How to Stop Wage Garnishment in Michigan

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.

What Is Wage Garnishment in Michigan?

Wage garnishment is a legal procedure that permits creditors to directly withdraw funds from your paycheck to settle outstanding debts. In Michigan, this typically occurs after a creditor obtains a court judgment against you. Familiarizing yourself with Michigan’s garnishment laws can help you understand your rights and protections.

How Wage Garnishment Works

A creditor sues you for an unpaid debt and wins a court judgment.
The creditor obtains a Writ of Garnishment, directing your employer to withhold a portion of your paycheck.
The employer sends the garnished wages to the creditor until the debt is fully paid.

Types of Wage Garnishment in Michigan

Type of Debt	Maximum Wage Garnishment Percentage
Consumer Debt (Credit Cards, Medical Bills, Personal Loans)	25% of disposable earnings
Child Support or Alimony	Up to 50% if supporting another dependent, 60% if not
Federal Student Loans	15% of disposable earnings
Unpaid Taxes	IRS determines amount based on dependents and income

Certain income sources—such as Social Security, social security income, veterans’ benefits, unemployment compensation, and workers’ compensation—are exempt from wage garnishment under Michigan law.

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What Are the Different Types of Wage Garnishment in Michigan?

Michigan recognizes two types of wage garnishment: periodic garnishments, which apply to recurring income like wages, and non-periodic garnishments, which apply to one-time payments such as bank accounts and tax refunds. Understanding Michigan garnishment laws can help you navigate the complexities of both periodic and non-periodic garnishments.

Periodic Garnishment

Applies to wages, salaries, and other recurring income.
Continues until the debt is fully paid or the garnishment order expires.
Can take up to 25% of disposable earnings per Michigan law.

Non-Periodic Garnishment

Applies to bank accounts, state tax refunds, and other lump-sum payments.
Only affects a single transaction, but creditors may refile as necessary.
Can result in the full balance of an account being garnished if it exceeds the debt owed.

Ways to Stop Wage Garnishment in Michigan

There are several legal methods to stop or reduce wage garnishment in Michigan. Here are the most effective options:

1. File an Objection with the Court

If you receive a garnishment notice, you have 14 days to file an objection with the court.

Steps to Object to Wage Garnishment in Michigan

Review the Garnishment Notice – Understanding the wage garnishment process is essential to effectively objecting to a garnishment order. Ensure the amount is correct and confirm whether exemptions apply.
Complete the Objection to Garnishment Form – Obtain the official form from the court or a Michigan legal aid website.
Submit the Form to the Court – Ensure you file the objection within 14 days of receiving the garnishment notice.

Attend the Hearing – Present evidence of financial hardship or legal exemptions.
Await the Judge’s Decision – If approved, the garnishment may be reduced, delayed, or dismissed.

Pro Tip:* If the court denies your objection, consider negotiating with your creditor or filing for bankruptcy to stop the garnishment.*

2. Negotiate a Settlement or Repayment Plan

Many creditors prefer a voluntary payment arrangement rather than the hassle of wage garnishment.

Propose Smaller Payments – Offer an amount you can afford that is less than the garnished amount.
Negotiate a Lump Sum Settlement – Creditors may accept less than the total debt if you offer a lump-sum payment.
Get the Agreement in Writing – Ensure that all terms are documented to avoid future disputes.

Pro Tip: If successful, request that the garnishment be officially dismissed through a court order.

3. File for Bankruptcy to Stop Wage Garnishment Immediately

Filing for bankruptcy initiates an automatic stay, which immediately stops all collection efforts, including wage garnishments.

How Chapter 7 and Chapter 13 Bankruptcy Affect Wage Garnishment

Bankruptcy Type	How It Stops Garnishment	Best For
Chapter 7 Bankruptcy	Immediately eliminates most unsecured debts and stops garnishment.	People with overwhelming debts and little income.
Chapter 13 Bankruptcy	Creates a structured repayment plan (3–5 years) and stops garnishment.	Individuals with steady income who want to keep assets.

