Advocacy News – Feb. 15, 2024
What’s Happening? Legislation in the Michigan Senate could limit bank garnishments and complicate legal debt collection, negatively affecting a business’ finances and the ability for Michiganders to take out credit.
- Senate Bill 408, sponsored by Senator Jeff Irwin (D-Ann Arbor) is currently awaiting a hearing in the Michigan Senate committee on Finance, Insurance, and Consumer Protection.
- The Michigan Chamber of Commerce is opposed to this legislation as introduced and has joined a coalition working to ensure this legislation does not pass.
What does this mean? The bill would impact businesses and Michiganders across the state by implementing the following changes:
- Complicate the process of collecting legal debt by limiting the definition of “wage garnishments,” which does not include already provided exemptions.
- Limit the rights and the authority of a financial institution in the calculation of bank garnishment.
- Eliminates all tax garnishments.
- Significantly increases exemptions of real property and personal property within the process of determining garnishments.
Go deeper: View the coalition letter and it’s members for more on this bill.
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.