MI Supreme Court Issues Garnishment Rules to Supplement Chamber-Backed Reforms

September 28, 2015

Last week, the Michigan Supreme Court issued new rules and forms to reflect the garnishment reform legislation that was championed by the Michigan Chamber and signed into law earlier this year.

View revised court rules. The revised forms may be viewed here:

House Bills 4119 and 4120, now Public Acts 14 and 15 of 2015, addressed several long-standing issues with the garnishment process, including:  

  • Putting an end to the practice of allowing creditors to pursue a default judgment against the full bad debt of an employee by requiring several notices to the employer of its failure to garnish and give ample opportunity to employers to cure their errors.
  • Specifying that a Writ of Garnishment would continue until the debt is paid off (current practice requires renewal every 182 days) and increase the fee creditors pay to administer garnishments from $6 every 182 days to a flat $35 fee.
  • Making the service of garnishment consistent with the service of other legal documents.
  • Defining “garnishment” to help the courts and others better identify what types of court orders qualify as a garnishment, thereby requiring third parties and/or employers to withhold income and remit payment.

This legislation is a real solution to a real problem our members face and is intended to address the most serious issues and financial risks associated with the garnishment process while still ensuring the right of creditors to collect monies owed to them. The Court rules and forms help clarify the intent of the law and the steps and procedures that must be followed. 

For more information, contact Wendy Block at (517) 371-7678 or wblock@michamber.com.

View the on-demand webinar "Wage Garnishments: New Amendments Effective September 2015".