Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: SB 0701’25
Key claim: Michigan SB0702 would create a new act prohibiting the foreclosure or garnishment of wages to collect medical debt.
Abstract
(SB0702 · 103rd Legislature) Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: SB 0701’25 Latest action (2026-06-17): Referred To Second Reading
Why this matters
SB0702 adds a Senate-side vehicle to Michigan’s expanding medical debt protection package, prohibiting two of the most severe creditor remedies — wage garnishment and home foreclosure — when the underlying debt is medical. Paired with SB0701’s interest rate cap and parallel House bills on credit reporting and hospital charity care, it signals a coordinated bicameral push to shield safety-net populations from cascading financial harm tied to health care costs. Passage of one chamber elevates the likelihood that some form of these protections reaches enactment.