SB 408 Summary

• Increases homestead exemption from $3,500 to $125,000 in value ($200,000 if debtor or dependent is 65+ or disabled), with special rules for mobile homes in parks.

• Establishes new earnings exemption for garnishment: whichever is smaller of (1) earnings exceeding 35 times minimum wage per week, or (2) 15% of weekly garnishable earnings.

• Exempts specific benefits from garnishment including means-tested public assistance, unemployment compensation, federal and state earned income tax credits, disability benefits, and crime victim compensation.

• Requires courts to provide debtors with notices of their exemption rights and creates procedures for debtors to claim exemptions through hearings before property seizure occurs.

• Protects employees from discipline or discharge based on garnishment actions and establishes automatic adjustments to dollar amounts in exemption provisions every three years based on Consumer Price Index and home price index changes.