When a Debtor is unable to pay his bill, a creditor may file a lawsuit and obtain a judgment to collect. Once a creditor obtains a judgment, they can proceed to collect on the judgment in various ways. A creditor may garnish wages, seize a bank account, garnish a State tax refund or have a court officer seize property of the Debtor such as a car or household items.

Filing for bankruptcy in Michigan stops a creditor from collecting even if they have a judgment. If you have debts and are unable to afford to pay them, bankruptcy may be the best options to resolve your financial problems. It is best to file bankruptcy before a creditor obtains a judgment.

If a creditor has already obtained a judgment and has started garnishing wages, filing bankruptcy will stop the garnishment. If the creditor garnished more than $600.00 within 90 days of filing the bankruptcy, it may be possible to retrieve the garnished funds back. If a creditor garnished a bank account for more than $600.00 within 90 days of filing bankruptcy, the Debtor should be able to recover the garnished funds. Even if a creditor seized a vehicle within 90 days of filing bankruptcy, it should be able to be recovered by the Debtor.

Stop Wage Garnishments

Of course the best practice, is to file bankruptcy before creditors have started garnishing or seizing property. If you're in a situation where you need to stop garnishments in Michigan, contact our Detroit bankruptcy attorneys today for a free consultation. We'll listen and come up with the best solution for you and your family.