Bill Text: MI HB4900 | 2023-2024 | 102nd Legislature | Introduced

Michigan House Bill 4900

Introduced

Bill Title: Civil procedure: execution; procedures for collection of judgments; revise. Amends secs. 2807, 4011, 4015, 4031, 4061a, 6023, 6027, 6059 & 6104 of 1961 PA 236 (MCL 600.2807 et seq.) & adds secs. 4001a, 4032, 4033, 6001a, 6023b, 6023c, 6023d, 6023e, 6023f, 6023g & 6023h.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2023-07-19 - Bill Electronically Reproduced 07/18/2023 [HB4900 Detail]

Download: Michigan-2023-HB4900-Introduced.html

HOUSE BILL NO. 4900

July 18, 2023, Introduced by Reps. Hope, Brenda Carter, Dievendorf, Hill, Brabec, Hood, McFall, MacDonell, McKinney, Byrnes, Wilson, Paiz, Tyrone Carter, Scott, Neeley, O'Neal and Whitsett and referred to the Committee on Insurance and Financial Services.

A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending sections 2807, 4011, 4015, 4031, 4061a, 6023, 6027, 6059, and 6104 (MCL 600.2807, 600.4011, 600.4015, 600.4031, 600.4061a, 600.6023, 600.6027, 600.6059, and 600.6104), section 2807 as added by 2004 PA 136, section 4011 as amended and section 4061a as added by 1994 PA 346, and section 6023 as amended by 2012 PA 553, and by adding sections 4001a, 4032, 4033, 6001a, 6023b, 6023c, 6023d, 6023e, 6023f, 6023g, and 6023h.

the people of the state of michigan enact:

Sec. 2807. (1) A judgment lien does not attach to an either of the following:

(a) An interest in real property owned as tenants by the entirety unless the underlying judgment is entered against both the husband and wife.

(b) An interest in real property to the extent of any available exemption from execution under chapter 60.

(2) With the following exceptions, a judgment lien has priority over a lien recorded with the register of deeds after the notice of judgment lien is recorded:

(a) A purchase money mortgage.

(b) A mortgage to the extent that proceeds of the mortgage are used to pay 1 or more of the following:

(i) Purchase money mortgage debt.

(ii) A subsequent refinancing of purchase money mortgage debt.

(iii) A nonpurchase money mortgage recorded before attachment of the judgment lien.

(d) A lien that has or acquires priority by operation of law.

(e) A claim of lien recorded with the register of deeds under section 111 of the construction lien act, 1980 PA 497, MCL 570.1111.

(f) A lien for unpaid assessments or charges due to a condominium association, homeowners' association, or property owners' association that arises from or pursuant to under recorded restrictions that run with the land.

(g) A state or federal tax lien.

(3) If property subject to a judgment lien recorded under this chapter is sold or refinanced, proceeds of the sale or refinancing due to a judgment creditor are limited to the judgment debtor's equity in the property at the time of the sale or refinancing after all liens senior to the judgment lien, property taxes, and costs and fees necessary to close the sale or refinancing are paid or extinguished.

Sec. 4001a. As used in this chapter:

(a) "Consumer" means an individual.

(b) "Consumer debt" means an obligation or alleged obligation of an individual to pay money arising out of a transaction in which the money, property, insurance, or services that are the subject of the transaction are primarily for personal, family, or household purposes, whether or not the obligation has been reduced to judgment.

(c) "Creditor" means a person to whom a debt is owed and includes a judgment creditor and any other person that obtains an execution on a debt. As used in this subdivision, "execution" includes an attachment, levy, garnishment, or other disablement, freeze, or seizure of property, whether pre- or post-judgment, to satisfy a debt. Execution includes a creditor's exercise of a right of setoff to collect a debt. Execution does not include self-help repossession of collateral.

(d) "Debt buyer" means a person that is engaged in the business of purchasing delinquent or charged-off consumer debt for collection purposes, whether that person collects the debt itself or hires a third party for collection or an attorney-at-law for litigation to collect the debt.

(e) "Earnings" means that term as defined in section 6001a.

(f) "Exempt" means that term as defined in section 6001a.

(g) "Garnishment" means a legal or equitable procedure through which the earnings, property, or money of an individual are required to be withheld by another person for payment of any debt to a creditor.

