April 1, 2004, Introduced by Reps. Lipsey, Bieda, Anderson, Kolb, Tobocman, Gleason, Adamini, Gillard, Whitmer, Gaffney, Howell and LaSata and referred to the Committee on Judiciary.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending sections 6023 and 6027 (MCL 600.6023 and 600.6027),
section 6023 as amended by 1998 PA 61.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 6023. (1) The
following property of the a debtor and
2 the debtor's dependents shall
be is exempt from levy and sale
3 under any an
execution:
4 (a) All family
pictures, all arms and accouterments required
5 by law to be kept by
any person, all wearing apparel of every
6 person or family, and
provisions of the following:
7 (i) Family pictures.
8 (ii) Arms and accoutrements required by law to be kept by a
9 person.
10 (iii) Wearing apparel, excluding furs.
1 (iv) Cemeteries, tombs, and rights of burial in use as
2 repositories for the dead of the judgment debtor's family or kept
3 for burial of the judgment debtor.
4 (v) Professionally prescribed health aids.
5 (b) Provisions and fuel for comfortable subsistence of each
6 householder and his or her family for 6 months.
7 (c) (b)
All The interest, not to exceed a value of $450.00
8 in each item and an aggregate value of $3,000.00, in household
9 goods, furniture,
utensils, books, and appliances, not
10 exceeding in value
$1,000.00 and jewelry.
11 (d) (c) A The
interest, not to exceed $500.00 in value, in
12 a seat, pew, or slip occupied by the judgment debtor or the
13 judgment debtor's family
in any a house or place of public
14 worship. , and
all cemeteries, tombs, and rights of burial while
15 in use as repositories
of the dead of the judgment debtor's
16 family or kept for
burial of the judgment debtor.
17 (d) To each
householder, 10 sheep, 2 cows, 5 swine, 100 hens,
18 5 roosters, and a
sufficient quantity of hay and grain, growing
19 or otherwise, for
properly keeping the animals and poultry for 6
20 months.
21 (e) The interest, not to exceed $2,000.00 in value, in crops,
22 farm animals, and feed for the farm animals.
23 (f) The interest, not to exceed $500.00 in value, in
24 household pets.
25 (g) The interest, not to exceed $2,775.00 in value, in 1
26 motor vehicle.
27 (h) The interest, not to exceed $500.00 in value, in 1
1 computer and its accessories.
2 (i) (e) The
interest, not to exceed $2,000.00 in value, in
3 the tools, implements,
materials, stock, apparatus, team,
4 vehicle, motor
vehicle, horses, harness, or other
things to
5 enable a person to carry on the profession, trade, occupation, or
6 business in which the
person is principally engaged. , not
7 exceeding in value
$1,000.00.
8 (j) (f)
Any money Money or other benefits paid, provided,
9 or allowed to be paid,
provided, or allowed, by any a stock or
10 mutual life, or
health, or casualty insurance company , on
11 account because of the disability due to injury or
sickness of
12 any an insured person, whether the debt or liability
of such
13 the insured person or beneficiary was incurred before or after
14 the accrual of benefits under the insurance policy or contract,
15 except that the this
exemption does not apply to actions to
16 recover for necessities contracted for after the accrual of the
17 benefits.
18 (k) (g) The
interest, not exceeding $1,000.00 in par value,
19 in shares held by any
a member, being who is a householder,
20 of any an
association incorporated under the provisions of
21 the savings and loan act of 1980, 1980 PA 307, MCL 491.102 to
22 491.1202, to the
amount of $1,000.00 in such shares, at par
23 value, except that this exemption does not apply to any a
24 person who has a homestead exempted under the general laws of
25 this state.
26 (h) A homestead
of not exceeding 40 acres of land and the
27 dwelling house and
appurtenances on that homestead, and not
1 included in any recorded
plat, city, or village, or, instead, and
2 at the option of the
owner, a quantity of land not exceeding in
3 amount 1 lot, being
within a recorded town plat, city, or
4 village, and the
dwelling house and appurtenances on that land,
5 owned and occupied by
any resident of this state, not exceeding
6 in value $3,500.00.
This exemption extends to any person owning
7 and occupying any
house on land not his or her own and which the
8 person claims as a homestead.
