Legal Question in Credit and Debt Law in Michigan
Garnishment: from unemployment funds
Hello and thank you.
I am rcvn' unemployment. I placed my check in the bank. The funds are being held for garnishment. I can prove the funds are from unemployment and are not comingling with other funds. I had objecting hearing today. Judge did not know of a law that states unemployment is exempt from garnishment.
Is there a law that states unemployment benefits can not be garnished to pay a judgement for an old credit card account?
2 Answers from Attorneys
Re: Garnishment: from unemployment funds
Yes, I believe unemployment funds are exempt. Most of the exemptions are listed right on the writ of garnishment form itself. Take a look. If you can prove that the funds came from a direct deposit of your unemployment compensation, you may be able to convince the judge that it is not garnishable. There is some case law to support this argument.
I will be willing to represent you in court if you wish for my regular hourly fee.
Rochelle Guznack
Re: Garnishment: from unemployment funds
Not that I know of. s soon as that money goes into the account, the bank has to do what the court order requires.
Your better bet is to argue that you need that money to survive.
Garnishment is often used as a tool to get a negotiated agreement that the judge believes is good enough to lift the garnishment, precisely because people often need that money to survive long enough to make the money to pay the debt