SELF-HELP GUIDE TO
GARNISHMENT AND INSTALLMENT PAYMENTS
This is a self-help guide to enable you complete and file the papers necessary to
ask the court to pay off a money judgment against you in installments. This guide is provided as a
service by LEGAL AID OF CENTRAL MICHIGAN for you to use. It is not intended to give
legal advice concerning your rights under any law. You should contact an attorney if specific
questions arise. If you have any doubt about whether you should be required to pay the money
judgment or if your income or assets should not be garnished, you should contact an attorney or
call Legal Aid of Central Michigan (517)-485-5411) or the Lawyer Referral Service
(l-800-678-8322).
If a creditor has taken you to court and obtained a money judgment against you,
the creditor can enforce the judgment and collect the money owed by a number of ways. A
creditor can attach your personal property and sell it at an auction, or a creditor can attach a
portion of your wages from your job. This is termed a "garnishment" of your wages. When your
wages are garnished by the creditor, your employer deducts the garnished amount from your pay
and sends it to the creditor to pay the debt. Certain other types of income, such as social security,
worker's compensation, are exempt from garnishment.
There are several other terms that are used in garnishment proceedings that you
should be familiar with. The "plaintiff" is the creditor who sued you and obtained the money
judgment. The "garnishee defendant" is your employer who is being ordered by the court to pay a
portion of the wages you have earned to the creditor. You are the "principal defendant".
Once a creditor has obtained a judgment against you, the creditor can start the
garnishment proceeding. The creditor does this by filing an Affidavit and Writ of Garnishment
with the court clerk. The court clerk then sends the Affidavit and Writ of Garnishment garnishee
defendant (your employer). Your employer then has seven (7) days to complete the Garnishee
Disclosure and file a copy with the court and send a copy to you. The Garnishee Disclosure tells
the court whether or not the employer is paying your wages. If the employer is paying you
wages, the employer must complete the Garnishee Calculations Sheet for Earnings based on your
current wages. The Garnishee Calculation Sheet for Earnings shows the amount to be withheld
from your wages and must also sent to you by your employer. Once your employer files the
Garnishee Disclosure and the Garnishee Calculation sheet for Earnings with the court, the creditor
will ask the court to order your employer, the garnishee defendant, to deduct the amount from
your pay each pay period and pay that amount to the creditor until the judgment is paid off.
To determine how much of your wages can be garnished, use the attached
Garnishee Calculation Sheet for Earnings. Normally, $154.50 per week of your net earnings
cannot be garnished. From your last pay stub write your gross weekly income from your job on
Line l. Write your deductions for taxes, Medicare and social security and total them on Line 2.
By subtracting Line 2 from Line 1, you will have your disposable earnings on Line 3.
SELF-HELP GUIDE TO
GARNISHMENT AND INSTALLMENT PAYMENTS
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Multiply Line 3 by 0.25 (25%) to determine the amount available for garnishment
under Test l and write this amount on Line 4. Next, from the chart at the bottom of the page,
write the amount which corresponds to your pay period on Line 5. For example, if you are paid
every two (2) weeks, write $309.00 on Line 5a. Subtract the amount on Line 5a from Line 3 and
write that amount on Line 5b. Compare Line 5b to Line 4. Write the smaller of the two on Line
6. Write any ordered deductions from your wages as shown on your pay stub on Line 7. Ordered
deductions include, Chapter l3 bankruptcy payments, past due federal or state taxes, child support
and any other garnishments. Total Line 7, subtract the total from Line 6 and write the amount on
Line 8. Compare Line 8 with the amount of the judgment the creditor received against you. The
smaller of the two amounts is the amount that can be withheld from your wages.
After determining how much of your wages an be garnished, you may want to file
a Petition for Installment Payments with the court. If nothing can be garnished, you need not file
the Petition for Installment Payments. Only those people that have wages from employement
should file the petition for installment Payments. To file for installment payments, you should
use the Petition for Installment Payments and the Order Regarding Installment Payments which
are attached to this guide. Complete both forms as follows:
1) Write in the name and address of the plaintiff/creditor and the creditor's attorney in the spaces
shown. Write in your name and address in the box labeled "Principal Defendant". Write in the
case number at the top of the form. The case number can be found on the judgment or other
papers sent to you by the creditor, or by calling the court clerk.
2) Write the amount of the judgment the creditor received against you and the date the judgment
was entered in the spaces provided. If you do not know these amounts, the court clerk can assist
you.
3) Fill-in the information concerning your employment. Under "Outstanding judgments and
obligations" write "see reverse side". On the reserve side, in the box provided, list all of your
debts, obligations, and monthly payments. These should include rent/mortgage, utilities, child
support, child care, food, car, gas, and any other payments you may make. It is very important to
fill-out the financial information as completely as possible to the best of your ability.
4) Determine an amount that you are able to pay, for example, $25 per month. Write the amount
and payment period in the spaces provided. Do not list an amount that you are unable to pay.
5) If a Writ of Garnishment has been previously issue, fill-in Line 3.
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GARNISHMENT AND INSTALLMENT PAYMENTS
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6) Fill-in the case number, the creditor/plaintiff, the creditor's attorney, and your name and
address as in the Petition for Installment Payments, on the Order Regarding Installment Payments.
Also complete the date the judgment was entered and the judgment amount. Check the box only
if a Writ of Garnishment has been issued. Do not complete the rest of the form.
7) Take the petition for Installment Payments and the Order Regarding Installment Payments to
the court clerk's office. Sign the Petition for Installment Payments in the presence of the court
clerk. The Petition for Installment Payments must be notarized and the court clerk will do this for
no charge. Only sign the petition for installment payments in the presence of the court clerk
or a notary.
8) The court clerk will assign a hearing date and will fill-in the date and time you are to appear.
The court clerk will also send a copy of the Petition for Installments Payments to the
creditor/plaintiff or the creditor's attorney.
9) Appear in court on the date and time the court clerk assigned to you. Bring the completed
Order Regarding Installment Payments with you. If you do not appear, the garnishment will
issue and the amount will be deducted from your wages.
10) In court, ask the judge for the amount you determined you could pay in installments. Do not
tell the judge an amount you cannot or will be unable to pay. If you miss a payment, the creditor
can then have the order set aside. If the judge agrees with you, have him complete the order
Regarding Installment Payments.
Once you file the Petition for Installment Payments with the court clerk, the
creditor cannot garnish your wages as long as you make the payments. If you fail to make the
payments or make less than the ordered amount, the creditor can have the installment agreement
set aside. Installment payments will only stop the garnishment of your wages from employment.
The creditor can still garnishee anything else including bank accounts and tax refunds.