(h) "Garnishable earnings" means that part of the earnings of any individual remaining after the deduction from the earnings of any amounts required by law to be withheld, such as taxes, Social Security, or alternative pension and Medicare withholdings, and after further deduction of up to 15% of the remainder for contributions for health insurance, a medical expense account, a pension, or a retirement account.

(i) "Original creditor" means the person to which the consumer originally owed money before the debt was sold to a debt buyer or other person. If this chapter requires the original creditor to be identified, the name must be that which the original creditor used in its dealings with the consumer.

Sec. 4011. (1) Subject to sections 4061 and 4061a, and the conditions in the limitations in this chapter, including subsections (2) to (10), the a court has power may by garnishment to apply the following property or obligation, or both, to the satisfaction of a claim evidenced by contract, judgment of this state, or foreign judgment, whether or not the this state has jurisdiction over the person against whom the claim is asserted:

(a) Personal property belonging to the person against whom the claim is asserted but which that is in the possession or control of a third person if the third person is subject to the judicial jurisdiction of the this state and the personal property to be applied is within the boundaries of this state.

(b) An obligation owed to the person against whom the claim is asserted if the obligor is subject to the judicial jurisdiction of the this state.

(2) Except as provided in sections 4061 and 4061a, the court may exercise the jurisdiction granted in this section only in accordance with the Michigan court rules. Except as otherwise provided by sections 4061 and 4061a and the Michigan court rules, the this state and each governmental unit within the this state, including, but not limited to, a public, municipal, quasi-municipal, or governmental corporation, unincorporated board, public body, or political subdivision, may be proceeded against as a garnishee in the same manner and with the same effect as a proceeding against an individual garnishee.

(3) A writ of garnishment may be issued before judgment only as provided in this subsection. Upon On ex parte application showing that the person against whom the claim is asserted is not subject to the judicial jurisdiction of the this state or, after diligent effort, cannot be served with process as required to subject the person to the judicial jurisdiction of the this state, a copy of the writ of garnishment shall must be served upon on the person against whom the claim is made in the same manner as provided by the Michigan court rules for service of process in other civil actions in which personal jurisdiction over the defendant is not required. Upon On entry of judgment in the principal action, the obligation or property garnished shall must be applied to the satisfaction of the judgment.

(4) A person shall not commence a garnishment proceeding shall not be commenced against the this state or a governmental unit of the this state, including, but not limited to, a public, municipal, quasi-municipal, or governmental corporation, unincorporated board, public body, or political subdivision, until after the plaintiff's claim has been reduced to judgment.

(5) A person shall not commence a garnishment proceeding shall not be commenced against a another person for money owing to a defendant on account because of labor performed by the defendant until after the plaintiff's claim has been reduced to judgment.

(6) A sheriff or other public officer is not subject to garnishment for money or things received or collected by him or her pursuant to the sheriff or other public officer in carrying out an execution or other legal process in the favor of the defendant or because of any money in his or her the sheriff's or other public officer's hands for which he or she the sheriff or other public officer is accountable merely as a public officer to the defendant.

(7) A person shall not commence a garnishment proceeding shall not be commenced if the commencement of such a the proceeding is forbidden by a statute of this state.

(8) Except as otherwise provided in sections 4012 and 4061, a plaintiff shall pay a fee of $1.00 to the garnishee at the time the garnishee is served with a writ of garnishment.

(9) If the court or garnishee possesses money or property pursuant to under a writ of garnishment after the court releases the garnishee from liability under that the writ, the court shall convey or order the conveyance of the money or property to any of the following, as the court determines appropriate:

(a) The defendant's attorney, if the defendant is represented by counsel in the garnishment proceeding.

(b) The defendant, if the defendant is not represented by counsel in the garnishment proceeding.

(10) A writ of garnishment is not effective if both of the following conditions are met:

(a) The plaintiff fails to provide the garnishee with information sufficient for the garnishee to identify the defendant.

(b) The garnishee provides the court with written notice of the insufficiency described in subdivision (a).

Sec. 4015. (1) A garnishee defendant shall not use the fact that the principal defendant has had 1 or more actions brought against him the principal defendant under the provisions of this chapter or section 8306 as a cause of reason to discipline the principal defendant or discharge of the principal defendant from employment or from an independent contract, or as a reason to not hire or contract with the principal defendant.

