Michigan Laws on Wage Garnishments, Statute of Limitations on Debt and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: Federal law applies
MAXIMUM INTEREST RATE: Legal: 5% Judgment: About 7% (changes annually)
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit cards): 6 years
Written Contract: 6 years Domestic Judgment: 10 (renewable) Foreign Judgment: 10 yearsBAD CHECK LAW DAMAGES: Twice the amount of check, but cannot exceed $500
MICHIGAN BANKRUPTCY PROPERTY EXEMPTIONS (Michigan Compiled Laws Annotated):
Can use either the state exemptions below or the federal exemptions
The State of Michigan has exempted the property and income below from seizure by the bankruptcy court to pay creditors:
Real property: Real estate to $3,500; property cannot exceed one lot in city or town or 40 acres if rural [559.214, 600.6023(1)(h), 600.6023(3) and 600.6027]
Personal property: Appliances, furniture and household goods, books, and utensils up to $1,000 total [600.6023(1)(b)]; clothing and family pictures, unlimited amount, and food and fuel to last six months [600.6023(1)(a)]; arms and equipment required for military use, unlimited amount [600.6023(1)(a)]; building and loan association shares up to $1,000 par value in lieu of real estate exemption [600.6023(1)(g)]; burial plots or church pew, unlimited amount [600.6023(1)(c)]; tools, implements, stock, materials, team, apparatus, motor vehicle, horse and harness used in a business up to $1,000 total [600.6023(1)(e)]; two cows, 100 hens, 5 roosters, 10 sheep, 5 swine and feed to last six months [600.6023(1)(d)]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Insurance / Annuities: Fraternal society benefits, unlimited amount [500.8181]; disability, mutual life or health insurance benefits, unlimited amount [600.6023(1)(f)]; life, endowment or annuity proceeds, but only if policy prohibits proceeds from being used to pay creditors, unlimited amount [500.4054]
Pensions / Retirement Plans: Firefighters and police officers, unlimited amount [38.559(6)]; retirement benefits and IRAs [600.6023(1)(k)]; legislators, unlimited amount [38.1057]; state employees, unlimited amount [38.40]; public school employees, unlimited amount [38.1346]
Public Benefits / Entitlements: Welfare benefits, unlimited amt [400.63]; aid to families with dependent children, unlimited amt [18.362]; unemployment compensation, unlimited amt [421.30]; workers compensation, unlimited amount [418.821]; crime victims compensation, unlimited amt [18.362]; veterans benefits for war veterans, unlimited amt [35.926, 35.977 and 35.1027]
Wages: 60% of earned but unpaid wages for head of household; otherwise 40% [600.5311]
Miscellaneous: Business partnership property, unlimited amount [449.25]
