Receiving notice of a wage garnishment in Michigan can be a frightening experience. The National Association of Consumer Credit Attorneys (NACCA) is here to provide you with a clear and actionable plan to understand your rights and navigate this challenging situation. By following these steps, you can take control and work towards resolving the garnishment.

Step 1: Verify the Garnishment

Before taking any action, it’s crucial to confirm the legitimacy and accuracy of the wage garnishment:

  • Confirm Legitimacy: Ensure there is a valid court judgment against you and that the garnishment was filed correctly with the court. If you are unsure about the judgment, contact the court that supposedly issued it.
  • Review Documentation: Carefully examine the court documents or garnishment notice sent by your employer. Understand who the creditor is, the case number, and the amount claimed.
  • Check Garnishment Limits: Michigan law, in line with federal regulations, limits the amount that can be garnished from your wages. Verify that the garnishment doesn’t exceed the lesser of 25% of your disposable earnings (your take-home pay after legally required deductions) or the amount by which your disposable earnings for that week exceed 30 times the federal minimum hourly wage (currently $7.25, making the protected weekly amount $217.50).  

Step 2: Understand Your Rights and Exemptions

Michigan law protects certain sources of income from being garnished. It’s vital to identify if any of your income falls under these exemptions:

  • Protected Income Sources: Common exempt income includes Social Security benefits, disability benefits, pensions, veteran’s benefits, unemployment benefits, and certain public assistance payments. The specific list can be found on Michigan Legal Help or by consulting with an attorney.
  • Calculate Disposable Earnings: Understand how your disposable earnings are calculated. This is your gross pay minus legally required deductions like federal and state taxes, and social security. Use this figure to verify the garnishment limits in Step 1.
  • Job Security: Remember that under federal and Michigan law, your employer cannot legally fire you solely due to a single wage garnishment.

Step 3: Request Garnishment Documents

To fully understand the situation, obtain complete copies of all relevant garnishment documents:

  • From Your Employer: Your employer is required to provide you with a copy of the garnishment order.
  • From the Creditor or Court: You have the right to request copies of the original court documents related to the judgment and the garnishment from the creditor or the court that issued the order.
  • Check Accuracy: Carefully review these documents to confirm the accuracy of the claimed debt amount and the remaining judgment balance. Discrepancies could be grounds for objection.

Step 4: Evaluate Grounds for Objection

Michigan provides a specific form, MC 49 (Objections to Garnishment), outlining potential reasons why a garnishment might be improper. Review this form carefully and see if any of the following grounds apply to your situation:

  • Exempt Income is Being Garnished: As identified in Step 2.
  • Judgment Has Already Been Paid or Satisfied: You have already paid the debt in full.
  • Bankruptcy Filed (Automatic Stay): You have filed for bankruptcy, which triggers an automatic stay preventing most collection actions, including garnishments.
  • Garnishment Exceeds Legal Limit: As outlined in Step 1.
  • Garnishment Improperly Issued: There was a procedural error in the garnishment process, the garnishment was served on the wrong person, or the judgment is invalid.
  • An Installment Payment Order Already Exists: The court has already ordered a payment plan for the debt.

You can find Form MC 49 on the Michigan Courts website (courts.michigan.gov).

Step 5: File an Objection (if applicable)

If you believe valid grounds for objection exist, you must file a formal objection with the court:

  • Complete Form MC 49: Clearly and concisely state the specific reasons for your objection, referencing the applicable grounds on the form.
  • File Within 14 Days: In Michigan, you generally have 14 days from the date you received the garnishment notice to file your objection with the court. Missing this deadline can significantly limit your options.
  • Send Copies: You are legally required to send a copy of your filed objection to both the creditor (or their attorney) and the garnishee (your employer). Send these copies via certified mail with return receipt requested to ensure proof of delivery.
  • Attend the Hearing: The court will likely schedule a hearing on your objection. Be sure to attend and present any evidence and documentation (bank statements, exemption letters, payment records, etc.) that supports your claims. The court will then decide whether to uphold, modify, or dismiss the garnishment.

Step 6: Negotiate Directly with the Creditor (Optional)

Even if you have grounds to object or are unsure, consider reaching out directly to the creditor or their attorney to explore potential resolutions:

  • Propose a Payment Arrangement or Settlement: Offer a manageable payment plan or a lump-sum settlement for a reduced amount.
  • Get it in Writing: If you reach an agreement, ensure all terms are clearly documented in a written agreement signed by both parties.
  • Request a Formal Release of Garnishment: Once the agreement is fulfilled, request the creditor to file Form MC 50 (Release of Garnishment) with the court and notify your employer to stop the deductions.

Step 7: Seek an Installment Payment Order (if needed)

If the wage garnishment is causing significant financial hardship, you can ask the court to order an alternative payment plan:

  • File MC 15 (Motion for Installment Payments): Complete this form, clearly outlining your financial situation and proposing a manageable repayment schedule for the debt.
  • Court Approval: If the court approves your motion, it will issue an Installment Order (MC 15a). As long as you make payments according to this schedule, the wage garnishment will typically be paused.
  • Forms MC 15 and MC 15a are available on the Michigan Courts website.

Step 8: Monitor Garnishment Activity

Regardless of the outcome of any objections or negotiations, actively monitor your pay stubs and any employer disclosures (such as Form MC 14, Garnishee Disclosure) to ensure the correct garnishment amount is being deducted. If you notice any incorrect deductions, contact your employer’s payroll department immediately to rectify the error.

