How to Stop Wage Garnishment in Michigan

Facing wage garnishment can be overwhelming, but Michigan residents have options to protect their income. You might be wondering: How can I stop wage garnishment in Michigan?

To stop wage garnishment in Michigan, file an objection with the court within 14 days of receiving the garnishment notice. You can also negotiate with creditors for a repayment plan or file for bankruptcy to halt wage deductions and protect your income.

With decades of experience helping Michigan residents, I’ve guided countless individuals to regain financial control. Let’s explore every aspect of wage garnishment, from how it works to how to stop it.

What Are My Options For Stopping Wage Garnishment?

Wage garnishment can be stopped or reduced through various methods. Here are your primary options:

1. File for Bankruptcy

Filing for bankruptcy triggers an automatic stay, which halts all collection activities, including wage garnishments.
Chapter 7 can discharge certain debts entirely, while Chapter 13 creates a repayment plan to manage your debts.
Consult with a bankruptcy attorney to determine the best option for your financial situation.

2. Negotiate with Creditors

Creditors are often willing to work with you to resolve the debt without garnishment.
Options include:
- Negotiating a repayment plan.
- Settling the debt for a lower amount.
Document any agreements in writing to ensure clarity and enforceability.

3. Claim Exemptions

Certain incomes, like Social Security or veterans’ benefits, are exempt from garnishment.
To protect exempt funds, file a Claim of Exemption with the court that issued the garnishment order.
Provide supporting evidence, such as pay stubs or proof of exempt income, to strengthen your claim.

4. Explore Additional Options

Consolidate or Refinance Debt: Combine multiple debts into a single loan with lower interest rates.
Credit Counseling Services: Work with a certified counselor to create a debt management plan.
Nonprofit Assistance: Seek financial support from nonprofit organizations that offer debt relief or emergency aid.

What Is the New Michigan Garnishment Law?

The Michigan garnishment law, updated on October 1, 2015, ensures clearer communication and stronger debtor protections. Key changes include:

Duration: Periodic garnishments now remain in effect until the judgment is fully paid.
Balance Statements: Creditors must provide a balance update to the debtor and garnishee every six months.
Release Requirements: Garnishments must be released within 21 days of full payment.
Payment Order: Garnishments are paid in the order received by the employer.

How Can I Stop a Wage Garnishment Immediately in Michigan?

To stop wage garnishment immediately in Michigan, file a Motion for Installment Payments or consider bankruptcy, which triggers an automatic stay. Objections to garnishment or negotiating with creditors can also halt the process.

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.

How Different Types of Bankruptcy Affect Wage Garnishment

Both Chapter 7 and Chapter 13 bankruptcy stop wage garnishment immediately through an automatic stay. Chapter 7 can discharge eligible debts entirely, while Chapter 13 allows you to repay debts over time through a structured plan, preventing garnishment from restarting.

How Chapter 7 Affects Wage Garnishment

Immediate Relief: Filing for Chapter 7 triggers an automatic stay, which halts all wage garnishments, lawsuits, and creditor actions.
Debt Discharge: Unsecured debts like credit cards, medical bills, and personal loans may be discharged, permanently eliminating the garnishment.
Exceptions: Garnishment for child support, alimony, and certain tax debts may continue under Chapter 7, as these obligations are non-dischargeable.
Timeframe: Chapter 7 typically resolves within 3–6 months, offering a clean slate for eligible individuals.

How Chapter 13 Affects Wage Garnishment

Structured Repayment: Chapter 13 creates a court-approved repayment plan, allowing you to pay off debts over 3–5 years without ongoing garnishment.
Automatic Stay: Garnishments stop immediately upon filing, including those for secured debts like car loans.
Retain Assets: Unlike Chapter 7, Chapter 13 lets you keep valuable assets, such as your home, while reorganizing your finances.
Flexibility: After completing the repayment plan, remaining eligible debts may be discharged, ensuring garnishments do not restart.

Which Type of Bankruptcy is Right for You?