Exceptions: Child support, alimony, and certain tax debts are NOT dischargeable in bankruptcy and may continue even after filing.

How Long Does It Take to Stop Wage Garnishment After Filing for Bankruptcy in Michigan?

Notify Your Employer and Creditors: Once your bankruptcy petition is filed, your attorney will notify your employer and the creditors of the automatic stay. Garnishment Stops Immediately: Creditors must stop wage deductions immediately.

Can Wage Garnishment Impact Your Credit Score?

Wage garnishment itself does not appear on your credit report, but the court judgment leading to it can severely impact your credit score.

A court judgment remains on your credit report for up to seven years.
Missed payments before the garnishment can lower your score significantly.
Resolving the debt through settlement or bankruptcy may improve your credit over time.

Pro Tip: If a judgment appears on your credit report in error, you can dispute it with the credit bureaus under the Fair Credit Reporting Act (FCRA).

Can an Employer Fire You for Wage Garnishment?

Under federal law (Consumer Credit Protection Act, 15 U.S.C. §1674), an employer cannot fire you over a single wage garnishment order. However:

If you have multiple garnishments, your employer may terminate your employment.
Employers must comply with wage garnishment orders, or they risk legal penalties.
If you believe you were wrongfully terminated due to garnishment, you can file a complaint with the Michigan Department of Civil Rights.

Pro Tip: If you face employment issues due to garnishment, consult a Michigan employment attorney to explore legal protections.

Can Your Michigan State Tax Refund Be Garnished?

Can Creditors Take My Michigan State Tax Refund?

Yes, Michigan allows garnishment of state tax refunds, including michigan income tax refunds, for unpaid debts, child support, and government fines.

Who Can Garnish Your Michigan Tax Refund?

State Agencies – The Michigan Department of Treasury can intercept refunds for unpaid taxes or fines.
Private Creditors – If a creditor wins a judgment, they can file a Writ of Garnishment to seize state refunds.
Child Support & Student Loans – Federal and state agencies can garnish refunds for past-due obligations.

How to Prevent Tax Refund Garnishment

Settle Debts Before Filing – Paying debts before tax season prevents garnishment.
File an Objection – Debtors have 14 days to challenge a garnishment order in court.
Check for Exemptions – Certain low-income individuals may qualify for exemptions under Michigan debt relief laws.

What Happens If You Have Multiple Wage Garnishments?

Can More Than One Creditor Garnish My Wages in Michigan?

Yes, multiple creditors can file garnishment orders, but Michigan law limits total wage deductions to 25% of disposable earnings.

How Michigan Handles Multiple Garnishments

First Creditor Gets Priority – The first creditor to file a writ of garnishment receives payment based on the debtor’s income within each pay period until the debt is fully paid.
Other Creditors Must Wait – Additional creditors must wait in line until prior debts are resolved.
Certain Debts Override Limits – Child support and federal tax garnishments can exceed 25%, reducing payments to other creditors.

How to Prevent Multiple Garnishments

Set Up Payment Plans – Proactively negotiating reduces the need for new garnishments.
File for Bankruptcy – Chapter 7 or Chapter 13 bankruptcy stops all wage garnishments immediately.

Take Control of Your Finances Today

Wage garnishment does not have to control your financial future. Whether through filing an objection, negotiating with creditors, or seeking bankruptcy protection, you have options.

Call Kostopoulos Bankruptcy Law at (877) 586-1829 for a free no-obligation consultation and take the first step toward stopping wage garnishment in Michigan today.

Resources & References

Michigan Courts – Wage Garnishment Rules
https://www.courts.michigan.gov

U.S. Department of Labor – Wage Garnishment Protections
https://www.dol.gov

Consumer Financial Protection Bureau – Debt Collection FAQs
https://www.consumerfinance.gov

U.S. Courts – Bankruptcy Overview
https://www.uscourts.gov

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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.