SB-0895, As Passed Senate, December 13, 2012
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 895
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 6023 (MCL 600.6023), as amended by 1998 PA 61.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
6023. (1) The following property of the a judgment debtor
and
the judgment 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 and his or her 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 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 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, 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 the
insured person, whether the
debt or liability of such insured person or beneficiary was
incurred before or after the accrual of benefits under the
insurance policy or contract, except that the exemption under this
subdivision 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 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.
(g) (h)
A homestead of not exceeding more than 40 acres of
land
and the dwelling house and appurtenances on that homestead ,
and
that is not included in any a recorded
plat, city, or village,
or,
instead, and at the option of the owner, a quantity of land
that
consists of not exceeding in amount more than 1 lot , being
that is 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 applies
to any house that is owned, occupied, and claimed as a homestead by
a
person but that is on land not his
or her own and which the
person
claims as a homestead owned
by the person. However, this
exemption
does not apply to any a mortgage on the homestead , that
is
lawfully obtained. ,
except that the A mortgage is not valid for
purposes of this subdivision 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) (i)
An equity of redemption as described
in section 6060.
(i) (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.
(j) (k)
An individual retirement account or
individual
retirement annuity 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 the
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. the bankruptcy
code, 11 USC 522. This exemption
does
not apply to any amounts contributed to an the 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:
(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.
(k) (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,
26
USC 403, which 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. 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.
(l) Any interest in the following:
(i) A trust, fund, or advance tuition payment contract
established under the Michigan education trust act, 1986 PA 316,
MCL 390.1421 to 390.1442.
(ii) An account established under the Michigan education
savings program act, 2000 PA 161, MCL 390.1471 to 390.1486.
(iii) An account in a qualified tuition program or educational
savings trust under section 529 or 530 of the internal revenue code
of 1986, 26 USC 529 and 530.
(2)
The exemptions provided in this section shall do not
extend
to any lien thereon on the
exempt property that is 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.