Michigan Debt Relief

Michigan state Credit Card Debt law has a 6-year Statute of Limitations (SOL), or time limit, for lawsuits on open-ended accounts. This means creditors are required to file suit for outstanding Credit Card Debt within six years of the last missed payment. Any subsequent partial payments restart the SOL for another 6 years. Once a summons on debt is received, the debtor has 21 days to respond with an answer, unless the summons stipulates otherwise. The best way to send the answer is by certified mail.

Judgment Enforcement

Creditors are given 10 years to collect judgments, which accrue interest at one of the highest rates in the country, 20% per year. Homestead exemptions of up to $3,500 are allowed. Personal and real property may be levied and wages may be garnished in order to satisfy a judgment.

Wages may only be garnished up to 25% of the debtor’s disposable income, except for those making at or near minimum wage. In such cases, no wages may be garnished. A writ to garnish wages is effective for 91 days and must be renewed to stay in force. In addition, courts have power to grant an “installment payment order,” suspending wage garnishments as long as payments are made to the creditor. The order will not prevent garnishment of bank accounts.

Debt Settlement

Debt Settlement is a viable option for those facing a debt judgment. Instead of being forced to pay by the court’s schedule, debtors can negotiate with creditors for a workable payment plan, free of interest. This reduces the stress and frustration in a court battle and helps consumers avoid bankruptcy.