Michigan Fair Debt Consumer Guide
Learn about your legal rights when facing Debt Collector Problems. Research the applicable laws that could help protect you when a debt collector is attempting to seize your assets, garnish your wages or continue collection of a debt that is outside Michigan's Statutes Of Limitations. Michigan phone recording laws could assist you in gathering proof of the debt collector's illegal tactics; find out whether recording your debt collector's phone conversation is permitted in your state.
The Michigan Fair Debt Collection Consumer Practices Guide summarizes Michigan's laws on wage garnishment, property and asset seizures and state statutes of limitations on debt collection and could provide the ammunition you need to stop or limit creditors and collectors from harassing you, garnishing your wages or bank accounts, and from seizing your property through liens, thus limiting your overall financial exposure.
This Guide does not include information concerning the FTC's Credit Practices Rule, state consumer protection laws or information regarding exemption provisions found in laws other than the state's general exemption laws and is not intended to substitute for the advice of an attorney.
Michigan Consumer Debt Exemption Laws
If a debt collector threatens to seize your property or your assets, you could be protected under Michigan’s Consumer Debt Exemption Laws. Read the summarized information below to learn how to protect what you own and what you cannot protect from seizure. You could significantly strengthen your bargaining position with debt collectors by knowing your rights under Michigan Debt Exemption Law!
The State of Michigan has not opted out of federal bankruptcy exemption laws.
Wages: Michigan Laws Annotated § 600.5311 (Michigan Statutes Annotated § 27A.5311)
Homestead: Michigan Constitution article X, § 3; Michigan Laws Annotated §§ 559.214,600.6022, .6023, .6024, and .6027 (Michigan Statutes Annotated §§ 26.50(214), 27A.6022, .6023, .6024, and .6027).
Tangible personal property: Michigan Constitution article X, § 3; Michigan
Laws Annotated § 600.6023 (Michigan Statutes Annotated § 27A.6023).
Benefits, retirement plans, insurance, judgments, and other intangibles:
Michigan Laws Annotated § 600.6023.
Michigan Debt Statutes of Limitation
Your debt may have expired under Michigan’s Statutes of Limitations, and may be considered uncollectible. Read the summary below to see the length of time certain types of debt can continue to be collected under the Michigan Debt Statutes of Limitations, don’t let a collector threaten to take you to court over an expired debt.
Michigan Debt Statutes of Limitation
Breach of Contract: 6 years, (MCL 600.5807(8).
Breach of Contract for Sale of goods under the UCC: 4 years: including deficiency actions following repossession and sale of goods subject to a security interest, (MCL 440.2725(1).
Judgments: 10 years, but are renewable by action for another 10 years, MCL.600.5809(3).
NOTE: Another state's limitation period may apply check statutes carefully.
Michigan Wage Garnishment Procedural Requirements
Wage garnishment doesn’t mean a debt collector or creditor is entitled to take all your money. Under Michigan’s Wage Garnishment Laws, there are limits and protections on just how much can be taken from your paycheck.
Read the summary below to learn your garnishment rights under Michigan law.
Michigan Wage Garnishment Procedural Requirements
The clerk of the court that entered the judgment shall issue a writ of garnishment if the plaintiff makes and files a Statuteement verified in the manner provided in Rule 2.114(A) Statuting (1) that a judgment has been entered against the defendant and remains unsatisfied, (2) the amount of the judgment and the amount remaining unpaid, and (3) that the affiant knows or has good reason to believe that a named person has control of property belonging to the defendant, a named person is indebted to the defendant, or a named person is obligated to make periodic payments to the defendant.
The writ of garnishment must have attached or must include a copy of the verified Statuteement and must include information that will permit the garnishee to identify the defendant, such as the defendant's address, social security number, employer number, or account number, if known. The writ shall include the date on which it was issued and the last day by which it must be served to be valid, which is 91 days after it was issued.
The writ shall direct the garnishee to: served a copy of the writ on the defendant; within 14 days after the service of the writ, file with the court clerk a verified disclosure indicating the garnishee's liability to the defendant and mail or deliver a copy to the plaintiff and the defendant; deliver no tangible or intangible property to the defendant, unless allowed by Statute or court rule; pay no obligation to the defendant, unless allowed by Statute or court rule; and in the discretion of the court, order the garnishee either to make all payments directly to the plaintiff or send the funds to the court in the manner specified in the writ.
The writ shall direct the defendant to refrain from disposing of any negotiable instrument representing a debt of the garnishee or any negotiable interest of title representing property in which the defendant claims an interest held in the possession or control of the garnishee. The writ shall inform the defendant that unless the defendant files objections within 14 days after the service of the writ on the defendant, without further notice the property or debt held pursuant to the garnishment may be applied to the satisfaction of the plaintiff's judgment and periodic payments due to the defendant may be withheld for as long as 91 days after the issuance of the writ and in the discretion of the court paid directly to the plaintiff. Mich. Court R. 3.101.
The plaintiff shall serve the writ of garnishment, a copy of the writ for the defendant, the disclosure form, and any applicable fees, on the garnishee within 91 days after the date the writ was issued in the manner provided for the service of a summons and complaint. The garnishee shall within 7 days after being served with the writ deliver a copy of the writ to the defendant or mail a copy to the defendant at the defendant's last known address by first class mail. Mich. Court R. 3.101.
Within 14 days after service of disclosure, the plaintiff may serve the garnishee with written interrogatories or notice the deposition of the garnishee. The discovery rules apply to garnishment proceedings. If the garnishee is not indebted to the defendant, does not hold any property subject to garnishment, and is not the defendant's employer, the plaintiff is not entitled to recover the costs of that garnishment. Mich. Court R. 3.101.
A pleading may be verified by oath or affirmation of the party or of someone having knowledge of the facts pleaded or by including the following signed and dated declaration: "I declare that the Statuteements above are true to the best of my information, knowledge, and belief." Every pleading of a party represented by an attorney shall be signed by at least one attorney of record. A party who is not represented by an attorney must sign the pleading. Mich. Court R. 2.114.
Interest Rate at which Judgments Accrue Judgments bear interest from date of filing complaint at 6% until June 1, 1980 and 12% thereafter, or if founded on written instrument, at rate therein provided, but not exceeding 7% until June 1, 1980 and 13% thereafter.
For complaints filed on or after Jan. 1, 1987, interest accrues from date of filing complaint at rate certified by Statutee treasurer semiannually as 1% plus average rate on five year U.S. Treasury Notes. For claims filed on or after Oct. 1, 1986, interest shall not be allowed on "future damages" defined as personal injury damages accruing after damage findings are made. Mich. Comp. Laws Ann. __ 600.6013, 6301.
Michigan (Debt Collector) Call Recording Law
Under Michigan State and Federal Call Recording Laws, you could record the actual phone conversation with a debt collector in your efforts to stop debt collectors from calling! Illinois is a two party consent state, meaning you need the permission of all parties that are on the call to record the conversation. Thus you DO need a debt collector’s permission before you can record your phone conversation with him (or her) in the state of Michigan.
Research and find additional information about Federal Call Recording Laws and learn what call recording procedures are legal in other states.