House Bill 6467 Summary

• Amends the Revised Judicature Act to establish requirements for valid common law assignments for the benefit of creditors, including that assignments must be without preference among creditors, cover all non-exempt property, and be filed with the circuit court clerk within 10 days along with the assignment instrument, creditor list, and a bond.

• Creates a new section 5202 establishing specific property exemptions from assignment or liquidation proceedings, including family pictures, wearing apparel, household goods (up to $3,450), a motor vehicle (up to $3,175), homestead property (up to $34,450 or $51,650 if debtor/dependent is 65+ or disabled), retirement accounts, and various other personal property items with specified dollar limits.

• Requires the bond for assignment to be in a penal sum at least double the value of assigned property, made to the assignor and creditors jointly, and signed by the assignee and sufficient sureties who verify their net worth exceeds the bond amount.

• Establishes automatic inflation adjustment of all dollar amounts in section 5202 every three years beginning March 1, 2011, based on the consumer price index for Detroit-Ann Arbor-Flint, rounded to the nearest $25.

• Repeals Chapter 54a of the Revised Judicature Act and makes technical corrections to update language throughout the affected sections.