Wage garnishment is employed any time a debt collector has a judgment against you. They can find out where you work and take 25% of your wages. If there is going to be any settlement, it needs to be worked out between the debt collector and your attorney, under terms that you can afford.
How Long Are Court Judgments Enforceable?
In Michigan, court judgments last 10 or more and they can be renewed within the 10 year timeframe. There is some case law that suggests that the 10 years starts running from the last activity. If you go nine years and they find some money in your bank account, it might start the clock all over again. The case law suggests that it does.
What Is The Statute Of Limitations For Debt Related Cases?
The statute of limitations for contract cases in Michigan is six years. There are some exceptions, but they are few.
Should I Try And Work Out A Payment Plan If I Am Being Sued By a Creditor?
If you are being sued by a creditor, you shouldn’t do anything except hire an attorney right away. For instance, you might enter into a payment plan to pay $100 a month and think that it’s great. Chances are, you could have gotten a way better deal with an attorney negotiating on your behalf. If your settlement agreement is in the form of a consent judgment or is not worded properly, you might make your first monthly payment by giving them your bank account number and they might empty out your bank account. If your settlement agreement doesn’t account for garnishment, tax garnishment, or execution on property, then you’ve got a payment plan that isn’t worth anything. You definitely need an attorney to help you work out a payment plan and to protect you.
Do People And Creditors Actually End Up Having To Go To Court In These Types Of Cases?
In these types of cases, attorneys usually have to appear up to five or six times on behalf of their client. Typically speaking, if you hire an attorney, in most cases, the attorney will appear for you and you don’t ever have to set foot in court. If you don’t want to hire an attorney and you want to represent yourself, then you do have to appear in court. There is a downside to appearing in court on your own behalf: everything you say is an admission. That’s a terrible position to be in.
Should People File Bankruptcy in Response To A Creditor Lawsuit?
Sometimes bankruptcy is an option as a last resort. When people come to our office and they are being sued, one of the things we look at is whether or not it’s even worth it for them to hire us. If they have several tens of thousands of dollars’ worth of unsecured debt and a few judgments against them, it may not be worth it for them to defend that particular lawsuit. It may be more cost effective for them to file a bankruptcy. In a lot of cases, the debts are not big enough to warrant filing bankruptcy. In other instances, the debts are directly caused by identity theft. Under those circumstances, where the debt is not yours, I don’t think you should ever file bankruptcy because that’s almost like admitting that you owe the money. If the debt is not yours, the answer is to fight back.
For more information on Wage Garnishment In Debt Collection Cases, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (248) 843-0550 today.