Q: Annual employment bonus paid a month after filing chapter 7. Disclosed on amended petition. Can any portion be exempted?
and if so, under what code? Using MI state exemptions. Not a gov't/civil employee.
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A:
When dealing with an annual employment bonus received after filing for Chapter 7 bankruptcy, you might be able to exempt a portion of it using Michigan state exemptions. Since you’re not a government or civil employee, the regular Michigan exemptions apply to your case.
In Michigan, you can use the "wildcard" exemption under MCL 600.5451(1)(n), which allows you to exempt up to $1,250 in any property, plus up to $11,850 of any unused amount of the homestead exemption. This means you could potentially protect a portion of your bonus if these amounts haven't been used for other property.
To proceed, carefully calculate the available exemption amounts and apply them to your bonus on the amended petition. It’s a good idea to consult with a bankruptcy attorney or a legal aid organization to ensure you’re accurately claiming exemptions and fully understand your rights. This will help you navigate the process and protect as much of your bonus as possible.
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