Step 9: Address Employer Violations (if applicable)

As stated earlier, it is illegal for your employer to terminate or retaliate against you solely due to a single wage garnishment. If this occurs, take immediate action:

  • Report to the U.S. Department of Labor, Wage and Hour Division: File a formal complaint about the illegal termination or retaliation.
  • Seek Legal Counsel: Consult with a consumer law attorney to understand your rights and pursue legal action against your employer for this violation of federal and Michigan law.

Step 10: File Complaints or Seek Legal Help (if unresolved)

If you experience abusive or illegal debt collection practices related to the garnishment, or if you are unable to resolve the issue on your own, consider the following:

  • File a Complaint with the Michigan Attorney General’s Office: Report unfair or deceptive collection tactics.
  • File a Complaint with the Consumer Financial Protection Bureau (CFPB): The CFPB handles complaints about improper conduct by creditors and debt collectors.
  • Seek Legal Advice or Assistance: Contact a consumer attorney or a local legal aid organization for guidance and representation. The State Bar of Michigan and Michigan Legal Help can provide resources.

Step 11: Consider Bankruptcy (Last Resort)

If you are facing multiple garnishments or are overwhelmed by debt, bankruptcy may be a viable option to obtain significant financial relief. Filing for bankruptcy triggers an automatic stay, which immediately halts most collection actions, including wage garnishments. Consult with a qualified bankruptcy attorney to discuss whether Chapter 7 or Chapter 13 bankruptcy is the right choice for your situation.  

Forms and Resources:

  • MC 49: Objection to Garnishment: courts.michigan.gov
  • MC 15: Motion for Installment Payments: courts.michigan.gov
  • MC 15a: Installment Order: courts.michigan.gov
  • MC 50: Release of Garnishment: courts.michigan.gov
  • MC 14: Garnishee Disclosure: courts.michigan.gov
  • Michigan Legal Help website: michiganlegalhelp.org
  • Michigan Courts Forms: courts.michigan.gov

Facing a wage garnishment in Michigan doesn’t mean you’re without options. By understanding your rights, acting promptly, and utilizing the resources available to you, you can navigate this process and work towards a resolution. If you are dealing with a wage garnishment, NACCA strongly recommends seeking advice from a qualified consumer law attorney in Michigan to protect your financial future. You can find a NACCA attorney in your area by visiting NACCA.com.

Frequently Asked Questions (FAQ) About Michigan Wage Garnishment:

Q: How soon can a wage garnishment start after a judgment is entered against me in Michigan? A: Once a creditor obtains a judgment, they can typically begin the wage garnishment process relatively quickly. Your employer will be served with the garnishment order and is legally obligated to begin withholding wages within a specific timeframe after receiving it.

Q: Can all types of income be garnished in Michigan? A: No. Michigan law exempts certain types of income from garnishment, including Social Security benefits, disability benefits, unemployment benefits, and some public assistance payments. It’s important to verify if your income source is protected.

Q: What should I do if I believe the garnishment amount is incorrect? A: First, carefully review your pay stubs and calculate the legally allowed garnishment amount based on your disposable earnings (as outlined in Step 1 and 2). If you believe an error has been made, immediately contact your employer’s payroll department. You also have the right to file an objection with the court (Step 5), citing the incorrect calculation as your reason.

Q: What is the deadline for filing an objection to a wage garnishment in Michigan? A: You generally have 14 days from the date you received the garnishment notice to file Form MC 49 (Objection to Garnishment) with the court. Missing this deadline can significantly limit your ability to challenge the garnishment.

Q: Will filing for bankruptcy stop a wage garnishment in Michigan? A: Yes, filing for bankruptcy (under either Chapter 7 or Chapter 13) triggers an automatic stay, which immediately stops most collection actions, including wage garnishments.

Q: Where can I find the forms mentioned in this article, such as MC 49 and MC 15? A: All Michigan court forms, including MC 49 (Objection to Garnishment), MC 15 (Motion for Installment Payments), and MC 50 (Release of Garnishment), are available on the official Michigan Courts website: courts.michigan.gov.

Q: If I negotiate a payment plan with the creditor, will the garnishment automatically stop? A: Not necessarily. While the creditor may agree to stop the garnishment as part of the agreement, it’s crucial to ensure they formally file Form MC 50 (Release of Garnishment) with the court and notify your employer to cease the deductions. Get the agreement in writing.

Q: Can a debt collector garnish my bank account in Michigan in addition to my wages? A: Yes, creditors who have obtained a judgment can also attempt to garnish your bank accounts in Michigan. The process for bank garnishment is different from wage garnishment, and certain funds in your bank account may also be exempt from garnishment.

Q: What should I do if my employer threatens to fire me because of a wage garnishment? A: This is illegal under both federal and Michigan law for a single garnishment. Immediately report this violation to the U.S. Department of Labor, Wage and Hour Division, and seek legal counsel from a consumer law attorney.

Disclaimer: This information is for educational purposes only and does not constitute legal advice. If you are facing a wage garnishment in Michigan, it is crucial to consult with a qualified consumer law attorney to discuss your specific situation and legal options. The National Association of Consumer Credit Attorneys (NACCA) is a nationwide bar association whose members are attorneys who represent consumers in disputes with creditors and debt collectors. You can find a NACCA attorney in your area by visiting consumercreditlaw.org .