How to Reduce or Stop Garnishments in Michigan

If you have an outstanding balance with a creditor and neglect to work out a payment arrangement or fail to make payments as agreed, the creditor might sue you in the Michigan court system and obtain a "writ of garnishment." This means, if the court sees fit, the judge may award your creditor to garnish your wages up to 25% in Michigan. The writ of garnishment, however, only stands for three months in Michigan and requires renewal thereafter, every three months until the act of garnishment satisfies your debt. The law does provide the opportunity to reduce or in some cases even stop the garnishment of your wages. This will require you to appear in court.

Instructions

1

Go to the court where your creditor originally filed the case for judgment against you and file a "Claim Exemption." The court will provide you will the forms you will need to fill out and file. You will need to provide proof of your income, a documentation of all or your expenses and obligations and the reasons why you are requesting a reduction or elimination of wage garnishment. According to federal law if you make only minimum wage or close to it, the law does not permit garnishment of wages. If you only make minimum wage, you will need to demonstrate this to the court. Once you file a claim exemption, the court will set a hearing date and hear your case.

2

Challenge the creditor's claim to the alleged debt when the writ of garnishment expires after three months. Upon expiration, your creditor must file for the writ of garnishment again. They must also serve you notice for the hearing. Attend the hearing and challenge the creditor claims or propose a reasonable payment plan to the court that does not require garnishment of wages or seeks a reduction in the original garnishment order.

3

File for bankruptcy, either a Chapter 7 liquidations or Chapter 13 reorganization, which will automatically stop any garnishments. You will need to notify your creditors and your payroll department as soon as your file. In some cases, you might be able to recover funds already garnished. Bankruptcy might seem like a drastic step, but if you have multiple creditors seeking wage garnishments, this might be your only option and likely your best option. Bankruptcy will provide you with the breathing room you need to re-establish yourself financially, while protecting your basic living needs.