Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: HB 5254’25
Key claim: Michigan HB5255 would create a new act prohibiting the foreclosure or garnishment of wages to collect medical debt.
Abstract
(HB5255 · 103rd Legislature) Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: HB 5254’25 Latest action (2026-06-25): Referred To Committee Of The Whole
Why this matters
For workers and homeowners with unpaid medical bills, HB5255 would remove two of the most severe collection remedies — wage garnishment and foreclosure — shielding paychecks and homes from medical creditors. For hospitals, collection agencies, and other medical creditors, it narrows the enforcement tools available to recover unpaid balances, potentially shifting collection practices and pricing. It fits alongside other Michigan proposals (interest-rate caps, garnishment limits) building a distinct medical-debt consumer protection regime.