This bill amends the Revised Judicature Act of 1961, specifically section 4012, to clarify the rules surrounding garnishments of periodic payments. It establishes that a garnishment remains in effect until the judgment is satisfied and outlines the conditions under which a garnishee is not liable for garnishments with higher priority or those received earlier. The bill also specifies that a garnishment is not valid unless served according to Michigan court rules and mandates that plaintiffs provide regular statements regarding the judgment balance to both the garnishee and the defendant.

Additionally, the bill introduces new requirements for plaintiffs when seeking a default against a garnishee, including the necessity of serving a notice of failure and allowing the garnishee time to rectify any issues. It also stipulates that a garnishee can recover amounts due to a default judgment from future payments to the defendant. Notably, the bill includes a new provision exempting certain transactions, such as those under an earned wage access services license, from the garnishment rules. The enactment of this bill is contingent upon the passage of House Bill No. 5558.

Statutes affected:
House Introduced Bill: 600.4012