(2) A On a motion filed in the action or in a separate civil action, a court shall enter a judgment against a garnishee defendant who violates the provisions of this section shall be required requiring the garnishee defendant to reinstate do all of the following:

(a) Reinstate the principal defendant to employment. and reimburse

(b) Reimburse all compensation, including wages, earnings, and employment benefits, lost by because of the discipline, or discharge, or failure to hire or contract. The principal defendant may enforce his rights under this section by appropriate civil action.

(d) Pay reasonable actual attorney fees and costs.

Sec. 4031. (1) The provisions of the this act and any other statutes relating that relate to exemptions from execution, and the manner of levying upon on property belonging that belongs to a class or species in which exemptions are allowed by law, allowed, shall be applicable apply to the application of property and obligations to claims by attachment and garnishment.

(2) In any a garnishment proceeding where in which the indebtedness of the garnishee to the principal defendant is money owed to the principal defendant on account because of

(a) the sale to the garnishee of milk or cream, or both, produced on the farm or farms of the principal defendant, the garnishee's liability to the plaintiff is limited to 40% of such the money. ;

(b) personal labor performed by the principal defendant or his family, the garnishee's liability to the plaintiff is limited by the exemptions allowed under section 7511.

Sec. 4032. (1) The money that a debtor receives as payment of any means-tested public assistance benefits, unemployment compensation benefits, federal earned income tax credit under 26 USC 32, state tax credit under section 272 of the income tax act of 1967, 1967 PA 281, MCL 206.272, or a similar credit under a program of this state or a local unit of government providing an earned income tax credit, disability benefits, or worker's compensation benefits is exempt from garnishment.

(2) A debtor's garnishable earnings for any week that are less than 80 times the greater of the federal minimum hourly wage prescribed by 29 USC 206(a)(1) or the state minimum hourly wage provided by the workforce opportunity wage act, 2014 PA 138, MCL 408.411 to 408.424, that is in effect at the time are exempt and not subject to garnishment. This exemption must be adjusted pro rata for a pay period longer than a week.

(3) If the debtor's garnishable earnings exceed the amount provided in subsection (2), not more than 10% of garnishable earnings in excess of the amount exempt under subsection (2) is subject to garnishment unless the weekly garnishable earnings of the debtor exceed $1,200.00, adjusted, as applicable, under section 6023f, in which case not more than 15% of garnishable earnings are subject to garnishment. The amount not subject to garnishment is exempt.

(4) The amount of a debtor's garnishable earnings that can be garnished for the support of a person is subject to the laws of this state governing child support and alimony.

(5) If more than 1 garnishment is served on a garnishee with respect to the same debtor, the garnishment served earliest takes priority, except that a garnishment for support of an individual takes priority over any other garnishment regardless of the date of service. If a garnishment with greater priority consumes the garnishable earnings that are available for garnishment under this section, no part of the debtor's garnishable earnings may be garnished under the garnishment with lower priority.

(6) The protections for earnings provided in this section apply to all debtors whose physical place of employment is in this state, regardless of whether the debtor's employer has offices or other places of business located outside this state.

(7) At least 15 days and not more than 45 days before requesting a court to issue a writ of garnishment, the person requesting the issuance must serve the judgment debtor, in a manner that complies with Michigan court rules, with a notice in plain language using a form developed by the state court administrative office, under the direction of the supreme court.

Sec. 4033. (1) A financial institution that is holding money of the debtor in a deposit account that is served with a garnishment shall calculate the amount of money deposited into the account in the 90 days preceding service that was deposited from a source described in section 4032(1) or any other source that is exempt from garnishment. The financial institution shall include its calculations in its disclosure.

(2) The amount of money held in a deposit account as calculated under subsection (1) must not be paid or ordered to be paid to the plaintiff under the garnishment.

(3) A financial institution shall not charge a debtor a fee for any actions taken by the financial institution in connection with a garnishment served on the financial institution.

