Sec. 1. 14 MRSA §3127, sub-§4 is enacted to read:

4.__Consideration of exempt sources.__For the purposes of this subsection, "exempt source" means a source that is exempt from attachment and execution under chapter 507, subchapter II, article 7.__Notwithstanding the restriction on consideration of exempt sources under subsection 1, the court may order the judgment debtor to make specified installment payments to the judgment creditor if:

A.__Upon a disclosure hearing, it is shown that the judgment debtor is an individual who is receiving or will receive:

(1)__Insufficient money or earnings to permit the court to order installment payments under subsection 1; and

(2)__Money or earnings from an exempt source that, but for the fact that the money or earnings are exempt, would, either alone or in combination with any money or earnings considered under subsection 1, permit the court to order installment payments under subsection 1; and

B.__The maximum amount of earnings for any week subject to an installment order under this subsection is the same as that calculated under subsection 1.

In making an order under this subsection, the court may not order the garnishment, withholding or attachment of money or earnings from an exempt source.

Sec. 2. 14 MRSA §7486, as enacted by PL 1989, c. 88, §2, is repealed.

SUMMARY

Under current law, a judgment debtor receiving money from sources exempt from attachment and execution may not be ordered to pay any of that money to judgment creditors even when that money amounts to a large sum. This bill permits a court to order installment payments where the money received is exempt from attachment and execution and is, either alone or in combination with nonexempt money, large enough in sum to fit within the calculation that under current law permits an installment order. The bill does not permit a court to order the garnishment, withholding or attachment of any exempt money. The bill also repeals a provision of current law that permitted a court in a small claims action to order a judgment debtor to pay up to $15 per month if the debtor was shown not to be indigent.