{"id":7317,"date":"2024-10-23T17:28:26","date_gmt":"2024-10-23T21:28:26","guid":{"rendered":"https:\/\/senatedems.com\/irwin\/?p=7317"},"modified":"2024-10-23T17:28:26","modified_gmt":"2024-10-23T21:28:26","slug":"debt-2","status":"publish","type":"post","link":"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/","title":{"rendered":"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\u00a0"},"content":{"rendered":"

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LANSING, Mich. (Oct. 23, 2024) \u2014 Today, the Michigan Senate Committee on Finance, Insurance, and Consumer Protection voted to pass Senate Bills 408<\/a><\/u><\/span> and 409<\/a><\/u><\/span>, a comprehensive bill package that modernizes the state\u2019s consumer debt garnishment law and bankruptcy exemptions to better protect families who are struggling to pay their debts. Introduced by Sens. Jeff Irwin <\/b>(D-Ann Arbor) and Mary Cavanagh <\/b>(D-Redford Twp.) on June 27, 2023<\/a><\/u><\/span>, these bills are the culmination of years of extensive data-driven work<\/a><\/u><\/span>, deliberate collaboration, interactive workgroup meetings, and stakeholder testimonies<\/a><\/u><\/span>.<\/p>\n

\u201cSenate Bill 408 provides a much-needed update to the laws that protect people from being left destitute while they pay their debts,\u201d said Sen. Irwin<\/b>, Vice Chair of the Senate Committee on Finance, Insurance, and Consumer Protection. \u201cThe version of the bill that passed out of committee today is the product of over a year\u2019s extensive consultation with stakeholders on all sides of this issue, and it will provide practical and fair protections to ensure that ordinary Michiganians don\u2019t lose modest homes, transportation, or taxpayer-funded benefits to debt collectors as they are getting back on their feet.\u201d<\/p>\n

\u201cAs Chair of the Senate Finance, Insurance, and Consumer Protection Committee and sponsor of Senate Bill 409, I\u2019m proud of our tireless efforts to craft this important legislation with intention and get it passed to bring greater equity to Michigan\u2019s bankruptcy and debt garnishment systems,\u201d said Sen. Cavanagh<\/b>. \u201cBankruptcy and garnishment are important functions of our economic system but do not serve their purpose if people are left without a home, transportation, or food. This bill package ensures that public benefits go to those in need instead of private debt collectors. It protects working families and seniors from ending up on the street simply because they\u2019ve filed for bankruptcy \u2014 everyone, regardless of their financial situation, deserves to have their basic needs met. This is good, equitable public policy that will help vulnerable Michiganders pay off debts without losing their homes, vehicles, and ability to work.\u201d<\/p>\n

In 2022, the Michigan Justice for All Commission released a report<\/a><\/u><\/span> demonstrating that debt collection lawsuits dominate the state\u2019s civil courts<\/a><\/u><\/span> \u2014 and third-party debt collectors constituted 60% of all Michigan debt collection cases in 2019 with communities of color and low-income Michiganders being most impacted, often without legal representation.<\/p>\n

\u201cDebt collection cases have dominated civil court dockets nationwide, including in Michigan,\u201d said Erika Rickard<\/b>, Director of The Pew Charitable Trusts\u2019 Courts and Communities Project. \u201cBut Michigan\u2019s outdated garnishment laws make the state an outlier. These laws can drain a person\u2019s bank account or lead to seizure of their earned income tax credit. Senate Bill 408 can change that and put Michigan in line with what other states have successfully done. The committee\u2019s actions today\u202fcreate common-sense changes that can allow people to pay off their debts without debilitating disruptions to their daily lives.\u201d<\/p>\n

Senate Bill 408 would ensure Michiganders are given clearer notice if sued over a debt and update antiquated garnishment exemption categories and amounts<\/a><\/u><\/span>. Senate Bill 409 would modernize bankruptcy exemptions<\/a><\/u><\/span> and offer protections for a minimum bank account amount or funds derived from the recently expanded Earned Income Tax Credit<\/a><\/u><\/span> or other public benefits.<\/p>\n

The committee passage of these bills underscores Senate Democrats\u2019 dedication to utilizing constituent and partner input to craft and pass intentional policy that expands equitable opportunity, protects taxpayer dollars, and supports prosperous Michigan communities. The legislation now moves to the full Senate for consideration.\u00a0<\/p><\/div>\n

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LANSING, Mich. (Oct. 23, 2024) \u2014 Today, the Michigan Senate Committee on Finance, Insurance, and Consumer Protection voted to pass Senate Bills 408 and 409, a comprehensive bill package that […]<\/p>\n","protected":false},"author":1,"featured_media":7318,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-7317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"yoast_head":"\nSenate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\u00a0 - Senator Jeff Irwin<\/title>\n<meta name=\"description\" content=\"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\u00a0\" \/>\n<meta property=\"og:description\" content=\"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Senator Jeff Irwin\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-23T21:28:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dev.senatedems.com\/irwin\/wp-content\/uploads\/sites\/19\/2024\/10\/debt-relief.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2121\" \/>\n\t<meta property=\"og:image:height\" content=\"1414\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/#\/schema\/person\/d70eb43c43b9d6128dac1bd664ee6466\"},\"headline\":\"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\u00a0\",\"datePublished\":\"2024-10-23T21:28:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\"},\"wordCount\":651,\"image\":{\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dev.senatedems.com\/irwin\/wp-content\/uploads\/sites\/19\/2024\/10\/debt-relief.jpg\",\"articleSection\":[\"Press Release\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\",\"url\":\"https:\/\/dev.senatedems.com\/irwin\/2024\/10\/23\/debt-2\/\",\"name\":\"Senate Finance, Insurance, and Consumer Protection Committee Passes Bills to Protect Michigan Families Struggling with Debt\u00a0 - 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