Facing wage garnishment or bank account garnishment can be overwhelming, especially when you’re already struggling financially. If you live in Michigan, you may be entitled to claim exemptions that protect a portion—or sometimes all—of your money from creditors.
In Michigan, you can claim exemption from garnishment by filing an objection with the court within 14 days of receiving the garnishment notice. The court will review your claim and may schedule a hearing to decide whether some or all of your income or funds are legally protected.
If your income or bank account is being garnished, we can help you quickly file the necessary paperwork and fight to protect your money. Call Kostopoulos Bankruptcy Law at 877-969-7482 to speak with an experienced Michigan garnishment defense attorney. With decades of experience stopping and reducing garnishments, we’ll ensure your exemption rights are fully asserted and safeguarded.
In this guide, I’ll explain how exemptions work in Michigan, the steps to claim them, and how to strengthen your case in court.
Understanding Garnishment in Michigan
<strong”>Garnishment is a legal process that allows a creditor to collect money from your paycheck or bank account to satisfy a judgment. In Michigan:
- Wage garnishment: Up to 25% of your disposable income can be withheld.
- Bank account garnishment: Funds in your checking or savings account may be frozen or seized.
- Creditors must first win a lawsuit and obtain a court judgment before garnishing wages or accounts (except for debts like child support or taxes).
Knowing your rights and acting quickly is critical to protecting your income and property.
When You Can Claim Exemption
Michigan law provides several scenarios where you can claim an exemption from garnishment:
- Income Exemptions: Certain income sources are protected by law, including:
- Social Security benefits
- Supplemental Security Income (SSI)
- Veterans’ benefits
- Public assistance (e.g., TANF, SNAP)
- Unemployment and workers’ compensation
- Certain pensions and retirement funds
- Financial Hardship: If garnishment leaves you unable to pay essential living expenses (rent, utilities, food), you can request a hardship exemption.
- Incorrect Garnishment: If the garnishment is for an invalid or already-paid debt, you can object and seek to have it removed.
Steps to Claim Exemption from Garnishment in Michigan
To legally claim your exemption, follow these steps:
1. Review the Garnishment Notice
Once served, carefully read the notice. It includes instructions, deadlines, and the forms needed to object.
2. Complete the Objection to Garnishment Form
- Use MC 49 (Objection to Garnishment) for wages or bank accounts.
- Clearly state why your income or funds should be exempt (e.g., Social Security income, financial hardship).
3. File the Objection with the Court
- File the completed form with the same court that issued the garnishment.
- You must file within 14 days of being served with the notice.
4. Serve a Copy to the Plaintiff and Garnishee
- Send copies to the creditor (plaintiff) and your employer or bank (garnishee).
5. Attend the Court Hearing
- The court may set a hearing to review your objection.
- Bring documentation supporting your exemption claim (e.g., bank statements showing Social Security deposits, proof of income, bills demonstrating hardship).
If the judge rules in your favor, the garnishment will be reduced or stopped.
Commonly Exempt Income and Assets
| Income/Asset Type | Exempt from Garnishment? |
|---|---|
| Social Security Benefits | Fully exempt under federal law |
| Supplemental Security Income (SSI) | Fully exempt |
| Veterans’ Benefits | Fully exempt |
| Unemployment Benefits | Fully exempt |
| Workers’ Compensation | Fully exempt |
| Retirement Funds/Pensions | Generally exempt |
| Child Support Payments | Fully exempt |
Hardship Exemptions for Wage Garnishment
If your wages are garnished and you don’t have fully exempt income, you may still request a hardship exemption. Michigan courts consider:
-
- Your household income and size
Necessary living expenses (rent, mortgage, utilities, food, medical care)
- Whether garnishment prevents you from supporting dependents
If approved, the judge may lower the garnishment percentage or stop it altogether.
What Happens After Filing an Exemption Claim
- The court reviews your objection and supporting evidence.
- A hearing may be held to allow both you and the creditor to present your arguments.
- If successful, the garnishment is modified or lifted.
- If denied, garnishment continues, but you may appeal or explore other relief options like bankruptcy.
How Bankruptcy Can Stop Garnishment
If exemptions do not fully protect your wages or accounts, filing bankruptcy in Michigan provides broader relief:
- Automatic stay: Immediately stops most garnishments and creditor actions.
- Chapter 7 bankruptcy: May wipe out unsecured debts entirely.
- Chapter 13 bankruptcy: Allows you to repay debts through a structured plan while halting garnishments.
In many cases, bankruptcy can also help recover wages garnished within 90 days before filing.
Tips for Successfully Claiming an Exemption
- Act quickly: The 14-day deadline is strict; missing it forfeits your exemption rights.
- Provide evidence: Courts require documentation to prove exempt income or hardship.
- Use the correct forms: Errors in paperwork can delay or deny your claim.
- Seek legal advice: An experienced bankruptcy and debt relief attorney can guide you through objections and represent you in court if necessary.
Final Thoughts
Michigan law protects certain income and allows you to claim exemptions to reduce or stop garnishments—but you must act fast and follow the proper process. If exemptions aren’t enough, bankruptcy may offer comprehensive protection and debt elimination.
At Kostopoulos Bankruptcy Law, we’ve helped thousands of Michigan residents successfully stop wage and bank garnishments. Our experienced attorneys can file your objection, argue for exemptions in court, and explore whether bankruptcy is the best long-term solution.
Call Kostopoulos Bankruptcy Law Today
If you’re facing wage or bank garnishment in Michigan, don’t wait. Call 877-969-7482 to speak directly with a bankruptcy lawyer. With over 15 years of experience helping 10,000+ clients stop garnishments, we can protect your income and help you achieve lasting financial relief.
Resources:
- Michigan Legal Help – Objecting to Garnishment – Free guidance on filing objections to garnishment in Michigan.
- Michigan Courts – Garnishment Forms – Official court forms and instructions for claiming exemptions.
- U.S. Department of Labor – Wage Garnishment – Federal information on wage garnishment laws and protections.
- Social Security Administration – Garnishment of Social Security Benefits – Rules on protecting Social Security income from garnishment.
Further Reading:
Does Bankruptcy Stop Wage Garnishments?
Do Employers Have to Notify Employees of Wage Garnishment?
FAQs
How much of my wages can be garnished in Michigan?
Up to 25% of your disposable income can be garnished unless exemptions apply.
How long do I have to file an objection?
You must file within 14 days of receiving the garnishment notice.
Can Social Security be garnished in Michigan?
No, Social Security benefits are fully exempt from garnishment.
What if the court denies my exemption claim?
You can appeal or consider filing bankruptcy to stop garnishment.
Will bankruptcy stop a garnishment immediately?
Yes. Filing Chapter 7 or Chapter 13 bankruptcy triggers an automatic stay that halts most garnishments right away.