Choose Chapter 7 if:
- You have significant unsecured debt that qualifies for discharge.
- You need immediate relief without a repayment plan.
Choose Chapter 13 if:
- You have a steady income and want to keep secured assets.
- You need a structured plan to repay debts over time.

How to Negotiate with Creditors to Stop Wage Garnishment

Negotiating with creditors can be an effective way to stop wage garnishment. Start by contacting your creditor to discuss a repayment plan or settlement.

Propose Smaller Payments: Offer a payment amount you can afford that is less than the garnished amount. Creditors often prefer this to the hassle of continued garnishment.
Negotiate a Settlement: You may be able to settle the debt for a reduced amount, agreeing to pay a lump sum or structured installments.
Document the Agreement: Ensure all terms are written and signed by both parties to avoid misunderstandings.

Taking proactive steps can halt garnishments and help you regain financial control.

How to File a Claim of Exemption for Wage Garnishment in Michigan

If your income qualifies as exempt from wage garnishment, you can protect it by filing a Claim of Exemption. Here’s what you need to know:

Steps to File a Claim of Exemption

Complete the Required Forms
- Obtain the official Claim of Exemption form from the court.
- Include any required financial statements that outline your income and expenses.
Gather Necessary Documents
- Notice of Wage Garnishment.
- Recent pay stubs.
- List of monthly expenses.
- Proof of dependents (e.g., birth certificates or tax returns).
File the Forms with the Court Clerk
- Submit the original and one copy of the forms to the clerk of the court in the county where the garnishment originated.
- Pay any applicable filing fees, if required.
Mail Copies to Relevant Parties
- Send copies of the filed forms to:
  - The judgment creditor.
  - The sheriff or officer enforcing the garnishment.
  - Any other relevant parties.
Attend the Hearing
- If a hearing is scheduled, present your case to the judge.
- Bring all supporting documents to demonstrate why your income qualifies as exempt.
Await the Judge’s Decision
- The court will decide if you qualify for the exemption.
- If approved, garnishment may stop or be reduced.

Additional Tips

Negotiate with the Creditor: Before or during the process, try discussing a settlement or repayment plan to avoid garnishment altogether.
Seek Legal Advice: A qualified attorney can help you navigate the exemption process and strengthen your case.

What Are Wage Garnishment Limits and Exemptions in Michigan?

Michigan law places strict limits on how much of your income creditors can garnish, while also protecting specific types of income from garnishment. Here’s what you need to know:

What Is the Maximum Amount That Can Be Garnished From Your Paycheck in Michigan?

In Michigan, the maximum wage garnishment is the lesser of 25% of your disposable income or the amount by which your weekly earnings exceed 30 times the federal minimum wage, currently $217.50. Income below this threshold cannot be garnished.

Certain debts allow for higher garnishment percentages:
- Child Support or Alimony: Up to 50% of disposable income if you support another dependent, or 60% if you do not.
- Federal Student Loans: Garnishment up to 15% of disposable earnings without a court order.
- Unpaid Taxes: Garnishment percentages vary based on exemptions but can exceed standard limits.

What Are Disposable Earnings?

Disposable earnings refer to your take-home pay after legally required deductions, such as taxes. Deductions for voluntary programs, like retirement contributions, are not considered.

What Types of Income Are Protected from Wage Garnishment in Michigan?

Certain funds are exempt from garnishment in Michigan, including Social Security, veterans’ benefits, unemployment benefits, and state welfare payments.

Protected Income Sources:

Certain types of income are fully or partially exempt from garnishment under Michigan and federal law:

Federal Benefits:
- Social Security (retirement, disability, and SSI up to twice the monthly benefit).
- Veterans’ benefits.
- Federal retirement and disability payments.
State Assistance:
- Family Independence Program (FIP).
- Food Assistance Program (FAP).
- State disability aid.
Other Exemptions:
- Workers’ compensation.
- Unemployment benefits.
- Life insurance payouts intended for specific beneficiaries.
- Certain pensions covered by ERISA.

