Ask your attorney how your plan treats the proceeds before you accept an offer.
Generally no. MCL 600.5451(1)(m) applies its limit to the debtor, any codebtor, and the debtor’s dependents, and a Michigan bankruptcy court in In re Lindstrom (2005) read it as one combined cap for spouses. So a married couple filing jointly under Michigan’s list generally shares a single $51,150 homestead exemption, or $76,725 if either spouse or a dependent is 65 or older or disabled. The federal list is different: each spouse in a joint case who owns the home can claim $31,575, for up to $63,150. Separately, under Michigan’s list, a home owned by spouses as tenants by the entirety can be protected from debts owed by only one spouse under MCL 600.5451(1)(n), but not from joint debts. Senate Bill 1138, pending in the Michigan House, would let each spouse claim the full Michigan exemption.
Under MCL 600.5451(5)(b), disabled means unable to engage in substantial gainful activity because of a physical or mental impairment and receiving Supplemental Security Income (SSI). It is narrower than the everyday meaning of the word. The higher $76,725 amount also applies if the debtor or a dependent is 65 or older on the date the bankruptcy petition is filed.
Only if you can work it out with the lender. The homestead exemption protects your equity from the trustee, not the house from your mortgage lender, and Chapter 7 has no repayment plan that can force the lender to accept catch-up payments. Unless you reach an agreement, the lender can ask the bankruptcy court for permission to continue a foreclosure. Chapter 13 is the chapter designed to let homeowners catch up arrears over time, so talk with a bankruptcy attorney about which chapter fits. If foreclosure is the main problem, Realty Concierge Group’s foreclosure help page covers the options outside bankruptcy.
The Chapter 7 trustee can sell the home, pay off the mortgage and liens, pay you the exempt amount, and use the rest for creditors. Trustees generally pursue a sale only when it would produce meaningful money after selling costs, and some will accept a payment equal to the unprotected equity instead of selling. In Chapter 13 you keep the home, but under 11 U.S.C. 1325(a)(4) your plan must pay unsecured creditors at least what they would have received in a Chapter 7 liquidation. An accurate valuation is the starting point for either conversation.
It depends on your equity, your exemptions, and your goals, and it is a question for your bankruptcy attorney before you sign anything. A sale before filing has to be disclosed in your bankruptcy paperwork, and a sale for less than fair value can be undone as a fraudulent transfer; federal law looks back two years. If you sell before filing, Michigan keeps the exempt portion of homestead sale proceeds protected for one year after you receive them under MCL 600.5451(3). After a Chapter 7 filing, the trustee, not you, controls a sale. Realty Concierge Group can help carry out whichever path your attorney recommends.
Not necessarily. For cases filed on or after April 1, 2026, you can generally keep your home in Michigan Chapter 7 if its equity is no more than the homestead exemption you claim: $51,150 under Michigan’s list in MCL 600.5451(1)(m), $76,725 if you or a dependent is 65 or older or disabled, or $31,575 per filer under the federal list in 11 U.S.C. 522(d)(1). Equity means current market value minus your mortgage payoff and any other liens. You also need to stay current on the mortgage, because Chapter 7 does not catch up missed payments. Realty Concierge Group provides the valuation; your bankruptcy attorney decides how the exemption applies to your case.
For bankruptcy cases filed on or after April 1, 2026, Michigan protects $51,150 of home equity, or $76,725 if the debtor or a dependent is 65 or older or disabled, under MCL 600.5451(1)(m). The figures printed in the statute, $30,000 and $45,000, are base amounts that the Michigan State Treasurer adjusts for inflation every three years; the next scheduled adjustment applies to cases filed on or after April 1, 2029. Senate Bill 1138 of 2026, which would modify these exemptions, passed the Michigan Senate on September 10, 2026 and is pending in the House, so confirm current figures with your bankruptcy attorney.
