The bill proposes amendments to the General Laws concerning the handling of medical debt in relation to deceptive trade practices, execution of judgments, and attachment procedures. It redefines "Credit report" to exclude information pertaining to medical debt, which is defined as an obligation owed to healthcare facilities or professionals for services, products, or devices. The bill includes insertions that clarify the definition of medical debt and deletions aimed at simplifying the language around property attachment. Notably, the bill prohibits the filing of executions against a defendant's principal residence and the attachment of such a residence for judgments based on medical debt, thereby protecting individuals from losing their homes due to medical expenses.

Additionally, the bill outlines new rules for wage garnishment, stating that garnishments for salary or wages are only effective for amounts not exempt by law, and explicitly excludes garnishments for medical debt. Employers are tasked with making an affidavit regarding the defendant's salary or wages and are liable only for the amount exceeding the exemption, with a fee entitlement of five dollars for each writ of garnishment served. The bill also prioritizes child support garnishments over others and allows the state court system to develop a wage assignment procedure for collecting court-related financial obligations. Importantly, it prohibits credit bureau reporting of medical debt and the filing of an execution and attachment against a consumer's principal residence for medical debt judgments. The act is scheduled to take effect on January 1, 2025.

Statutes affected:
2711  SUB A: 6-13.1-20
2711: 6-13.1-20