September 19, 2013, Introduced by Senator NOFS and referred to the Committee on Families, Seniors and Human Services.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 6023 (MCL 600.6023), as amended by 2012 PA 553.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6023. (1) The following property of a judgment debtor and
the judgment debtor's dependents is exempt from levy and sale under
an execution:
(a) All family pictures, all arms and accouterments required
by law to be kept by any person, all wearing apparel of every
person and his or her family, and provisions and fuel for
comfortable subsistence of each householder and his or her family
for 6 months.
(b) All household goods, furniture, utensils, books, and
appliances, not exceeding in value $1,000.00.
(c) A seat, pew, or slip occupied by the judgment debtor or
the judgment debtor's family in a house or place of public worship,
and all cemeteries, tombs, and rights of burial while in use as
repositories of the dead of the judgment debtor's family or kept
for burial of the judgment debtor.
(d) To each householder, 10 sheep, 2 cows, 5 swine, 100 hens,
5 roosters, and a sufficient quantity of hay and grain, growing or
otherwise, for properly keeping the animals and poultry for 6
months.
(e) The tools, implements, materials, stock, apparatus, team,
vehicle, motor vehicle, horses, harness, or other things to enable
a person to carry on the profession, trade, occupation, or business
in which the person is principally engaged, not exceeding in value
$1,000.00.
(f) Any money or other benefits paid, provided, or allowed to
be paid, provided, or allowed, by any stock or mutual life or
health or casualty insurance company, on account of the disability
due to injury or sickness of the insured person, whether the debt
or liability of such insured person or beneficiary was incurred
before or after the accrual of benefits under the insurance policy
or contract, except that the exemption under this subdivision does
not apply to actions to recover for necessities contracted for
after the accrual of the benefits.
(g) A homestead of not more than 40 acres of land and the
dwelling house and appurtenances on that homestead that is not
included in a recorded plat, city, or village, or, at the option of
the owner, a quantity of land that consists of not more than 1 lot
that is within a recorded town plat, city, or village, and the
dwelling house and appurtenances on that land, owned and occupied
by any resident of this state, not exceeding in value $3,500.00.
This exemption applies to any house that is owned, occupied, and
claimed as a homestead by a person but that is on land not owned by
the person. However, this exemption does not apply to a mortgage on
the homestead that is lawfully obtained. A mortgage is not valid
for purposes of this subdivision without the signature of a married
judgment debtor's spouse unless either of the following occurs:
(i) The mortgage is given to secure the payment of the purchase
money or a portion of the purchase money.
(ii) The mortgage is recorded in the office of the register of
deeds of the county in which the property is located, for a period
of 25 years, and no notice of a claim of invalidity is filed in
that office during the 25 years following the recording of the
mortgage.
(h) An equity of redemption as described in section 6060.
(i) The homestead of a family, after the death of the owner of
the homestead, from the payment of his or her debts in all cases
during the minority of his or her children.
(j) An individual retirement account or individual retirement
annuity as defined in section 408 or 408a of the internal revenue
code of 1986, 26 USC 408 and 408a, and the payments or
distributions from the account or annuity. This exemption applies
to the operation of the federal bankruptcy code as permitted by
section 522(b)(2) of the bankruptcy code, 11 USC 522. This
exemption does not apply to any amounts contributed to the
individual retirement account or individual retirement annuity if
the contribution occurs within 120 days before the debtor files for
bankruptcy. This exemption does not apply to an individual
retirement account or individual retirement annuity to the extent
that any of the following occur:
(i) The individual retirement account or individual retirement
annuity is subject to an order of a court pursuant to a judgment of
divorce or separate maintenance.
(ii) The individual retirement account or individual retirement
annuity is subject to an order of a court concerning child support.
(iii) Contributions to the individual retirement account or
premiums on the individual retirement annuity, including the
earnings or benefits from those contributions or premiums, exceed,
in the tax year made or paid, the deductible amount allowed under
section 408 of the internal revenue code of 1986, 26 USC 408. This
limitation on contributions does not apply to a rollover of a
pension, profit-sharing, stock bonus, or other plan that is
qualified under section 401 of the internal revenue code of 1986,
26 USC 401, or an annuity contract under section 403(b) of the
internal revenue code of 1986, 26 USC 403.
(iv) The individual retirement account or individual retirement
annuity is subject to a levy under section 25c of the support and
parenting time enforcement act, 1982 PA 295, MCL 552.625c.
(k) The right or interest of a person in a pension, profit-
sharing, stock bonus, or other plan that is qualified under section
401 of the internal revenue code of 1986, 26 USC 401, or an annuity
contract under section 403(b) of the internal revenue code of 1986,
26 USC 403, if the plan or annuity is subject to the employee
retirement income security act of 1974, Public Law 93-406, 88 Stat.
829. This exemption applies to the operation of the federal
bankruptcy code, as permitted by section 522(b)(2) of the
bankruptcy code, 11 USC 522. This exemption does not apply to any
amount contributed to a pension, profit-sharing, stock bonus, or
other qualified plan or a 403(b) annuity if the contribution occurs
within 120 days before the debtor files for bankruptcy. This
exemption does not apply to the right or interest of a person in a
pension, profit-sharing, stock bonus, or other qualified plan or a
403(b) annuity to the extent that the right or interest in the plan
or annuity is subject to either of the following:
(i) An order of a court pursuant to a judgment of divorce or
separate maintenance.
(ii) An order of a court concerning child support.
(l) Any interest in the following:
(i) A trust, fund, or advance tuition payment contract
established under the Michigan education trust act, 1986 PA 316,
MCL 390.1421 to 390.1442.
(ii) An account established under the Michigan education
savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.
(iii) An account in a qualified tuition program or educational
savings trust under section 529 or 530 of the internal revenue code
of 1986, 26 USC 529 and 530.
(2) The exemptions provided in this section do not extend to
any lien on the exempt property that is excluded from exemption by
law.
(3) If the owner of a homestead dies, leaving a surviving
spouse but no children, the homestead is exempt, and the rents and
profits of the homestead shall accrue to the benefit of the
surviving spouse before his or her remarriage, unless the surviving
spouse is the owner of a homestead in his or her own right.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No. 523.
(b) Senate Bill No. 525.