MIchigan Passes House Bill 4900 Awaiting Gov Whitmer’s Signature

Michael Stillman

It’s a sad day in Michigan today. Senate Bill 408, which morphed into House Bill 4900, was passed a short while ago. This bill represents a misguided legislative effort that risks creating far-reaching negative consequences for the state’s financial and legal systems. These bills, passed by both the House and Senate, are awaiting Governor Gretchen Whitmer’s decision. Unless she exercises a pocket veto, the legislation could soon become law.

Proponents claim the bills modernize Michigan’s garnishment and bankruptcy exemption laws to protect families, but in reality, these changes threaten to disrupt long-standing legal and economic practices. The rushed and poorly considered adjustments will undermine creditors’ ability to collect valid debts, creating instability in Michigan’s financial ecosystem and penalizing businesses that rely on fair and predictable enforcement of contracts.

The bills fail to balance the needs of consumers with the realities faced by small businesses, creditors, and legal professionals. By imposing overly restrictive garnishment procedures and raising exemptions to unrealistic levels, the legislation essentially allows debtors to avoid their obligations, pushing the costs onto other consumers and businesses. This unintended shift undermines the principles of accountability and fairness that should underpin our legal and financial systems.

Further, the legislation lacks sufficient input from stakeholders directly impacted by these changes, such as creditors, legal professionals, and financial institutions. Without their insights, the laws risk being not only ineffective but also economically damaging, discouraging investment and lending in Michigan.

Governor Whitmer has the opportunity to prevent this flawed legislation from taking effect by exercising a pocket veto. Doing so would allow for a more thoughtful and collaborative approach to reforming Michigan’s garnishment and bankruptcy laws—one that truly balances the interests of all parties involved. Failure to act risks creating a wave of unintended consequences that will harm Michigan’s economic stability and set a dangerous precedent for future legislation.