February 1, 2005, Introduced by Rep. Mortimer 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 debtor and the
debtor's
dependents shall be is exempt from levy and sale under
any 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 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 any 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 , or 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 any 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 However, this
exemption does not apply to actions to recover for necessities
contracted for after the accrual of the benefits.
(g) The shares held by any member, being a householder, of any
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 the shares, at par value, except that
this exemption does not apply to any 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.
(h) Subject to subsection (4), a homestead, limited to the
following:
(i) If the debtor or the debtor's spouse is 65 years of age or
older, 100% of the homestead's value that is $150,000.00 or less
and 75% of the homestead's value that exceeds $150,000.00.
(ii) If subparagraph (i) does not apply, the homestead's value
that does not exceed $3,500.00.
(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.
(k) An individual retirement account or individual retirement
annuity as defined in section 408 or described in section 408a of
the
internal revenue code, of 1986 26 USC 408 and 408a, and
the
payments or distributions from such an account or annuity. 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
1 or more of the following occur apply:
(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 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.
(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 1 or both
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 do not
extend
to any lien thereon on
the property excluded from
exemption by law.
(3)
If the owner of a homestead dies , leaving a surviving
spouse
but no children, the homestead shall be 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.
(4) The homestead exemption under subsection (1)(h) does not
apply to a lawfully obtained mortgage on the homestead. However, if
the debtor is married and the debtor's spouse did not sign the
mortgage, the exemption applies to the mortgage unless 1 or both of
the following apply:
(a) The mortgage was given to secure the payment of all or a
portion of the purchase money for the homestead.
(b) The mortgage has been recorded in the office of the
register of deeds of the county in which the homestead is located
for 25 years or more and notice of a claim of invalidity has not
been filed in that office during the 25 years following the
recording of the mortgage.
(5) As used in this section, "homestead" means the following:
(a) Land, limited to the following size, and the house and
appurtenances on it owned and occupied by a resident of this state:
(i) If the homestead is not located in a recorded plat, city,
or village, 40 acres or less.
(ii) If the homestead is located in a recorded plat, city, or
village, 1 lot or a fraction of a lot.
(b) A house owned and occupied by a resident of this state
that is on land not owned by the resident.
Sec. 6027. If the homestead of any 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 the 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 after the
delivery of the notice, the premises will be sold.