Michigan House Bill HB4900

Michigan 2023-2024 Regular Session

• Introduced: 7/18/23
• Refer: 7/18/23
• Engrossed: 12/13/24
• Refer: 12/18/24
• Report Pass: 12/20/24
• Enrolled: 12/23/24

Caption

Civil procedure: execution; procedures for collection of judgments; revise. Amends secs. 4011, 4015, 4031, 4061a, 6023, 6027, 6059 & 6104 of 1961 PA 236 (MCL 600.4011 et seq.) & adds secs. 4001a, 4032, 4033, 6001a, 6023b, 6023c, 6023d, 6023e, 6023f & 6023g.

Impact

If enacted, HB 4900 will significantly impact state laws governing debt collection practices in Michigan. It seeks to balance the rights of creditors to collect debts with protections for debtors, ensuring that essential needs and earnings are safeguarded from aggressive collection tactics. The amendments will clarify the thresholds for exempt income, potentially impacting how aggressively debts can be pursued, and allowing for a more streamlined process for garnishment and other collection actions. Overall, it aims to reflect contemporary financial realities, considering the challenges faced by individuals in paying down debts.

Summary

House Bill 4900 seeks to amend the Revised Judicature Act of 1961 in Michigan, focusing specifically on procedures related to the collection of judgments. The bill revises multiple sections to modernize and clarify the execution processes involved in debt collection, notably in cases of garnishing wages, property, or other assets of individuals who have outstanding debts. It aims to provide clearer guidelines on what constitutes 'garnishable earnings' and what exemptions may apply to protect essential income from being garnished, thereby offering some level of financial security to debtors.

Sentiment

The sentiment surrounding HB 4900 appears to be generally supportive from those engaged in local legislative discussions, recognizing the need for improved clarity and updated practices regarding the enforcement of judgments. However, there may be concerns from some creditors about the extent of protections afforded to debtors. The debate could highlight the complexities between enforcing financial responsibility and addressing the needs of individuals facing financial hardship.

Contention

Among the notable points of contention are the specifics of what constitutes exempt income, as this could determine the effectiveness of the bill in protecting vulnerable populations from overreach in debt collection. There may be discussions regarding the adequacy of the proposed exemptions and whether they adequately balance the interests of creditors and the financial realities of debtors. Critics may assert that overly broad protections could limit creditors' ability to recover debts, while supporters may argue that stronger protections are necessary to prevent financial exploitation.