HB0281 Summary

• Requires summons in debt collection actions to include a prominent notice informing debtors of their rights, including protections for Social Security, public benefits, veterans benefits, retirement benefits, vehicle equity ($7,500), home equity ($150,000-$200,000), and bank accounts ($15,000).

• Reduces judgment revival period from 7 years to 5 years after entry, and limits revival to cases where citation proceedings were initiated within one year of judgment entry.

• Shortens judgment enforcement period from 7 to 5 years and reduces wage garnishment allowance from 15% to allow the greater of 90% of gross weekly wages or disposable earnings exceeding 60 times the federal minimum hourly wage.

• Increases homestead exemption from $15,000 to $150,000 for individual debtors and from $30,000 to $200,000 for multiple owners; increases personal property exemptions including motor vehicle equity ($7,500) and general property equity ($15,000).

• Sets consumer debt judgments of $25,000 or less at 2% annual interest instead of 9%, and adds bank account protections ($15,000 exempt) pending hearing before garnishment proceeds.