By definition, a garnishment is a court order that allows for a portion of an individual's income or money in a bank account to be taken directly by a creditor to pay off a debt. In Michigan, an individual, organization or private creditor such as a landlord may not garnish a person's wages until the court has issued an order allowing it. As of 2010, federal laws mandate that $154.50 per week is exempt from garnishment. However, up to 25 percent of remaining wages may garnished to satisfy the debt.
Eligible Money
When sued for debt collection by an individual, company or private debtor, the court will determine your financial ability to pay the debt by assessing bank accounts, employment earnings, tax returns, cash value of life insurance policies or any credit owed to you by the state of Michigan, such as the Michigan Home Heating Credit.
Not all income sources are eligible for garnishment, such as Social Security Disability. However, the debtor must prove the income is exempt; if not proven, those monies are fair game to the creditor. In this situation, if contacted to garnish funds from a bank account, the bank will notify the account holder of this request. The account holder then has 14 days to dispute the action by filing Michigan Court form MC-49 with the court overseeing the garnishment. A hearing to discuss the form and the exemption will be scheduled after the form is received. If the form MC-49 is not filed within 14 days of the request, the money will be automatically garnished from the account, regardless of the funding source.
Request for Garnishment
Once the judgement for a creditor has been issued, he must wait 21 days before a garnishment can begin. This provides time for the debt to be paid by the debtor. After the 21-day waiting period has expired, the creditor can request a periodic or nonperiodic garnishment.
A periodic writ or garnishment allows for the collection of money that is paid to the debtor on a regular basis, such as wages, rent or land contract payments. The garnishment order stands for 91 days, or until the debt is paid off.
A nonperiodic garnishment order is a one-time collection by the creditor from the debtor's bank account. After the one-time withdrawal has been made, the writ is no longer in effect and if any outstanding balance of the debt remains a separate writ must be filed for and granted by the court.
Fighting a Garnishment
Michigan courts allow a debtor to object to a writ of garnishment, but specific criteria must be met. The debtor must file form MC 49 with the court to object. The objection must be made because the funds being garnished are not eligible, an installment payment plan has been arranged, another garnishment order is already in place and the maximum garnishment amount is already been reached, the debt has been paid in full or the garnishment was invalid. Objection to a garnishment order for any other reason is not allowed.
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