HB2377 Summary

• Requires debt collection summonses to include a separate notice with prominent language informing debtors of protected assets, legal resources, and debtor rights to request payment plans or court-reviewed settlements.

• Reduces wage garnishment limits from 15% to 10% of gross weekly wages and increases the weekly income threshold from 45 times to 80 times the minimum wage; adds new protections for independent contractor income at 100 times the minimum wage.

• Increases homestead exemption from fixed $15,000 to "modern homestead exemption" defined as the greater of $260,000 or the median home sales price in the debtor's metropolitan statistical area or county.

• Eliminates revival of consumer debt judgments after 7 years from entry date and bars recovery of accumulated interest if action not brought within 5 years of cause of action accrual.

• Expands personal property exemptions including increasing motor vehicle equity exemption from $2,400 to $25,000, tools of trade from $1,500 to $7,500, and adds new exemptions for health savings accounts, educational loans, and up to $15,000 in bank accounts pending hearing.