Kostopoulos Bankruptcy Law

Category: Wage Garnishments

Do Employers Have to Notify Employees of Wage Garnishment in Michigan?

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Wage garnishment can be a stressful situation for employees facing debt collection. If you’re working in Michigan, you may be wondering: Do employers have to notify employees of wage garnishment?

Yes, Michigan employers are generally required to notify employees of a wage garnishment order. Once an employer receives a writ of garnishment from a court, they must provide the employee with details about the garnishment, including the amount being withheld and the creditor involved. Wage garnishments are typically used to satisfy unpaid debts such as child support, taxes, or court judgments.

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How to Stop Wage Garnishment in Michigan

Posted on by Kostopoulos Bankruptcy Law

Facing wage garnishment can be overwhelming, making it difficult to keep up with essential expenses. You may be asking: How can I stop wage garnishment in Michigan?

Understanding Michigan wage garnishment laws is crucial to effectively stopping wage deductions and protecting your income.

To stop wage garnishment in Michigan, you can file an objection with the court within 14 days, negotiate a repayment plan with creditors, or file for bankruptcy to trigger an automatic stay and halt wage deductions immediately.

With decades of experience helping Michigan residents regain financial stability, I’ve guided countless individuals through the legal process to stop wage garnishments. This guide will explain your legal rights, available options, and practical steps to protect your income.

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FAQs About Stopping Wage Garnishment in Michigan

How to Stop a Garnishment in Michigan?
To stop a wage garnishment in Michigan, file an objection with the court within 14 days of receiving the garnishment notice. You can also negotiate a repayment plan with creditors, apply for an exemption, or file for bankruptcy, which triggers an automatic stay that immediately stops garnishments.
How Do I Claim Exemption from Garnishment in Michigan?
To claim an exemption from garnishment in Michigan, file a Claim of Exemption form with the court that issued the garnishment order. You must provide documentation proving that your income qualifies as exempt, such as Social Security benefits, veterans’ benefits, or other protected income sources.
How Do I File an Objection to a Garnishment in Michigan?
To file an objection to a wage garnishment in Michigan, submit an Objection to Garnishment form to the court within 14 days of receiving the garnishment notice. You must attend the court hearing to present your case, providing evidence of financial hardship, improper calculations, or exemptions that apply to your income.
How Long Can Your Wages Be Garnished in Michigan?
In Michigan, wage garnishments last until the debt is fully paid off or the court orders the garnishment to stop. Periodic wage garnishments remain in effect indefinitely unless successfully contested, while non-periodic garnishments (like bank levies) are one-time occurrences that can be reissued if necessary. In addition to wages, other sources of income such as land contract payments can also be subject to garnishment.
How Do You Escape a Wage Garnishment?
To escape wage garnishment in Michigan, you can:





File for bankruptcy, which stops garnishment immediately.



Negotiate a settlement or payment plan with the creditor.



File an objection in court to contest the garnishment.



Claim an exemption if your income qualifies as protected under Michigan law.
How Do I Write a Letter to Stop Wage Garnishment?
A letter to stop wage garnishment should formally request relief based on financial hardship or an alternative repayment plan. It should include:





Your full name and case number.



A statement of financial hardship explaining why the garnishment should be stopped.



A proposed payment arrangement (if applicable).



Supporting documents proving financial hardship or legal exemptions.

This letter should be sent to the court, your employer, and the creditor handling the garnishment.
Can You Be Garnished Without Being Served in Michigan?
No, Michigan law requires creditors to notify you before garnishing wages. You have 14 days to object after receiving notice.
Where Can I Find Help Stopping Wage Garnishment?
You can contact legal aid organizations, debt counseling services, or a bankruptcy attorney for guidance.

Affordable Lawyer for Wage Garnishment in Michigan

Posted on by Kostopoulos Bankruptcy Law

Wage garnishment can feel like a financial crisis, leaving you struggling to cover basic expenses. You may be wondering: How can I stop wage garnishment in Michigan?