However, this exemption does not
9 apply to any mortgage
on the homestead, lawfully obtained, except
10 that the mortgage is
not valid without the signature of a married
11 judgment debtor's
spouse unless either of the following occurs:
12 (i) The mortgage is given to secure the payment of the
13 purchase money or a
portion of the purchase money.
14 (ii) The mortgage is recorded in the office of the
register
15 of deeds of the county
in which the property is located, for a
16 period of 25 years,
and no notice of a claim of invalidity is
17 filed in that office
during the 25 years following the recording
18 of the mortgage.
19 (i) An equity of
redemption as described in section 6060.
20 (j) The homestead
of a family, after the death of the owner
21 of the homestead, from
the payment of his or her debts in all
22 cases during the
minority of his or her children.
23 (l) (k) An
All individual retirement account accounts,
24 including Roth IRAs, or
individual retirement annuity annuities
25 as defined in section 408 or 408a of the internal revenue code,
26 of 1986 26 USC 408 and 408a, and the payments or
distributions
27 from such an account
or annuity those accounts or annuities.
1 This exemption applies to the operation of the federal bankruptcy
2 code as permitted by
section 522(b)(2) of title 11 of the United
3 States Code, 11 U.S.C.
522 the bankruptcy code, 11 USC
522.
4 This exemption does not
apply to any amounts the amount
5 contributed to an individual retirement account or individual
6 retirement annuity if
the contribution occurs within 120 days
7 before the debtor files for bankruptcy. This exemption does not
8 apply to an
individual retirement account or individual
9 retirement annuity to
the extent that any of the following occur
10 either of the following:
11 (i) The portion of an individual retirement account or
12 individual retirement
annuity that is subject to an order of a
13 court pursuant to a
judgment of divorce or separate maintenance
14 for child support.
15 (ii) The individual retirement account or individual
16 retirement annuity is
subject to an order of a court concerning
17 child support.
18 (ii) (iii) Contributions The portion of an individual
19 retirement account or individual retirement annuity that is
20 attributable to contributions to the individual retirement
21 account or premiums on the individual retirement annuity,
22 including the earnings or benefits from those contributions or
23 premiums, exceed that,
in the tax year made or paid, exceeded
24 the deductible amount allowed under section 408 of the internal
25 revenue code, of
1986 26 USC 408. This limitation on
26 contributions does not apply to a rollover of a pension,
27 profit-sharing, stock bonus plan, or other plan that is qualified
1 under section 401 of the
internal revenue code, of 1986 26 USC
2 401, or an annuity contract under section 403(b) of the internal
3 revenue code, of
1986 26 USC 403.
4 (m) (l) The right
or interest of a person in a pension,
5 profit-sharing, stock bonus, or other plan that is qualified
6 under section 401 of the
internal revenue code, of 1986 26 USC
7 401, or an annuity contract under section 403(b) of the internal
8 revenue code, of
1986, which 26 USC 403, if the plan or annuity
9 is subject to the employee retirement income security act of
10 1974, Public Law 93-406, 88 Stat. 829. This exemption applies to
11 the operation of the federal bankruptcy code, as permitted by
12 section 522(b)(2) of title
11 of the United States Code, 11
13 U.S.C. 522 the bankruptcy code, 11 USC 522. This
exemption does
14 not apply to any amount contributed to a pension, profit-sharing,
15 stock bonus, or other qualified plan or a 403(b) annuity if the
16 contribution occurs within 120 days before the debtor files for
17 bankruptcy. This exemption does not apply to the right or
18 interest of a person in a pension, profit-sharing, stock bonus,
19 or other qualified plan or a 403(b) annuity to the extent that
20 the right or interest in
the plan or annuity is subject to
21 any either of the following:
22 (i) An order of a court pursuant to a judgment of divorce or
23 separate maintenance.
24 (ii) An order of a court concerning child support.
25 (2) The
exemptions provided in this section shall not extend
26 to any lien thereon
excluded from exemption by law. The
interest
27 of a debtor and the debtor's dependents, not to exceed $30,000.00
1 in value or, if the debtor or a dependent of the debtor is 65
2 years of age or older or disabled, not to exceed $45,000.00 in
3 value, in a homestead is exempt from levy and sale under an
4 execution.
