Bill > SB835

This bill modifies laws related to how creditors can collect debts through court orders, specifically concerning attachment (seizing property before a judgment), execution (seizing property after a judgment), and garnishment (seizing money owed to a debtor). Key changes include extending the time frame for judgment creditors to request a debtor's examination to determine their ability to pay, and strengthening the immunity granted to debtors for statements made during these examinations, protecting them from self-incrimination. The bill also introduces a mechanism for adjusting certain dollar amounts related to property exemptions every three years based on inflation, using the Consumer Price Index, and clarifies that these adjustments will not apply to cases started before they take effect. Furthermore, it significantly increases the value of certain household goods, jewelry, and motor vehicles that are exempt from seizure, and also raises the exemption for a mobile home used as a principal residence. The bill also introduces new provisions for garnishment orders against bank accounts, specifying how and when funds can be attached, requiring financial institutions to notify joint account holders, and outlining procedures for resolving disputes over exempt funds, while also protecting financial institutions from liability when acting in good faith. Finally, it increases the homestead exemption, which protects a person's primary residence from creditors, to $40,000.