Bill > HB1870

This bill modifies provisions related to garnishments, which are legal procedures where a court orders a third party (like a bank) to seize a debtor's assets to satisfy a debt. Key changes include increasing the value of certain exempt property, such as household furnishings and vehicles, and establishing a new process for garnishing bank accounts. Specifically, the bill raises the exemption for household goods from $3,000 to $15,000, for a wedding ring and other jewelry from $1,500 and $500 respectively to $1,500 and $1,700, for general personal property from $6,700 to $1,700, for tools of the trade from $3,000 to $3,000, for vehicles from $3,000 to $5,000 with an option to use unused household goods exemption, and for mobile homes from $5,000 to $12,000, while also increasing the homestead exemption from $15,000 to $40,000. It also introduces a new section (525.235) that outlines specific rules for garnishing funds held by financial institutions, including requirements for the garnishment order, how funds are attached, and the timeline for releasing funds or paying them into court, with these provisions taking effect on January 1, 2028. Additionally, the bill clarifies that statements made during a judgment debtor examination are protected by full use and derivative use immunity from prosecution, except in cases of perjury or false statements, and it mandates that dollar amounts for certain exemptions will be adjusted every three years based on the Consumer Price Index, starting in 2029. The overall effective date for the changes to sections 513.380, 513.430, and 513.475, and the enactment of section 513.423, is January 1, 2027.

Business and Industry, Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB1870&year=2026&code=R