by “Michigan’s most vulnerable debtors deserve protection—not political obstruction.”
That’s the central argument made by the National Consumer Bankruptcy Rights Center (NCBRC), the National Association of Consumer Bankruptcy Attorneys (NACBA), and the National Consumer Law Center (NCLC) in a critical amicus brief filed before the Michigan Court of Claims. These leading consumer advocacy organizations are weighing in on a legal battle that could determine the financial future of countless struggling Michiganders.
At issue is House Bill 4901 (HB 4901)—a long-overdue update to Michigan’s bankruptcy exemption laws that would allow debtors to keep their homes, cars, and basic assets while seeking financial relief. The bill passed both chambers of the Michigan Legislature. But in a stunning act of defiance, House Speaker Matt Hall and Clerk Scott Starr have refused to present the bill to Governor Gretchen Whitmer, effectively blocking it from becoming law.
NCBRC, NACBA, and NCLC have stepped in to argue that this political maneuver not only undermines democracy but has real and devastating consequences for Michigan residents who desperately need relief from crushing debt.
Why This Amicus Brief Matters
The amicus brief filed by these three consumer advocacy powerhouses makes it clear: Michigan’s outdated bankruptcy laws are leaving debtors trapped in financial ruin. The brief highlights several key points:
- The Michigan House’s refusal to present HB 4901 violates the state’s constitutional process. Once a bill passes both chambers, it must be transmitted to the Governor.
- Current bankruptcy exemptions are outdated and inadequate. The laws were last updated in 2005, and inflation has left homeowners and car owners with far less protection.
- Michigan’s most vulnerable residents—seniors, widows, and those on fixed incomes—are being unfairly punished. Many are forced to sell their homes or avoid bankruptcy altogether because the law doesn’t protect enough of their assets.
- HB 4901 was passed with bipartisan support and must be enacted to ensure that Michigan residents can get the “fresh start” that bankruptcy is meant to provide.
A copy of the brief is here: Amici Brief
What Happens Next?
The Michigan Court of Claims will now decide whether the House Speaker and Clerk must comply with the law and transmit HB 4901 to Governor Whitmer. If the court rules in favor of the Senate, it will be a victory not just for legislative transparency, but for thousands of Michigan families who are struggling to stay afloat.
Stay Updated
NCBRC, NACBA, and NCLC remain committed to fighting for consumer bankruptcy protections. Follow this case closely—its outcome will affect thousands of Michigan families.