5 (3) Property held jointly by a husband and wife as a tenancy
6 by the entirety is exempt from execution under a judgment entered
7 against only 1 spouse.
8 (4) (3) If
the owner of a homestead dies, leaving a
9 surviving spouse but no
children, the homestead shall be is
10 exempt from levy and sale under an execution, and the rents and
11 profits of the homestead shall accrue to the benefit of the
12 surviving spouse before his or her remarriage, unless the
13 surviving spouse is the owner of a homestead in his or her own
14 right.
15 (5) An exemption under this section does not apply to a
16 mortgage, lien, or security interest in the exempt property that
17 is consensually given or lawfully obtained unless the lien is
18 obtained by judgment, attachment, levy, or similar legal process
19 in connection with a court action or proceeding against the
20 debtor.
21 (6) If property that is exempt under this section is sold,
22 damaged, destroyed, or acquired for public use, the right to
23 receive proceeds or, if the owner receives proceeds and holds
24 them in a manner that makes them identifiable as proceeds, the
25 proceeds received are exempt from levy and sale under an
26 execution in the same manner and amount as the exempt property.
27 An exemption under this subsection may be claimed up to 1 year
1 after the receipt of the proceeds by the owner.
2 (7) On March 1, 2005 and at the end of each 3-year period
3 after 2005, the state treasurer shall adjust each dollar amount
4 in this section or, for each adjustment after March 1, 2005, each
5 adjusted amount, by an amount determined by the state treasurer
6 to reflect the cumulative change in the consumer price index for
7 the 3-year period ending on the December 31 preceding the
8 adjustment date and rounded to the nearest $25.00. The state
9 treasurer shall publish the adjusted amounts. The adjusted
10 amounts apply to cases filed on or after April 1 following the
11 adjustment date.
12 (8) As used in this section:
13 (a) "Consumer price index" means the consumer price index for
14 all urban consumers in the area of Detroit-Ann Arbor-Flint,
15 Michigan, published by the United States department of labor or,
16 if the United States department of labor ceases publishing that
17 index, the most similar index available.
18 (b) "Disabled" means unable to engage in substantial gainful
19 activity, as defined by 42 USC 1382c(a)(3)(E), as a result of a
20 physical or mental impairment that would meet the disability
21 requirements for supplemental security income under 42 USC
22 1382(a)(3)(A) and (C).
23 (c) "Proceeds" means money payable or paid as a result of 1
24 or more of the following:
25 (i) Sale of the property.
26 (ii) Insurance or other indemnification for damage or
27 destruction of the property.
1 (iii) Compensation for the acquisition for public use of the
2 property.
3 (d) "Homestead" means 1 of the following owned or being
4 purchased under an executory contract by the debtor that the
5 debtor or a dependent of the debtor occupies as his or her
6 principal residence:
7 (i) If the land is located outside of a recorded plat, city,
8 or village, a residential dwelling and appurtenances and the land
9 on which they are situated, not exceeding 40 acres.
10 (ii) If the land is located within a recorded plat, city, or
11 village, a residential dwelling and appurtenances and the land on
12 which they are situated, not exceeding 1 lot or parcel.
13 (iii) A residential dwelling situated on land not owned by
14 the debtor.
15 (iv) A condominium unit.
16 (v) A unit in a cooperative.
17 (vi) A motor home.
18 (vii) A boat or other watercraft.
19 (e) "Residential dwelling" includes, but is not limited to, a
20 house or a manufactured or mobile home.
21 Sec. 6027. If the
homestead of any a debtor is appraised
22 at a value of more
than $3,500.00, that exceeds the available
23 exemption under section 6023 and cannot be divided, the debtor
24 shall not for that
reason lose the benefit of may
still claim
25 the exemption, ;
but in such cases the levying officer shall
26 deliver a notice, attached to a copy of the appraisal, to the
27 debtor or to some of
his a member of the debtor's family of
1 suitable age to
understand the nature thereof notice, that
2 unless the debtor pay
pays the officer the surplus over and
3 above the $3,500.00, amount that exceeds the exemption or the
4 amount due on the
execution within 60 days thereafter of the
5 notice, the premises will be sold.