Sec. 4061a. (1) The Subject to subsection (6), the state treasurer shall intercept a state tax refund or credit that is subject to a writ of garnishment served upon on the state treasurer pursuant to under section 4061. Upon On intercepting a state tax refund or credit pursuant to under a writ of garnishment, the state treasurer shall do all of the following:

(a) Calculate the amount available from the interception to satisfy all or part of the garnishment, and within not later than 90 days after establishing other liability for which the state tax refund or credit may be applied under section 30a of Act No. 122 of the Public Acts of 1941, being section 1941 PA 122, MCL 205.30a, of the Michigan Compiled Laws, do both of the following:

(i) File with the court a verified disclosure that identifies the intercepted amount, less any setoff, counterclaim, or other demand of the state against the defendant.

(ii) Serve upon on the plaintiff and defendant a copy of the disclosure described in subparagraph (i).

(b) Unless notified by the court that objections to the writ of garnishment have been filed, deposit the amount available for the garnishment with either of the following pursuant to in accordance with the terms of the writ not less than 28 days after filing the disclosure pursuant to under subdivision (a):

(i) The clerk of the court.

(ii) The plaintiff's attorney of record in the garnishment action, or, if the plaintiff is not represented by counsel, the plaintiff or the plaintiff's designee.

(2) Objections to the writ of garnishment of a tax refund shall must be filed with the court within not later than 14 days after the date of service of the disclosure on the defendant.

(3) If an interception of a state tax refund or credit does not occur before October 31 of the year during which a writ of garnishment for a state tax refund or credit is to be processed, both of the following apply:

(a) The state treasurer is not required to provide to the defendant or file with the court a disclosure.

(b) The state treasurer is not required to provide to the plaintiff a disclosure unless the plaintiff provides the state treasurer with a written request for a disclosure between November 1 and December 31 of the tax year following the tax year for which a the writ of garnishment of a state tax refund or credit was filed.

(4) A disclosure described in subsection (1) is not required to be made under oath.

(5) The Subject to subsection (6), this state's liability to the plaintiff under a writ of garnishment issued under this section is limited to the amount of the tax refund or credit due to the defendant for the period the writ is in effect, less any setoff, counterclaim, or other demand of the state against the defendant. As used in this subsection, "state" includes the state treasurer.

(6) If the writ of garnishment is issued on a judgment entered to recover a consumer debt as that term is defined in section 6023g, the state treasurer shall not intercept under subsection (1), and shall reduce the amount of the tax refund or credit due under subsection (5) by, any amount that is payment of a tax credit under section 272 of the income tax act of 1967, 1967 PA 281, MCL 206.272.

(7) (6) If all or a portion of an intercepted state tax refund or credit is deposited with the clerk of the court under subsection (1), the court shall convey the deposited amount to the plaintiff's attorney of record in the garnishment action or, if the plaintiff is not represented by counsel, to the plaintiff.

(8) (7) Michigan court rules that do not conflict with this section or section 4061 govern a garnishment in which the state is a garnishee.

(9) (8) As used in this section, "state treasurer" includes an employee designated by the state treasurer to act on his or her the state treasurer's behalf.

Sec. 6001a. As used in this chapter:

(a) "Dependent" means an individual who relies in whole or in significant part on a debtor for support and maintenance.

(b) "Earnings" means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, payment for skilled, personal, or professional services, or otherwise, whether earned as an employee or as an independent contractor, and includes alimony.

(d) "Execution" includes an attachment, levy, garnishment, or other disablement, freeze, or seizure of property, whether pre- or post-judgment, to satisfy a debt. Except for purposes of section 6023g, execution includes a creditor's exercise of a right of setoff to collect a debt. Execution does not include self-help repossession of collateral.

(e) "Exempt" means, unless otherwise specified, not subject to execution, levy, attachment, garnishment, setoff, self-help, seizure, or any other form of process, court order, creditor, or other action for the purpose of debt collection or restitution or other equitable claim. Money that is exempt remains exempt when it is paid or transferred to the debtor, the debtor's spouse, partner, beneficiary, or dependent or to an account for the benefit of the debtor, the debtor's spouse, partner, beneficiary, or dependent.

(f) "Garnishment" means that term as defined in section 4001a.

(g) "Homestead" means 1 of the following owned or being purchased under an executory contract by the debtor that the debtor or a dependent of the debtor occupies as the debtor's or the dependent's principal residence:

(i) If the land is located outside of a recorded plat, city, or village, a residence and appurtenances and the land on which they are situated, not exceeding 40 acres.

