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Bill

SB 702

Civil procedure: foreclosure; foreclosure or garnishment of wages for medical debt; prohibit. Creates new act. TIE BAR WITH: SB 0701'25

2025-2026 Regular Session Introduced by Sarah Anthony and 4 co-sponsors

Michigan bill prohibits foreclosure and wage garnishment for medical debt collection, protecting patients from aggressive creditor tactics on healthcare costs.

referred to Committee on Health Policy
#civilprocedure:foreclosure #civilprocedure:garnishment #health:other
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Bill Summary · SB 702

Legislative bill overview

SB 702 would prohibit creditors from using foreclosure or wage garnishment procedures to collect medical debt in Michigan. The bill creates a new statutory framework that treats medical debt differently from other consumer debts by restricting the collection mechanisms available to creditors.

Why is this important

Medical debt is the leading cause of personal bankruptcy in the United States, and wage garnishment can significantly impact a debtor's ability to meet basic living expenses. This bill addresses a specific pain point where medical debt collectors use aggressive collection tactics that can destabilize households already burdened by healthcare costs.

Potential points of contention

  • Creditor concerns: Medical providers and debt collectors argue these restrictions reduce their ability to recover legitimate debts and could increase healthcare costs or reduce credit availability for patients
  • Scope definition: Unclear whether the prohibition applies to all medical-related debt (hospital bills, pharmaceuticals, medical equipment) or specific categories, and how it affects debt buyers who purchase medical debt portfolios
  • Enforcement mechanism: The bill doesn't specify how violations would be enforced, what penalties apply, or whether consumers have private rights of action

Compiled from official sources — confirm details with the bill’s official record.

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