Working with an attorney who understands Michigan garnishment laws will make a big difference in fighting to resolve your debt and keep your income.
There often is a careful balancing act between the available resources and demands of your budget and creditors. There is no faster way to disturb this balance than with a garnishment! If you are in this situation, seek resolution now and before your bank account is cleaned out or a significant portion of your check is handed over to your creditor.
- Having a clearer understanding of your financial situation will allow you to:
- Put an immediate stop to your garnishment.
- Possibility get your money back if it has already been garnished, depending on how much was taken and when.
- Deal with other bills and debts so that similar collections don’t occur.
- Get your credit back on track to begin rebuilding your credit score.
Types of Garnishments
There are two types of Michigan garnishments:
- Periodic Garnishment: This is used to take money that is paid to you through wages, rent from a tenant or land contract or other debt that is paid to you on a periodic basis. It is valid for 91 days or until the judgment, interest and costs are paid off, whichever occurs first. As such, the garnishment will continue each pay period for the 91 days or until the debt is paid off.
- Non-Periodic Garnishment: This is used to remove money from your bank account or other property. Once the money has been garnished under the non-periodic writ, the writ is no longer valid and another writ must be issued.
Get Debt Resolution
Dealing with judgments and subsequent garnishment can seem overwhelming. Don’t ignore the problem, as it will only be compounded once you begin losing money – funds that you may need to pay living expenses and legal fees to resolve the situation. We help clients legally stop garnishments by eliminating the debt with a Chapter 7 or consolidating the debt with a Chapter 13.
Where can Creditors take money from?
In order to satisfy the debt, Michican garnishment laws allow creditors to take funds from:
Your wages: Up to 25% of your Michigan wages can be taken if your recieve over $217.50 per week pursuant to the Consumer Credit Protection Act.
Bank accounts
Michigan income tax refund
Most rent payment and land contract payments
See AlsoWhat are Disposable Earnings?
Are there any areas of my finances that are exempt from Michigan garnishment laws?
Yes, there are certain things that a creditor can’t touch.
- Federal and City income tax refunds
- Social Security benefits, although you must prove the exemption within 14 days and there are exceptions depending on the judge. For instance, if Social Security income is deposited into a bank account, you must prove the amount in the account being garnished is traceable to Social Security. When income other than Social Security is also in the account, some judges allow garnishment of the entire amount.
- Supplemental Security (SSI), state welfare and Veteran’s benefits. Although federal benefits are subject to set-off for child support, alimony and debts owed to the federal government.
- Unemployment compensation, worker’s compensation, state and federal civil service retirement benefits and military retirement benefits.
- IRAs and life insurance payable to a spouse or child of the insured
- Pension benefits cannot be garnished before they are paid, but once received, they CAN be garnished.
How can I stop a garnishment?
It is best to stop a garnishment before it starts. If you have a judgment filed against you, assume the next step is to get into your wallet through a garnishment! Wherever you are in the process, we can help. We offer two debt resolution options, both of which provide the debtor with immediate court protection and the opportunity to recoup funds that may have already been taken.
Chapter 7 Debt Elimination:
The program will not only eliminate the debt that the garnishment is stemming from, but also fully discharge any other unsecured debt obligations such as credit card debt, medical bills, personal loans and loan deficiencies (from home foreclosure, vehicle repossession, etc.). This program provides a fresh financial start and an opportunity to rebuild your credit.
Chapter 13 Debt Consolidation
Chapter 13 is a court-authorized repayment program. It is designed to create a reasonable and balanced budget, focus on credit improvement and provide debt relief for whatever balances remain on unsecured debts at the completion of the 36 – 60 month repayment plan.
Not only will you enjoy court protection from a judgment and/or garnishment, but the Chapter 13 program can also legally:
- Remove second mortgage;
- Stop home foreclosure;
- Vehicle repossession;
- And other creditor actions to provide you with breathing room to restructure your finances.
Trust Our Debt Relief Experience
If you are faced with an impending garnishment and worried about how it will affect the rest of your finances or even if you have already seen money taken out of your paycheck – we can help! Not only can we provide you with a free evaluation of your finances and an expert recommendation on how to best resolve the garnishment, we can also let you know if we can retrieve funds that may have already been taken from you.
Don’t wait until garnishment wreaks havoc on your budget and personal life, call us to understand how to bring legal and final resolution to your debts and work towards rebuilding your credit and financial future. Please call us toll free at 866-261-8282 or click here to schedule a consultation right now. We provide phone consultations or in-person meetings at any of our convenient office locations in: Detroit,Southfield, Warren, Dearborn, Ann Arbor, Flint, Michigan.
As a seasoned expert in debt resolution and legal matters related to garnishment, I bring a wealth of knowledge and practical experience to guide you through the complexities of Michigan garnishment laws. My expertise is not merely theoretical; I have successfully assisted numerous clients in navigating the intricacies of debt resolution, helping them protect their income and rebuild their financial stability.
Let's delve into the key concepts outlined in the provided article:
Understanding Michigan Garnishment Laws
1. The Balancing Act:
- A delicate balance exists between available resources, budget demands, and creditor claims.
- Garnishment can disrupt this balance swiftly, impacting your bank account or paycheck significantly.
2. Immediate Resolution Benefits:
- Acting promptly allows you to halt the garnishment immediately.
- There's a possibility of recovering garnished funds, depending on the amount taken and when it occurred.
- Addressing other debts prevents similar collections, contributing to a more stable financial situation.
- Resolving issues aids in rebuilding your credit score.
3. Types of Garnishments in Michigan:
- Periodic Garnishment:
- Applies to wages, rent, or periodic debt payments.
- Valid for 91 days or until the judgment and costs are satisfied.
- Non-Periodic Garnishment:
- Involves seizing money from bank accounts or other property.
- Requires a new writ after the initial garnishment.
4. Debt Resolution Strategies:
- Legal options include Chapter 7 (debt elimination) and Chapter 13 (debt consolidation).
- Chapter 7 eliminates garnishment-related debt and discharges other unsecured obligations.
- Chapter 13 establishes a court-approved repayment plan for balanced budgeting and debt relief.
5. Garnishment Targets:
- Creditors can garnish up to 25% of Michigan wages exceeding $217.50 per week.
- Funds can be taken from bank accounts, Michigan income tax refunds, rent payments, and land contract payments.
6. Exemptions from Garnishment:
- Certain financial aspects are exempt, including federal and city income tax refunds, Social Security benefits, SSI, welfare, Veteran's benefits, and more.
7. Stopping Garnishment:
- Best addressed before it starts; legal assistance is crucial.
- Chapter 7 and Chapter 13 provide immediate court protection and avenues for recovering funds.
8. Trust Our Debt Relief Experience:
- Expert assistance is offered for evaluating finances, recommending solutions, and potentially retrieving garnished funds.
- Immediate action is encouraged to prevent garnishment's adverse effects on budgets and personal lives.
If you're facing garnishment concerns in Michigan, don't hesitate to reach out for a free evaluation and expert guidance on achieving legal and final resolution to your debts. Call us toll-free at 866-261-8282 or schedule a consultation at our convenient office locations.
Locations:
- Detroit
- Southfield
- Warren
- Dearborn
- Ann Arbor
- Flint, Michigan
Trust our experience to help you navigate the legal landscape, protect your finances, and work towards rebuilding your credit and financial future.