GARNISHMENT & EXECUTION; MODIFY S.B. 408 (S-2):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
Senate Bill 408 (Substitute S-2 as reported)
Sponsor: Senator Jeff Irwin
Committee: Finance, Insurance, and Consumer Protection
CONTENT
Primarily, the bill would modify the types and value of wages, money, and property exempt
from garnishment and execution, which are forms of debt collection. For garnishment, the bill
would establish a process by which priority would be determined in cases of multiple
garnishments and expand provisions prohibiting a garnishee from disciplining a debtor for
garnishment. For execution, the bill would require a creditor to provide notice to a debtor
upon obtaining a writ of execution and throughout the execution process. These notices would
have to inform the debtor of rights, including the ability to request a hearing to dispute an
execution or to classify some property as exempt from execution.
MCL 600.2807 et al.
BRIEF RATIONALE
Garnishment is a court process through which a creditor may compel a garnishee, a third-
party such as a debtor's employer, to distribute money to the creditor instead of the debtor.
Similarly, execution is a court-order process by which a creditor may request to seize and sell
a debtor's non-exempt property. According to testimony, the language protecting residents
from debt collection needs updating for the modern era. Some argue that protections should
include a resident’s first home, first automobile, the earned income tax credit, and a small
amount of money in bank accounts. It has been suggested that these protections would allow
an indebted individual to earn a living and live in dignity even if facing garnishment.
Legislative Analyst: Nathan Leaman
FISCAL IMPACT
The bill would likely increase varied administrative expenses for the State Court
Administrative Office and local courts to a small degree. New exemptions, new exemption
amounts, and new notice requirements for court proceedings regarding debt would possibly
require local courts to revise current garnishment or bankruptcy proceedings. Additionally,
the Office would have to produce and make available additional notice forms for use statewide.
The bill would not directly affect State or local government. Tax garnishments are applied to
refunds, after State and local taxes have been satisfied. Indirectly, the bill would likely
decrease the number of garnishment filings by creditors and debt buyers due to the increased
number of exemptions created and existing exemption amounts increased under the bill. Pre-
pandemic, there were over 200,000 annual debt cases in Michigan with nearly 80% of those
cases resulting in a garnishment for a median amount of $1,600. Annual debt cases and
garnishments were cut nearly in half during the pandemic. According to the Michigan Justice
for All Commission (Commission), nearly 75% of all debt collection lawsuits are filed by ten
high-volume plaintiffs.1
1 Commission, Advancing Justice for All in Debt Collection Lawsuits, p. 11, November, 2022.
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The bill would address some of the recommendations in the Commission’s report, such as
additional notice requirements. The bill also would vastly increase existing exemptions from
garnishment and bankruptcy, making certain assets more difficult to seize through
garnishment. These increased thresholds are not expected to have a direct impact on the
State or local courts, but could have an indirect impact, based on a reduced number of debt-
related filings and associated adjustments to operating expenses or court fees. Outside of the
potential for a slightly reduced amount fee revenue for Treasury to handle garnishment
requests, the bill is not expected to affect State or local tax revenue, which has precedence
over consumer debt garnishments.
Date Completed: 10-29-24 Fiscal Analyst: Michael Siracuse
Cory Savino, PhD
SAS\Floors2324\sb408
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 2 of 2 Bill Analysis @ www.senate.michigan.gov/sfa sb408/2324


Statutes affected:
Substitute (S-2): 600.2807
Senate Introduced Bill: 600.2807