Report: No States Fully Protect Families from Wage and Asset Seizures as Debt Levels Soar

Families are being squeezed from every side, with state laws lacking in protection.

A new report from the National Consumer Law Center finds no state fully protects families from wage and asset seizures as debt levels soar. In the middle of an affordability crisis, outdated exemption laws allow debt collectors to take wages, cars, and even basic household essentials, pushing families closer to poverty.

Nine states earned F grades, while no state earned an A. Stronger protections aren’t just possible, they’re necessary to keep families working, housed, and financially stable.

At MDC, we believe economic systems should protect people, not punish them. It’s time for states to update exemption laws so families can truly get a fair chance at a fresh start.

Read the report here: Report: No States Fully Protect Families from Wage and Asset Seizures as Debt Levels Soar – NCLC