To stop wage garnishment in Michigan, you can file an objection with the court within 14 days of receiving the garnishment notice, negotiate with creditors for a repayment plan, or initiate a bankruptcy filing, which triggers an automatic stay that halts all wage deductions immediately.

As an experienced wage garnishment lawyer in Michigan, I’ve helped hundreds of clients protect their income and explore legal strategies to regain financial stability. This guide explains how wage garnishment works, how to stop it, and why hiring a skilled attorney can make all the difference.

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FAQs About Wage Garnishment in Michigan

How Do I File an Objection to Wage Garnishment in Michigan?
To object to wage garnishment, file an Objection to Garnishment form with the court within 14 days of receiving the notice. The court will schedule a hearing, where you can present evidence of hardship, errors in the garnishment, or qualifying exemptions.
How Long Can Wage Garnishment Last in Michigan?
A wage garnishment remains in effect until the debt is fully paid or legally stopped through objection, settlement, or bankruptcy.
Can a Lawyer Help Reduce Wage Garnishment?
Yes, a wage garnishment lawyer can negotiate with creditors to lower your payments or stop garnishment entirely. They can also file objections or bankruptcy petitions to protect your income.
What Is the Maximum Wage Garnishment in Michigan?
In Michigan, creditors can garnish the lesser of 25% of your disposable earnings or the amount exceeding 30 times the federal minimum wage ($217.50 per week). Certain debts, like child support and taxes, may have higher limits.
Can I Get My Garnished Wages Back?
If a garnishment was improper, you may be able to recover garnished wages by filing an objection and proving the error in court. If you file for bankruptcy within 90 days of garnishment, you may also be eligible to recover wages taken during that period.

Is Workers Compensation Considered Income for Bankruptcies in Michigan?

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Bankruptcy can be a smart strategy for many people in debt, but those who receive funds due to a work-related medical condition often have a critical question: Is workers’ compensation considered income for bankruptcies in Michigan?

No, workers’ compensation benefits are not usually considered income in Michigan bankruptcy cases. However, the treatment of workers’ compensation benefits may vary depending on the type of bankruptcy and other factors. 

However, there are some exceptions to the general rule that could put your worker’s compensation benefits at risk. It’s best to work with a Michigan bankruptcy lawyer who can advise you on protecting the financial support you rely on when dealing with a workplace injury or occupational illness.

In addition, you can read on for some background on how workers’ comp benefits are treated in Chapter 7 and Chapter 13 bankruptcy cases.

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FAQs About Bankruptcy and Workers Comp Income

What is considered income for bankruptcies?
In bankruptcy cases, income includes any money received by the filer regularly, such as wages, self-employment earnings, rental income, pension payments, and Social Security benefits. However, workers’ compensation benefits are generally not considered income under federal bankruptcy law.

These benefits are typically exempt from the income calculation used in the means test for Chapter 7 or disposable income assessment in Chapter 13. Accurate reporting is essential for compliance with bankruptcy requirements.
What assets are exempt from Chapter 7 in Michigan?
Michigan law provides exemptions to protect specific assets during Chapter 7 bankruptcy. Common exemptions include:





Homestead Exemption: Protects equity in a primary residence up to a specified limit.



Personal Property Exemptions: Covers clothing, household goods, and furniture up to a certain value.



Vehicle Exemption: Protects the value of one motor vehicle within a statutory limit.



Wage and Benefit Exemptions: Safeguards wages, workers’ compensation, and Social Security benefits.

