Bill Text: MI SB0962 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Civil procedure; garnishment; COVID-19 recovery rebates; protect from execution and garnishment. Amends sec. 6023 of 1961 PA 236 (MCL 600.6023).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-06-09 - Referred To Committee On Judiciary And Public Safety [SB0962 Detail]
Download: Michigan-2019-SB0962-Introduced.html
SENATE BILL NO. 962
June 09, 2020, Introduced by Senator IRWIN and
referred to the Committee on Judiciary and Public Safety.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 6023 (MCL 600.6023), as amended by 2012 PA 553.
the people of the state of michigan enact:
Sec. 6023. (1) The following property of a judgment
debtor and the judgment debtor's dependents is exempt from levy and sale under
an execution:
(a) All family pictures,
all arms and accouterments required by law to be kept by any person, all
wearing apparel of every person and his or her family, and provisions and fuel
for comfortable subsistence of each householder and his or her family for 6
months.
(b) All household goods,
furniture, utensils, books, and appliances, not exceeding in value $1,000.00.
(c) A seat, pew, or slip
occupied by the judgment debtor or the judgment debtor's family in a house or
place of public worship, and all cemeteries, tombs, and rights of burial while
in use as repositories of the dead of the judgment debtor's family or kept for
burial of the judgment debtor.
(d) To each householder,
10 sheep, 2 cows, 5 swine, 100 hens, 5 roosters, and a sufficient quantity of
hay and grain, growing or otherwise, for properly keeping the animals and
poultry for 6 months.
(e) The tools,
implements, materials, stock, apparatus, team, vehicle, motor vehicle, horses,
harness, or other things to enable a person to carry on the profession, trade,
occupation, or business in which the person is principally engaged, not
exceeding in value $1,000.00.
(f) Any money or other
benefits paid, provided, or allowed to be paid, provided, or allowed, by any
stock or mutual life or health or casualty insurance company, on account of the
disability due to injury or sickness of the insured person, whether the debt or
liability of such the insured person or beneficiary was
incurred before or after the accrual of benefits under the insurance policy or
contract, except that the exemption under this subdivision does not apply to
actions to recover for necessities contracted for after the accrual of the
benefits.
(g) A homestead of not
more than 40 acres of land and the dwelling house and appurtenances on that
homestead that is not included in a recorded plat, city, or village, or, at the
option of the owner, a quantity of land that consists of not more than 1 lot
that is within a recorded town plat, city, or village, and the dwelling house
and appurtenances on that land, owned and occupied by any resident of this
state, not exceeding in value $3,500.00. This exemption applies to any house
that is owned, occupied, and claimed as a homestead by a person but that is on
land not owned by the person. However, this exemption does not apply to a
mortgage on the homestead that is lawfully obtained. A mortgage is not valid
for purposes of this subdivision without the signature of a married judgment
debtor's spouse unless either of the following occurs:
(i) The mortgage is given to secure the payment of the purchase
money or a portion of the purchase money.
(ii) The mortgage is
recorded in the office of the register of deeds of the county in which the
property is located, for a period of 25 years, and no notice of a claim of
invalidity is filed in that office during the 25 years following the recording
of the mortgage.
(h) An equity of redemption as described in section 6060.
(i) The homestead of a family, after the death of the owner
of the homestead, from the payment of his or her debts in all cases during the
minority of his or her children.
(j) An individual retirement account or individual retirement
annuity as defined in section 408 or 408a of the internal revenue code of 1986,
26 USC 408 and 408a, and the payments or distributions from the account or
annuity. This exemption applies to the operation of the federal bankruptcy code
as permitted by section 522(b)(2) of the bankruptcy code, 11 USC 522. This
exemption does not apply to any amounts contributed to the individual
retirement account or individual retirement annuity if the contribution occurs
within 120 days before the debtor files for bankruptcy. This exemption does not
apply to an individual retirement account or individual retirement annuity to
the extent that any of the following occur:
(i) The individual
retirement account or individual retirement annuity is subject to an order of a
court pursuant to a judgment of divorce or separate maintenance.
(ii) The individual
retirement account or individual retirement annuity is subject to an order of a
court concerning child support.
(iii) Contributions to
the individual retirement account or premiums on the individual retirement
annuity, including the earnings or benefits from those contributions or
premiums, exceed, in the tax year made or paid, the deductible amount allowed
under section 408 of the internal revenue code of 1986, 26 USC 408. This
limitation on contributions does not apply to a rollover of a pension,
profit-sharing, stock bonus, or other plan that is qualified under section 401
of the internal revenue code of 1986, 26 USC 401, or an annuity contract under
section 403(b) of the internal revenue code of 1986, 26 USC 403.
(k) The right or interest of a person in a pension, profit-sharing,
stock bonus, or other plan that is qualified under section 401 of the internal
revenue code of 1986, 26 USC 401, or an annuity contract under section 403(b)
of the internal revenue code of 1986, 26 USC 403, if the plan or annuity is
subject to the employee retirement income security act of 1974, Public Law
93-406. , 88 Stat. 829. This
exemption applies to the operation of the federal bankruptcy code, as permitted
by section 522(b)(2) of the bankruptcy code, 11 USC 522. This exemption does
not apply to any amount contributed to a pension, profit-sharing, stock bonus,
or other qualified plan or a 403(b) annuity if the contribution occurs within
120 days before the debtor files for bankruptcy. This exemption does not apply
to the right or interest of a person in a pension, profit-sharing, stock bonus,
or other qualified plan or a 403(b) annuity to the extent that the right or
interest in the plan or annuity is subject to either of the following:
(i) An order of a
court pursuant to a judgment of divorce or separate maintenance.
(ii) An order of a
court concerning child support.
(l) Any interest in
the following:
(i) A trust, fund, or
advance tuition payment contract established under the Michigan education trust
act, 1986 PA 316, MCL 390.1421 to 390.1442.
(ii) An account
established under the Michigan education savings program act, 2000 PA 161, MCL
390.1471 to 390.1486.
(iii) An account in a
qualified tuition program or educational savings trust under section 529 or 530
of the internal revenue code of 1986, 26 USC 529 and 530.
(m) An advance payment to an individual for an income tax
credit, or recovery rebate, under 26 USC 6428, as added by section 2201 of the
coronavirus aid, relief, and economic security act, Public Law 116-136, or any
similar payment under any later federal law as a response to COVID-19, and the
proceeds of the payment held in an account with a financial institution.
(2) The exemptions provided in this section do not extend to
any lien on the exempt property that is excluded from exemption by law.
(3) If the owner of a homestead dies, leaving a surviving
spouse but no children, the homestead is exempt, and the rents and profits of
the homestead shall accrue
to the benefit of the surviving spouse before his or her remarriage, unless the
surviving spouse is the owner of a homestead in his or her own right.