(ii) If the land is located within a recorded plat, city, or village, a residence and appurtenances and the land on which they are situated, not exceeding 1 lot or parcel.

(iii) A residence situated on land not owned by the debtor.

(iv) A condominium unit.

(v) A unit in a cooperative.

(vi) A motor home.

(vii) A boat or other watercraft.

(h) "Necessary property" or "necessary provisions" means property that is or provisions that are reasonably essential to or needed for everyday living, including, but not limited to, any special needs because of health or physical or mental infirmity.

(i) "Payroll card account" means an account that is directly or indirectly established through an employer or another person that pays earnings and to which electronic fund transfers of the employee's wages, salary, employee compensation, including commissions, or other earnings are made on a recurring basis, whether the account is operated or managed by the employer or other person that pays earnings, a third-party payroll processor, a depository institution, or any other person. Payroll card account includes any other payroll card account as defined in regulations issued under the electronic fund transfer act, 15 USC 1693 to 1693r.

(j) "Prepaid account" means a prepaid account as that term is defined under regulations issued under the electronic fund transfer act, 15 USC 1693 to 1693r, and includes all of the following:

(i) An account for distributing needs-tested benefits.

(ii) A loyalty, award, or promotional gift card if used to pay or receive earnings.

(iii) A general-use prepaid card, payment code, or other device as that term is defined in the electronic fund transfer act, 15 USC 1693l-1, and regulations promulgated under that section, if the card, code, or device is not labeled as a gift card.

(iv) A health savings account, flexible spending account, or medical savings account, or a health reimbursement arrangement.

(k) "Residence" includes real or personal property, including a share in a residential cooperative, a beneficial interest in a trust applying to the property, or a manufactured home, that is owned individually or in any form of joint ownership by the debtor or the debtor's dependent, spouse, or domestic partner.

(l) "Resident" means a person living in this state temporarily or permanently.

(m) "Value" means current fair market value of accounts, goods, or property less the amount of any liens or security interests in the accounts, goods, or property, based on the price that would be paid, assuming a willing buyer and a willing seller, for accounts, goods, or property of similar age and condition. A debtor's testimony as to the value of property the debtor owns or as to the advertised value of property similar to that claimed as exempt is admissible as evidence of an item's value.

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, individual, all wearing apparel of every person individual and his or her the individual's family, excluding furs, all household pets, companion animals, and service animals, and provisions and fuel for comfortable subsistence of each householder and his or her the householder's family for 6 months.

(b) All The debtor's aggregate interest in household goods, furniture, utensils, books, and appliances, not exceeding in value $1,000.00.$5,000.00.

(d) (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, cemetery lots, 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.

(e) (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, or in the alternative and at the election of the debtor, the debtor's aggregate interest, not to exceed $10,000.00 in value, in crops, farm animals, and feed for the farm animals.

(f) (e) The debtor's aggregate interest in tools, implements, materials, stock, apparatus, team, vehicle, motor vehicle, horses, harness, or other things to enable a person the debtor to carry on the profession, trade, occupation, or business in which the person debtor is principally engaged, not exceeding in value $1,000.00.$10,000.00.

(g) The debtor's aggregate interest in computers, including, but not limited to, mobile computing devices, mobile phones, and computer accessories, not to exceed $5,000.00.

(h) All professionally prescribed health aids.

(i) (f) Any money or other benefits paid, provided, or allowed to be paid , or provided , or allowed, by any stock or mutual life or health or casualty insurance company, on account because of the disability due to resulting from the 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.

(j) (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.$250,000.00 or, if the debtor or a dependent of the debtor at the time of the filing of the bankruptcy petition is 65 years of age or older or disabled, not exceeding $350,000.00 in value.

(k) (h) An equity of redemption as described in section 6060.

(l) (i) The homestead of a family, after the death of the owner of the homestead, from the payment of his or her the owner's debts in all cases during the minority of his or her the owner's children.

(m) (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 under 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.

(n) (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, and the payments or distributions from the plan 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 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 under a judgment of divorce or separate maintenance.

(ii) An order of a court concerning child support.

(o) (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.

