The Michigan Supreme Court heard oral arguments May 7, 2026, regarding nine bills passed during the 2024 legislative session that were never transmitted to Governor Gretchen Whitmer for signature. Two of these bills, HB 4900 and 4901, directly affect the collections industry, reducing the amounts which may be garnished and greatly increasing Michigan Exemptions from execution. The dispute centers on whether the Michigan House of Representatives, now under Republican leadership, is constitutionally required to complete the enrollment process and forward the legislation after the close of the prior session.
The Michigan Court of Appeals previously ruled that the House must transmit the bills to the governor but did not establish a deadline. The pending legislation spans several policy areas, including public employee healthcare, pension matters, museum funding, and significant proposed changes impacting creditors’ rights and debt collection procedures.
Of particular concern to the creditors’ rights industry are bills that would limit wage and property garnishment in debt collection and bankruptcy-related proceedings. Stuart Best, President of the The Michigan Creditors Bar Association (MCBA) and Shareholder in Weltman’s Detroit, MI office, has argued that the measures could create uncertainty surrounding previously issued garnishments and impair creditors’ ability to collect outstanding debts. Concerns have also been raised regarding the potential retroactive impact of the legislation and its effect on unsecured creditors, including credit card issuers and personal loan providers. The MCBA has spent the past two years challenging the bills and drafting alternative legislation to better meet the industry and the public’s needs.
The Court’s decision could have significant procedural and substantive implications for Michigan legislative practice and the future of debt collection enforcement within the state.
Our team is constantly monitoring this update and changes within the industry. If you have any questions or would like to learn more about Weltman’s solutions, feel free to connect with Shareholder Stuart Best at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
The Michigan Court of Appeals previously ruled that the House must transmit the bills to the governor but did not establish a deadline. The pending legislation spans several policy areas, including public employee healthcare, pension matters, museum funding, and significant proposed changes impacting creditors’ rights and debt collection procedures.
Of particular concern to the creditors’ rights industry are bills that would limit wage and property garnishment in debt collection and bankruptcy-related proceedings. Stuart Best, President of the The Michigan Creditors Bar Association (MCBA) and Shareholder in Weltman’s Detroit, MI office, has argued that the measures could create uncertainty surrounding previously issued garnishments and impair creditors’ ability to collect outstanding debts. Concerns have also been raised regarding the potential retroactive impact of the legislation and its effect on unsecured creditors, including credit card issuers and personal loan providers. The MCBA has spent the past two years challenging the bills and drafting alternative legislation to better meet the industry and the public’s needs.
The Court’s decision could have significant procedural and substantive implications for Michigan legislative practice and the future of debt collection enforcement within the state.
Our team is constantly monitoring this update and changes within the industry. If you have any questions or would like to learn more about Weltman’s solutions, feel free to connect with Shareholder Stuart Best at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
