June 30, 2005, Introduced by Reps. Lipsey, Bieda, Kehrl, Plakas, Leland, Kathleen Law, Tobocman, Whitmer, Gaffney and Stewart 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:
Sec.
6023. (1) The following property of the a debtor and
the
debtor's dependents shall be is exempt from levy and sale
under
any 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
or family, and provisions of the following:
(i) Family pictures.
(ii) Arms and accoutrements required by law to be kept by a
person.
(iii) Wearing apparel, excluding furs.
(iv) Cemeteries, tombs, and rights of burial in use as
repositories for the dead of the judgment debtor's family or kept
for burial of the judgment debtor.
(v) Professionally prescribed health aids.
(b) Provisions and fuel for comfortable subsistence of each
householder and his or her family for 6 months.
(c) (b)
All The interest, not to exceed a value of $450.00
in each item and an aggregate value of $3,000.00, in household
goods,
furniture, utensils, books, and appliances, not exceeding
in
value $1,000.00 and jewelry.
(d) (c)
A The interest, not to exceed $500.00 in value, in
a seat, pew, or slip occupied by the judgment debtor or the
judgment
debtor's family in any 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 interest, not to exceed $2,000.00 in value, in crops,
farm animals, and feed for the farm animals.
(f) The interest, not to exceed $500.00 in value, in household
pets.
(g) The interest, not to exceed $2,775.00 in value, in 1 motor
vehicle.
(h) The interest, not to exceed $500.00 in value, in 1
computer and its accessories.
(i) (e)
The interest, not to exceed $2,000.00 in value, in
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.
(j) (f)
Any money Money
or other benefits paid, provided,
or
allowed to be paid, provided, or allowed, by any a
stock or
mutual
life, or health, or casualty insurance
company , on
account
because of the disability
due to injury or sickness of
any
an insured person, whether
the debt or liability of such the
insured person or beneficiary was incurred before or after the
accrual of benefits under the insurance policy or contract, except
that
the this exemption does not apply to actions to recover for
necessities contracted for after the accrual of the benefits.
(k) (g)
The interest, not exceeding $1,000.00 in par value,
in shares held by any a
member, being who is a householder, of
any
an association incorporated
under the provisions of the
savings
and loan act of 1980, 1980 PA 307, MCL 491.102 to 491.1202,
to
the amount of $1,000.00 in such shares, at par value, except
that
this exemption does not apply to any a person who has a
homestead exempted under the general laws of this state.
(h)
A homestead of not exceeding 40 acres of land and the
dwelling
house and appurtenances on that homestead, and not
included
in any recorded plat, city, or village, or, instead, and
at
the option of the owner, a quantity of land not exceeding in
amount
1 lot, being 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 extends to any person owning and
occupying
any house on land not his or her own and which the person
claims
as a homestead. However, this exemption does not apply to
any
mortgage on the homestead, lawfully obtained, except that the
mortgage
is not valid 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.
(i)
An equity of redemption as described in section 6060.
(j)
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.
(l) (k)
An All individual retirement account
accounts,
including
Roth IRAs, or individual retirement annuity
annuities
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
such
an account or annuity those accounts or annuities. This
exemption applies to the operation of the federal bankruptcy code
as
permitted by section 522(b)(2) of title 11 of the United States
Code,
11 U.S.C. 522 the bankruptcy code, 11 USC 522. This
exemption
does not apply to any amounts the
amount contributed to
an
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 any of the following:
(i) The portion of an individual retirement account or
individual retirement annuity that is subject to an order of a
court pursuant to a judgment of divorce or separate maintenance.
(ii) The portion of an individual retirement account or
individual retirement annuity that is subject to an order of a
court concerning child support.
(iii) Contributions The portion of an individual retirement
account or individual retirement annuity that is attributable to
contributions to the individual retirement account or premiums on
the individual retirement annuity, including the earnings or
benefits
from those contributions or premiums, exceed that,
in
the tax year made or paid, exceeded 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 plan, 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.
(m) (l) 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, which 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 title 11 of the United States Code, 11 U.S.C. 522
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 any 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.
(2)
The exemptions provided in this section shall not extend
to
any lien thereon excluded from exemption by law. The
interest
of a debtor and the debtor's dependents, not to exceed $30,000.00
in value or, if the debtor or a dependent of the debtor is 65 years
of age or older or disabled, not to exceed $45,000.00 in value, in
a homestead is exempt from levy and sale under an execution.
(3) If the owner of a homestead dies, leaving a surviving
spouse
but no children, the homestead shall be is exempt from
levy and sale under an execution, 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.
(4) An exemption under this section does not apply to a
mortgage, lien, or security interest in the exempt property that is
consensually given or lawfully obtained unless the lien is obtained
by judgment, attachment, levy, or similar legal process in
connection with a court action or proceeding against the debtor.
(5) If property that is exempt under this section is sold,
damaged, destroyed, or acquired for public use, the right to
receive proceeds or, if the owner receives proceeds and holds them
in a manner that makes them identifiable as proceeds, the proceeds
received are exempt from levy and sale under an execution in the
same manner and amount as the exempt property. An exemption under
this subsection may be claimed up to 1 year after the receipt of
the proceeds by the owner.
(6) On the effective date of the amendatory act that added
this subsection, the state treasurer shall adjust each dollar
amount in this section so that the amount is equal to the
corresponding amount in section 5451. After that date, the state
treasurer shall adjust the dollar amounts in this section on March
1 of a calendar year if the amounts in section 5451 are adjusted on
that date. Each dollar amount in this section shall be adjusted so
that it continues to be equal to the corresponding amount in
section 5451.
(7) As used in this section:
(a) "Disabled" means unable to engage in substantial gainful
activity, as defined by 42 USC 1382c(a)(3)(E), as a result of a
physical or mental impairment and receiving supplemental security
income because the individual is disabled as described in 42 USC
1382c(a)(3)(A) and (C).
(b) "Homestead" means 1 of the following owned or being
purchased under an executory contract by the debtor that the debtor
or a dependent of the debtor occupies as his or her principal
residence:
(i) If the land is located outside of a recorded plat, city, or
village, a residential dwelling and appurtenances and the land on
which they are situated, not exceeding 40 acres.
(ii) If the land is located within a recorded plat, city, or
village, a residential dwelling and appurtenances and the land on
which they are situated, not exceeding 1 lot or parcel.
(iii) A residential dwelling situated on land not owned by the
debtor.
(iv) A condominium unit.
(v) A unit in a cooperative.
(vi) A motor home.
(vii) A boat or other watercraft.
(c) "Proceeds" means money payable or paid as a result of 1 or
more of the following:
(i) Sale of the property.
(ii) Insurance or other indemnification for damage or
destruction of the property.
(iii) Compensation for the acquisition for public use of the
property.
(d) "Residential dwelling" includes, but is not limited to, a
house or a manufactured or mobile home.
Sec.
6027. If the homestead of any a debtor is appraised at
a
value of more than $3,500.00, that
exceeds the available
exemption
under section 6023 and cannot be
divided, the debtor
shall
not for that reason lose the benefit of may still claim the
exemption, ;
but in such cases the
levying officer shall
deliver a notice, attached to a copy of the appraisal, to the
debtor
or to some of his a
member of the debtor's family of
suitable
age to understand the nature thereof notice, that unless
the
debtor pay pays the officer the surplus over and above the
$3,500.00,
amount that exceeds the exemption or the amount due on
the
execution within 60 days thereafter of the notice, the
premises will be sold.