(p) Any money paid or to be paid because the debtor or a dependent of the debtor was a crime victim.

(q) In addition to the exemptions provided in subdivisions (a) to (p), the debtor's aggregate interest in any property, not to exceed in value $2,000.00 plus up to $15,000.00 of any unused amount of the exemption provided under subdivision (j).

(2) The exemptions provided in this section do not extend to any mortgage of, lien on, or security interest in the exempt property that is excluded from exemption by law, or that is consensually given or lawfully obtained unless the lien is obtained by judgment, attachment, levy, or similar legal process in connection with a court action or proceeding against the debtor.

(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 the surviving spouse's remarriage, unless the surviving spouse is the owner of a homestead in his or her the surviving spouse's own right.

Sec. 6023b. (1) The exemptions provided under this chapter are available to a resident and apply regardless of where the property is located.

(2) In an action to collect a debt against an individual who is not a resident, the court shall apply the exempt property laws of the state with which the individual has the most significant contacts.

Sec. 6023c. Only the judgment debtor's interest in property is subject to execution or another creditor's remedy. If a judgment creditor is on notice, or is placed on notice by an objection, that another person claims an interest in property with or instead of the debtor, the judgment creditor must establish through a hearing as described in section 6023g that the debtor's share exceeds the amount protected by this section. The name in which the property is titled or maintained is not dispositive as to ownership or interests in the property. A debtor's interest in a joint bank or similar account is based on the debtor's contributions to the account, as determined by the tracing rules in section 6023e, in order to protect the interest of the person that is not the debtor. Each person with an interest in property may claim the person's full exemption amount applicable to that type of property.

Sec. 6023d. The exemptions provided by this chapter do not apply to an order for the support of a child or dependent of the debtor or a judgment regarding the division of property between spouses or former spouses or domestic partners entered by a court in accordance with an administrative or civil procedure that is established by state or federal law, that affords substantial due process, and that is subject to judicial review.

Sec. 6023e. (1) Money received from the sale or transfer of property that is exempt under this chapter or other law remains exempt for 18 months while in the debtor's possession, in a checking or similar account, in a savings account, in a certificate of deposit with a term that does not extend past the 18 months, or otherwise held in a way that the money is regularly available to the debtor and is traceable and may be converted into another type of exempt property.

(2) If property, or a part of property, that could have been claimed as exempt has been sold or taken by condemnation, or has been lost, damaged, or destroyed and the owner has been indemnified for the property, the traceable proceeds of the property are exempt for 18 months after the proceeds are received, and may be converted into another type of exempt property.

(3) Money or other property and proceeds that are exempt under this chapter or other law of this state are traceable under this section by application of the first-in, first-out rule.

Sec. 6023f. (1) The dollar amounts in this chapter and in section 4032 must be adjusted, as provided in this section, according to and to the extent of changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers: U.S. City Average, All Items, compiled by the Bureau of Labor Statistics, United States Department of Labor. The index for the December preceding the effective date of the amendatory act that added this section is the reference base index.

(2) The dollar amounts described in subsection (1) must be adjusted on July 1 of each even-numbered year if the percentage of change, calculated to the nearest whole percentage point, between the index for December of the preceding year and the reference base index is 10% or more. All of the following apply to the adjustment described in this subsection:

(a) The portion of the percentage change in the index in excess of a multiple of 10% is disregarded and the dollar amounts must be adjusted only in multiples of 10% of the amounts provided in this act before any adjustment.

(b) The dollar amounts must not be adjusted if the amounts required by this subsection are those currently in effect as a result of an earlier application of this subsection.

(3) If the index described in subsection (1) is revised, the percentage of change must be calculated on the basis of the revised index. If a revision of the index changes the reference base index, a revised reference base index must be determined by multiplying the reference base index applicable by the rebasing factor furnished by the United States Department of Labor Bureau of Labor Statistics. If the index is superseded, the index referred to in this section is the one represented by the United States Department of Labor Bureau of Labor Statistics as reflecting most accurately changes in the purchasing power of the dollar for consumers.

(4) The state treasurer shall perform the calculations required by this section and publish both of the following:

(a) On or before April 30 of each year in which dollar amounts are to change, the changes in dollar amounts required by subsection (2).

