Legal Question in Credit and Debt Law in Michigan

Re: Credit Card Collections

Unless you work out a settlement with them, they will get a judgment against you. With that judgment, they can garnish your wages up to a certain percentage until the debt is paid off. They can also garnish your income tax refund each year until paid off. They can place liens on any assets you own, such as a house, boat, etc., to protect themselves, but they will likely just garnish you, assuming you have a regular job.

If you can afford at all to negotiate a lump sum to pay them right now, they will cut the debt down and you can get it resolved within a month. Just make sure you read over any agreement they give you, and perhaps have an attorney also review it, so you know what you are getting into - if you do work out a settle.

Re: Credit Card Collections

If the collector sues and proves that you owe the money claimed, a judgment can be entered for that amount plus costs. The collector can then attempt to collect from you on the judgment but only under the provisions of the Fair Debt Collection Practices Acts and this time with the ability to attach assets such as your car unless you use it for work, and garnish your wages if you net more than $125 week, or intercept your Michigan income tax returns.

However, before a judgment is entered and if the creditor will not agree to accept a lesser amount each week or month, then you can petition the court for installment payments using a "petition for installment payments" which is a form (numbered MC15) that you can obtain at the website for the Michigan courts supreme court administrative office (SCAO).

If you do get garnished, you can file an "objection to garnishment and notice of hearing", which is form MC49 providing for objection on the basis of exempt funds or property, pending bankruptcy, barred by installment payment order, etc.