Michigan allows creditors to garnish your wages for outstanding debts. The creditor has to file a lawsuit against you in a Michigan court, and a judge has to find in favor of the creditor before a wage garnishment can begin. Creditors can also execute a garnishment of your state tax refund.
Garnishment Lawsuit Procedures
A creditor has to file a lawsuit against you in a Michigan court, even if it has headquarters in a different state. Typically, the creditor will hire an attorney in Michigan to file the suit with your local county court. The creditor's lawyer must also officially serve you with the lawsuit paperwork. Lawyers will generally hire a local court process server or pay a fee to your county's sheriff department to serve you with the papers.
Garnishment Limits
Michigan law allows creditors to garnish up to 25 percent of your disposable earnings. For garnishment purposes, your disposable earnings are those after state and federal tax deductions. Just as with federal laws, Michigan exempts income below 30 times the federal minimum wage from garnishment. For example if the minimum wage is $7.25 per hour and your employer pays you weekly, the first $217.50 ($7.25 x 30 = $217.50), less federal and state taxes, is exempt from garnishment.
Lawsuit Objection
After you receive the lawsuit papers in Michigan, you have the right to object to the suit. A court will only accept your objection under certain circumstances. You may object if you already have a wage garnishment that exceeds the legal maximum, if you recently filed for personal bankruptcy, if the creditor did not properly serve you with the garnishment papers, or if your income is garnishment exempt.
Garnishment Expiration
Garnishments expire after 91 days in MIchigan. If you pay off the debt before it expires, your employer completes Form MC 48 Final Statement on Garnishment of Periodic Payments and sends it to you, the creditor and the court. If the garnishment expires before you pay off the debt in full, the creditor has to file a new writ. A judge must approve this writ before garnishment can begin on the balance of your debt.
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