(b) Promptly after the changes occur, changes in the index required by subsection (3), including, if applicable, the numerical equivalent of the reference base index under a revised reference base index and the designation or title of any index superseding the index.

(5) All printed and online versions of this chapter or section 4032 published or distributed by any agency or department of this state must be updated to include the new amounts not later than their effective date.

Sec. 6023g. (1) A judgment creditor, court officer, sheriff, or other person shall not levy execution, garnish, attach, or otherwise seize property that may be exempt without a court order reasonably identifying the property and the manner of levy.

(2) On entry of a judgment in an action to collect a consumer debt, the clerk of the court shall mail a notice to the last known address of each judgment debtor stating that the judgment debtor is responsible for paying the judgment but that the court will not require it to be paid with exempt income, assets, or property. The clerk shall note the address to which the notice is mailed in the record. If the notice is returned undelivered, the clerk shall also note that in the record.

(3) When a judgment creditor obtains a writ of execution, the clerk of the court, court officer, sheriff, or other person shall give a notice to the judgment debtor, to any person in possession of the property involved, and to any person known to the judgment creditor after reasonable inquiry to have an ownership claim to the property involved. The notice must state the person's right to a hearing to claim exemptions that are not self-executing, to contest the seizure of exempt or necessary property, or to seek to set aside the judgment, and the steps the person may take to assert these rights. If documents are served on the person in connection with the execution, this notice must be included with the documents, but otherwise it must be given by first-class mail.

(4) At the time a judgment creditor subpoenas an individual for an examination under section 6110, the judgment creditor shall also provide a notice that the debtor is responsible for paying the judgment, that the court will not require the judgment to be paid with exempt income, assets, or property, and that the individual has the right to a hearing to claim exemptions, to contest the seizure of exempt or necessary property, or to seek to set aside the judgment.

(5) The notices required by this section must list the most common federal and state exemptions, give examples of income, assets, and property that are commonly exempt, and list sources of additional related information, such as this state's law libraries or the court's website. The notice must also state that the judgment debtor may file a motion to set aside the judgment and must list the most common grounds for such a motion, including improper service or active duty military service at the time of the suit.

(6) If an item of property falls into a category that is fully exempt under this chapter or for which the exemption depends on its value, or if an exemption depends on the judgment debtor's designation of the property to which the exemption will apply but the exemption appears to the executing officer to be sufficient to exempt all of the judgment debtor's property, the executing officer shall report that fact to the court and the judgment creditor and shall not execute on the property. The property is presumed to be fully exempt unless the judgment creditor requests and obtains a hearing and establishes that the property does not fall into a fully exempt category or includes significant value in excess of the amount exempt, or that the exemption is not sufficient to exempt all of the judgment debtor's property. The judgment creditor must request the hearing not later than 7 days after the executing officer's report. Notice of the hearing must be mailed to the debtor and describe the steps the debtor may take to contest the judgment creditor's claim as to the value of the property. The debtor may contest the judgment creditor's claim by appearing in person or through a representative at the hearing, or by filing a written response stating the debtor's belief of the amount that the property is worth and certifying the existence and amount of any liens or security interests against the property. The court shall consider such a statement as evidence.

(7) If an exemption under this chapter depends on the judgment debtor's designation of the property to which the exemption will apply, and the exemption does not appear to the executing officer to be sufficient to exempt all of the judgment debtor's property, the executing officer shall provide the judgment debtor a form and written instructions for designating the property to which the exemption will apply. If the debtor does not file the designation with the court within 7 days after receiving the form, the executing officer shall designate the items that will be exempt. If the debtor files a designation, the clerk of the court shall notify the judgment creditor. The items designated by the judgment debtor are presumed to be exempt unless the judgment creditor requests a hearing not later than 7 days after the clerk's notice and establishes at the hearing that the value of the property exceeds the exemption. The hearing must be conducted as set forth in subsection (6).

(8) The state court administrative office, acting under the direction of the supreme court, shall develop and make publicly available notices to garnishees that describe the exemptions applicable to particular types of garnishment. The forms shall instruct the garnishee not to turn over money or other property that the garnishee can reasonably identify as exempt, but instead to report back that the money or property is exempt.

