Civil procedure: garnishment; certain benefits and tax credits; exempt from garnishment, and provide state limit on wages that are subject to garnishment. Amends sec. 4031 of 1961 PA 236 (MCL 600.4031) & adds secs. 4001a, 4032 & 4033.
Key claim: Michigan HB6205 would exempt certain benefits and tax credits from garnishment and establish a state limit on the portion of wages subject to garnishment by amending and adding sections to the Revised Judicature Act.
Abstract
(HB6205 · 103rd Legislature) Civil procedure: garnishment; certain benefits and tax credits; exempt from garnishment, and provide state limit on wages that are subject to garnishment. Amends sec. 4031 of 1961 PA 236 (MCL 600.4031) & adds secs. 4001a, 4032 & 4033. Latest action (2026-07-14): Bill Electronically Reproduced 07/03/2026
Why this matters
Wage garnishment directly reduces take-home pay for Michigan workers with debt judgments, and a state-specific cap could be more protective than the federal floor under the Consumer Credit Protection Act. Exempting public benefits and tax credits (such as EITC refunds) from garnishment would preserve safety-net income for low-wage households, while employers acting as garnishees would need to adjust withholding practices.