Exceptions and Best Practices:

Federal benefits like Social Security may be garnished for federal student loans, unpaid taxes, or child support.
Pension income loses its protection once deposited into a bank account.
To safeguard exempt funds, keep them in a separate account used exclusively for these deposits, making it easier to prove their exempt status.

Refer to the Michigan Courts for a complete list of exemptions.

How Do I File an Objection to Stop Garnishment?

To object to wage garnishment in Michigan, complete the Objection to Garnishment form, file it with the court that issued the garnishment within 14 days, and attend the scheduled hearing to present your case.

Steps to Object to Wage Garnishment

Review the Garnishment Notice
- Carefully examine the garnishment notice for errors in amounts, payment terms, or other discrepancies.
- Confirm the source of the garnishment and ensure it aligns with Michigan’s wage garnishment laws.
Complete the Objection to Garnishment Form
- Obtain the official form from the court or use online resources provided by Michigan legal aid.
- Clearly state your reason for objecting, such as financial hardship, errors in calculations, or exemptions applicable to your income.
File the Objection with the Court
- Submit the completed form to the court that issued the garnishment order within 14 days of receiving the notice.
- Include supporting documents like pay stubs, proof of exempt income, or other relevant records.
Attend the Court Hearing
- The court will schedule a hearing to review your objection.
- Bring all necessary evidence to support your claim, such as financial records or proof of errors in the garnishment order.
Await the Court’s Decision
- If the court approves your objection, the garnishment may be reduced, delayed, or dismissed.
- If denied, explore alternative options to stop or manage the garnishment.

Additional Options if Your Objection is Denied

Negotiate with the Creditor: Discuss a repayment plan to halt further garnishments.
File for Bankruptcy: Consider Chapter 7 or Chapter 13 bankruptcy, which triggers an automatic stay to stop garnishments.
Pay the Debt in Full: Paying off the debt within 21 days of judgment prevents further garnishment.
Protect Exempt Funds: Deposit exempt income into a separate account to shield it from garnishment.

Take Control of Your Finances Today

Stopping wage garnishment is possible with the right legal tools and strategies. Whether filing a Motion for Installment Payments, objecting to garnishment, or seeking bankruptcy relief, you have options. For personalized assistance, contact Kostopoulos Bankruptcy Law at (877) 969-7482 today for a free consultation.

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FAQs About Stopping Wage Garnishment in Michigan

Where Can I Hide Money From Garnishment?

It is illegal to hide assets from garnishment. Instead, use legal protections, such as exemptions, to shield your funds.

How Long Does a Garnishment Last in Michigan?

A garnishment lasts until the debt is fully paid or the court issues an order to stop it. Periodic garnishments, like wage deductions, remain active unless contested or resolved.

How Many Times Can They Garnish Your Wages?

Creditors can issue multiple garnishments, but only one creditor can garnish your wages at a time up to the legal limit.

Can You Be Garnished Without Being Served?

No, creditors must serve you with a garnishment notice. If you were not served, you could file a Motion to Set Aside the garnishment.

What Happens After a Default Judgment Is Issued in Michigan?

After a default judgment, creditors can file for a writ of garnishment to collect the debt. This includes garnishing wages, bank accounts, or tax refunds.

Can I Settle After Garnishment?

Yes, you can negotiate a settlement with your creditor even after garnishment begins. Be sure to document the agreement to stop further garnishment.

How Do I Get Rid of a Garnishment in Michigan?

To get rid of a garnishment, file a Motion for Installment Payments, pay the debt in full, or file for bankruptcy.

How Do I Delay a Garnishment?

Filing an objection or requesting a hearing can delay garnishment temporarily while the court reviews your case.

Can You Negotiate After Wage Garnishment?

Yes, negotiating with your creditor after garnishment can lead to an agreement that stops future deductions.

What Happens if You Lose Your Job While Your Wages Are Being Garnished?

If you lose your job, garnishment will stop temporarily, but creditors may pursue other income sources or reapply the garnishment when you find new employment.