Michigan Bankruptcy Case

6th Circuit: Richardson v. Schafer (In re Schafer)

Citation:

2011 Fed. App. 0002P(6th Cir BAP 2011)

Ruling:

Michigan's bankruptcy specific exemption statute (Mich. Comp. Laws Section 600.5451) is unconstitutional under the Bankruptcy Clause of the United States Constitution (Article I, sec. 8, cl.4). Judgment of the bankrutpcy court is reversed. The Court found that since Michigan had not opted out of the federal exemption statute established under 11 U.S.C. Sec. 522(d), Michigan debtors could elect either state or federal exemptions.