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If you’ve recently received notice that your wages are being garnished in Michigan, you’re probably feeling overwhelmed and unsure about what to do next. Wage garnishment can have a significant impact on your financial stability, making it harder to keep up with daily expenses. Understanding the process, why it happens, and what you can do to stop it is essential to regaining control of your finances.
What Is Wage Garnishment?
Wage garnishment is a legal process in which a creditor can collect money directly from your paycheck or bank account to satisfy a debt. This typically happens after a creditor sues you and obtains a court judgment stating that you owe a certain amount of money. Once the creditor secures a judgment, they can request an order of garnishment, which directs your employer or bank to withhold a portion of your income and send it directly to them.
Why Do People Get Garnished?
There are several reasons why someone might be subjected to wage garnishment in Michigan. Common causes include:
- Unpaid Credit Card Debt – If you have fallen behind on payments, creditors can take legal action to collect the balance.
- Medical Bills – Unpaid medical bills can lead to lawsuits and eventual garnishment.
- Personal Loans – Defaulting on personal loans can lead to collection actions and court judgments.
- Unpaid Taxes – The IRS and the State of Michigan can garnish your wages for unpaid tax debts, often without requiring a court order.
- Student Loans – If federal student loans go into default, your wages can be garnished without a court judgment.
- Child Support and Alimony – If you are behind on child support or spousal support, garnishment can be used to enforce payment.
What Can They Garnish?
In Michigan, creditors can garnish wages, bank accounts, and even tax refunds in some cases. However, there are limits on how much they can take. Under Michigan law:
- Up to 25% of your disposable earnings (your income after required deductions like taxes) can be garnished.
- If you earn less than 30 times the federal minimum wage per week, your wages may be exempt from garnishment.
- Some income sources, such as Social Security benefits, workers’ compensation, and unemployment benefits, are typically protected from garnishment.
How to Stop Wage Garnishment
If you are being garnished, there are steps you can take to stop or reduce the impact:
- Negotiate with the Creditor – Some creditors may be willing to set up a voluntary payment plan instead of garnishing your wages.
- File a Motion for Installment Payments – Michigan allows debtors to request an installment payment plan through the court. If approved, this can stop garnishment as long as payments are made as scheduled.
- Challenge the Garnishment – If you believe the garnishment is incorrect or that the creditor did not follow proper legal procedures, you may be able to dispute it in court.
- Seek Legal Assistance – A Financial Crisis Attorney in Michigan can help you explore your options and determine the best course of action to stop garnishment.
- File for Bankruptcy – If you have overwhelming debt, filing for Chapter 7 or Chapter 13 bankruptcy can put an automatic stay on all collection efforts, including wage garnishment.
Speak with a Financial Crisis Attorney Today
If you are facing wage garnishment, the best step you can take is to sit down with an experienced Financial Crisis Attorney in Michigan. At Sigal Law Firm, we help individuals assess their financial situation and find the best solution to stop garnishment and get back on track. Whether it’s negotiating a settlement, filing a motion for installment payments, or exploring bankruptcy options, we can guide you through the process and protect your rights.
Don’t wait until your finances spiral out of control—contact Sigal Law Firm today to schedule a consultation and take the first step toward financial relief.
