What Happens When Creditors Take You To Court

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 morethan $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.

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