These exemptions aim to help filers retain essential items and regain financial stability after bankruptcy.
Do you lose retirement accounts in bankruptcies?
Retirement accounts are typically protected in bankruptcy through exemptions under federal and Michigan laws. Accounts like 401(k)s, IRAs, and pension plans are usually exempt from creditors. Traditional and Roth IRAs have a federal exemption limit (currently over $1.5 million), while qualified ERISA accounts are fully protected. Proper filing protects these items.
Is unemployment compensation exempt under Michigan bankruptcy laws?
Unemployment compensation is generally exempt under Michigan bankruptcy laws. State and federal exemptions protect these benefits, so that they are not included in the bankruptcy estate or seized by creditors. Accurate reporting and proper documentation are essential to safeguard these funds during bankruptcy proceedings.
How much equity can I have in my home and still file Chapter 7 in Michigan?
Under Michigan’s homestead exemption, filers can protect up to $40,475 in equity for a primary residence. For married couples filing jointly, this amount increases to $60,725. Michigan residents aged 65 or older or those with disabilities may qualify for additional protections. These limits allow filers to safeguard their homes during Chapter 7 bankruptcy while liquidating other non-exempt assets to repay creditors.
Can you keep your car in Chapter 7 in Michigan?
Yes, Michigan’s vehicle exemption allows filers to protect up to $3,775 of equity in a single motor vehicle. If the filer owes money on the car loan and the equity is below this limit, they can often keep the vehicle by reaffirming the loan or continuing payments. For cars with higher equity, the filer may need to negotiate with the trustee or use other exemptions to cover the excess value and retain the vehicle.

How To Stop Wage Garnishment in California

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If wage garnishment makes it difficult to afford your essential living costs, you can request a Claim of Exemption from the court to either lower or eliminate the garnishment. This process demonstrates that the withheld amount jeopardizes your ability to meet essential needs.

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FAQs About Stopping Wage Garnishment in CA

Can You Stop Garnishment Once It Starts?
Yes, by filing a Claim of Exemption, negotiating with creditors, or filing for bankruptcy.
What Funds Are Exempt From Wage Garnishment?
Social Security, disability benefits, and public assistance are fully exempt.
How Much of My Wages Can Be Garnished?
For most debts, up to 25% of disposable income can be garnished. For child or spousal support, garnishment can reach 50%-60%.
What Happens if I File for Bankruptcy?
Bankruptcy imposes an automatic stay, immediately stopping wage garnishment.
How Long Does It Take to Stop Garnishment?
•Filing a Claim of Exemption: 10-30 days.

•Bankruptcy: Immediate upon filing.
What Are the Common Mistakes to Avoid When Filing a Claim of Exemption?
Avoiding common errors when filing a Claim of Exemption ensures your request is not delayed or denied:


Incomplete Forms: Ensure all sections of WG-006 and WG-007/EJ-165 are filled out correctly.

Missing Supporting Documents: Include pay stubs, bills, and a detailed financial statement to substantiate your claim.

Late Filing: Submit your forms promptly to the levying officer, usually within 10 days of receiving the garnishment notice.

Failing to Prepare for Opposition: Be ready for a court hearing if the creditor disputes your claim.


Attention to detail and prompt action can significantly improve the likelihood of approval.
Can a Wage Garnishment Be Reinstated After Being Stopped?
Yes, wage garnishment can be reinstated if:





The Debt Remains Unpaid: If the original debt isn’t resolved after a temporary stoppage.



A New Judgment Is Secured: Creditors may file for a new judgment after correcting procedural errors or reapplying.



Bankruptcy Protection Ends: Once a Chapter 13 repayment plan is complete, creditors may resume garnishment for debts not fully discharged.

To prevent reinstatement, resolve the debt entirely or maintain compliance with bankruptcy repayment terms.

Can Debt Consolidation Stop Wage Garnishment in California?

Posted on by Kostopoulos Bankruptcy Law

Wage garnishment is a stressful situation where a portion of your paycheck is withheld to repay a debt. For consumer debt such as credit card, medical, or personal loan debt, the employer may garnish up to 25% of disposable earnings or exceeding 30 times the federal minimum wage.

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Does Bankruptcy Stop Wage Garnishments in Michigan?

Posted on by Kostopoulos Bankruptcy Law

Creditors will often engage in aggressive tactics to communicate with you regarding debt, including calling you at home and contacting you at work. However, there may come a time when a creditor takes legal action that could have a significant impact on your finances and future. By going through the proper process, a company can get an order from a Michigan court that takes part of your earnings to satisfy the debt you owe. The matter is termed wage garnishments in Detroit, and it is one of many options a creditor has to get paid.

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