(9) If a judgment creditor obtains an execution against a person, the person is entitled to a prompt hearing to claim exemptions, to contest the seizure of exempt property, or to seek to set aside the judgment.

(10) If a judgment creditor obtains an execution against property of a person, the person is entitled to a prompt hearing to claim that property levied on, while not exempt, is of such value to the financial rehabilitation or future support of the debtor or the debtor's dependents that it should be declared exempt by the court. The court may also order a greater exemption if other exceptional circumstances such as illness, injury, unemployment, death of a family member, disability, or old age make a greater exemption equitable.

(11) Costs incurred in making, or proposing to make, a levy on property must be paid out of the proceeds of a sale of the property if a sale occurs. If the proceeds of a sale of the property are insufficient to cover the costs incurred in the levy, garnishment, or attachment, the judgment creditor shall pay the costs and may not recover them from the debtor or the garnishee, notwithstanding any agreement of the parties to the contrary.

(12) As used in this section, "consumer debt" means an obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services that are the subject of the transaction are primarily for personal, family, or household purposes, whether or not the obligation has been reduced to judgment.

Sec. 6023h. (1) If property is seized that is exempt from seizure under this chapter, the debtor and the debtor's dependents may recover all of the following in a civil action:

(a) Actual damages, including emotional distress damages.

(b) Statutory damages up to $2,000.00 per exempt item seized.

(2) It is a defense to liability under this section that the seizure was not intentional and resulted from a bona fide error of fact notwithstanding the maintenance of procedures reasonably adapted to avoid the error.

Sec. 6027. If the homestead of any debtor is appraised at a value of more than $3,500.00, the exemption available under this chapter and cannot be divided, the debtor shall does not for that reason lose the benefit of the exemption. ; but in such cases the The officer who levies the execution shall deliver a notice, attached to a copy of the appraisal, to the debtor or to some of his a member of the debtor's family of suitable age to understand the nature thereof, of the notice that unless the debtor pay pays the officer the surplus over and above the $3,500.00, exemption available under this chapter or the amount due on the execution within 60 days thereafter, after delivery of the notice, the premises will be sold.

Sec. 6059. (1) In case If the surplus, or the amount due on the execution or judgment, is not paid according to the provisions of section 6027, of this chapter, it shall be lawful for the officer to may advertise and sell the said premises, and pay to the debtor out of the proceeds of said the sale to pay such debtor the sum of $3,500.00, which shall be exempt from execution for 1 year thereafter, amount of the exemption available under this chapter, and apply the balance on said the execution.

(2) No A sale may be made in the case last mentioned, under this section unless a an amount greater sum than $3,500.00 the exemption available under this chapter is bid therefor, for the property, in which case the officer may return said the execution for want of property, unsatisfied or report the facts to the court in which said that entered the judgment was rendered, as the case may require.as required.

(3) An amount paid to the debtor under this section is exempt from execution for 1 year after the payment.

Sec. 6104. (1) After judgment for money has been rendered entered in an action in any a court of this state, the judge may, on motion in that the action or in a subsequent proceeding, do any of the following:

(a) (1) Compel a discovery of any property or things in action belonging to a judgment debtor, and of any property, money, or things in action due to him, or held in trust for him;the judgment debtor.

(b) (2) Prevent the transfer, payment, or delivery of any property, money, or things in action , or the payment or delivery thereof to the judgment debtor. ;

(c) (3) Order the satisfaction of the judgment out of property, money, or other things in action, liquidated or unliquidated, that are not exempt from execution. ;

(d) (4) Appoint a receiver of any property the judgment debtor has or may thereafter acquire. ; and

(e) (5) Make any order as within his that in the judge's discretion seems appropriate in regard to carrying carry out the full intent and purpose of these provisions this chapter to subject any nonexempt assets of any a judgment debtor to the satisfaction of any a judgment against the judgment debtor.

(2) The court may permit the proceedings under this chapter to be taken although execution may not issue and although other proceedings may not be taken for the enforcement of the judgment. However, the court may not permit proceedings under this chapter if the result would be to allow the enforcement of the judgment in a manner that is otherwise expressly prohibited under this act or that would result in the evasion of express prohibitions under this act.

(3) It is not necessary that execution be returned unsatisfied before proceedings under this chapter are commenced.