State Debt Laws
Michigan Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Michigan
Michigan (MI) - At a Glance
| State Consumer Protection Law | Michigan Collection Practices Act (MCPA) |
| Source | MCL ยง 339.901 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $1,000 in bank |
| Homestead Exemption | $40,475 ($60,712 if 65+) |
Key Protections in Michigan
- MCPA: collection agencies must be licensed
- Prohibits harassment, false statements
- FDCPA applies to third-party collectors
- Enhanced homestead for seniors
Wage Garnishment in Michigan
After a court judgment, creditors in Michigan can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Michigan follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Michigan
If a debt collector violates the FDCPA or Michigan Collection Practices Act (MCPA):
- File with the Michigan Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)