Michigan lets you choose either the state exemption list or the federal bankruptcy list, but you can’t mix the two lists, and spouses filing together must use the same one. For a single homeowner with meaningful equity, Michigan’s $51,150 homestead usually protects more than the federal $31,575. For a married couple filing jointly who both own the home, the federal homestead can be doubled to $63,150 under 11 U.S.C. 522(m), while Michigan’s is generally one shared amount, so the federal list sometimes wins. Filers with little or no home equity often do better on the federal list because of its wildcard exemption. This is a decision for your bankruptcy attorney, and the home’s value is what the comparison depends on.
While your case is open, your bankruptcy attorney usually asks the court to approve the sale, typically by motion, with details such as the buyer, price, terms, and how the proceeds will be paid out. The trustee and creditors receive notice and a chance to object, often 21 days, depending on the court and your plan. In the Western District of Michigan, a motion about real property must include its legal description and street address, and you must send the Chapter 13 trustee the closing statement within 14 days after closing under LBR 6004(b). Realty Concierge Group provides the valuation and sale details the motion needs.
A trustee is appointed in every Chapter 7 case. If the home has equity above the exemption, the trustee may sell it, pay off the mortgage and liens, pay you the exempt amount, and use the rest for creditors. A real estate broker working for a trustee has to be approved by the bankruptcy court. Realty Concierge Group works directly with Michigan bankruptcy trustees on valuations, marketing, and managing the sale to their requirements.
It depends where you are in the process. If you are selling before you file, there is no bankruptcy to disclose. If a trustee is the seller or the sale requires bankruptcy court approval, the purchase agreement has to reflect that condition, because it affects the buyer’s timeline and the terms of their offer. What Realty Concierge Group does not disclose is anything past the procedural facts: no reason, no circumstances, no distress language in the listing or the marketing, and nothing said to neighbors beyond that the owners are moving. Bankruptcy filings are also public record, which is outside anyone’s control.
Bankruptcy filings are public record, and if a trustee is the seller or the sale needs court approval, the purchase agreement has to reflect that, so buyers will know. Past that, Realty Concierge Group keeps your situation private: no reasons or circumstances shared, no distress language in the listing or marketing, and nothing said to neighbors beyond that the owners are moving.
Realty Concierge Group serves all of Michigan for bankruptcy real estate transactions. While headquartered in Brighton serving Southeast Michigan including Livingston, Oakland, and Washtenaw Counties, RCG handles statewide bankruptcy real estate sales for residential properties, commercial real estate, agricultural land, and luxury estates across the state.
Yes. Realty Concierge Group handles Chapter 11 bankruptcy real estate sales across Michigan including commercial properties, business real estate, agricultural land, farms, and high-value residential estates. Chapter 11 reorganization sales typically involve debtors in possession, court oversight, and larger asset values — RCG provides court-compliant valuations, marketing, and transaction management.
Realty Concierge Group specializes in bankruptcy real estate sales across Michigan including Chapter 7 trustee sales, Chapter 11 business reorganization, and Chapter 13 court-approved sales. Based in Brighton, Michigan with real estate experience since 2004, RCG works directly with bankruptcy attorneys, trustees, debtors in possession, and individual homeowners on residential, commercial, agricultural, and luxury property bankruptcy sales statewide.
Yes. While the residential bankruptcy practice serves Southeast Michigan, Realty Concierge Group also handles commercial real estate, agricultural land, farms, and luxury estates in bankruptcy proceedings throughout Michigan. RCG provides court-defensible valuations, trustee coordination, and discreet transaction management for higher-value bankruptcy assets statewide.
Yes. Realty Concierge Group works directly with Michigan bankruptcy attorneys and welcomes attorney referrals. The team provides court-ready CMAs, motion-supporting documentation, trustee coordination, deadline-aware marketing, and discreet client handling. Attorneys can reach the bankruptcy real estate team at 800-417-0117 to discuss client needs.

There's a Path Forward for Your Michigan Bankruptcy Real Estate. Let's Find It Together.

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