Get free answers to your Collections legal questions from lawyers in your area.
I recently filed my 2024 taxes, expecting a refund of approximately $1,200 from both state and federal governments. However, I received a notice from a third-party debt collector stating there would be a garnishment of my taxes. I had no prior knowledge of any debt before this notification and have... View More

answered on Jun 3, 2025
You shouldn’t have your tax refund garnished unless the collector holds a valid court judgment against you. To get a judgment, they must prove you were properly served with the lawsuit, and if the addresses they used weren’t yours, that service could be invalid.
Even if a collector... View More
I won a $35,000 civil case in August 2024 in Michigan, and I am looking for a lawyer to help with collections. So far, only bank account collections have been attempted. The debtor recently purchased a new house and signed a lease for a business building to open a salon. I need assistance filing an... View More

answered on May 8, 2025
You will need to file a judgment lien against the party's home, but it will only attach to their interest in the property. Also, a judgment lien cannot be foreclosed upon. It is a lien that remain on the home until the debtor sells or refinances the home.
In Michigan, a credit card debt collection case attempted to serve me while I was out of town. It's been 103 days since the last attempt. They tried to serve me twice at my apartment complex, the first without my name and the second with my name. After returning, I found two letters attempting... View More

answered on May 15, 2025
In Michigan, the process for serving a summons or complaint in a debt collection case has specific time limits. Generally, a creditor must serve you within 90 days of filing the complaint. If service attempts fail, the creditor typically needs to request an extension from the court in order to... View More
I have an auto loan that went into default around August 2021, and a creditor purchased the debt. I only became aware of this when I received a letter from the creditor in May 2024. In December 2024, I found out there was a judgment against me, but I never received a court date to defend myself,... View More

answered on Apr 13, 2025
You're absolutely right to question the judgment—especially if you never received notice of the lawsuit or had the chance to defend yourself. In most states, for a judgment to be valid, the court must confirm that you were **properly served** with the summons and complaint. If the creditor... View More
I was sued for a car loan and credit card debt in Michigan, and the law office told me the interest rate is 13% weekly on the balance. I don't recall signing any agreement specifying this rate, except possibly when initially obtaining the loans. Is it legal for them to charge such a high... View More

answered on Apr 11, 2025
I'm sorry to hear about the situation you're facing. Charging 13% interest per week on a car loan or credit card debt in Michigan is highly questionable and likely illegal.
Under Michigan law, the general usury limit is 5% annually, or 7% if agreed upon in writing... View More
I have a debt for college fraternity dues that I haven't paid since before October 2018. I haven't acknowledged the debt in writing and have not received any legal notices from them. The collector only contacts me through phone calls. Can the collector still sue me for this debt after over 6 years?

answered on Apr 1, 2025
The collector can sue, but if you properly raise the statute of limitations as a defense, and no payment was made on the debt in the last six years, you should win. You may have to defend the suit to assert this defense.
I'm facing issues with medical bills from Munson Hospital that appear to be inadequate and have led to overcharging. An attorney is currently garnishing my wages for $3,000, even though I have paid a similar amount to resolve these bills a few months ago. I'm awaiting statements from the... View More

answered on Mar 25, 2025
I suggest you wait for the response from the law firm and then share that information with a lawyer. If the numbers don't make sense, you may be able to recover damages and lawyer fees under the FDCPA or the Michigan Collection Practices Act.
I am at risk of repossession for my vehicle and concerned about being pursued for the remaining amount on the contract afterward. I have considered using a 1099-C charge-off to settle the debt with my lender, but they informed me that debt settlement discussions would only occur after repossession.... View More

answered on Mar 24, 2025
You're facing a challenging situation with your auto loan. Unfortunately, a 1099-C form isn't something you can use to initiate a settlement - it's actually a tax form lenders issue after they've already forgiven a debt, making the forgiven amount potentially taxable income.... View More
I have a garnishment filed every year for a car repossession from 8 years ago, and my state refund is garnished and sent to the attorney. I have no agreement or contact with them, and this year is my first time able to get a federal tax refund. Can they also take my federal refund?

answered on Feb 25, 2025
No to Federal Refund. There is also no reason to file MI state taxes if you are going to get a refund. They is no penalty unless you owe and file late.
I have had a court-mandated garnishment for 9 years due to a car repossession. Each year, about $3,000 is taken from my tax refund. I have not been employed recently and haven't been able to communicate with the debt collectors. The original debt was $22,000, and my current balance is $13,000.... View More

answered on Feb 20, 2025
First thing. I assume these are Michigan refunds. If so stop filing. The state doesn’t care if you file when you expect a refund.
Why are you reluctant to file bankruptcy?
I received a summons letter due to co-signing my child's delinquent Sallie Mae student loan for $21,853.65. The letter states I must respond within 21 days, or a judgment may be entered against me. Previously, I received reminder letters. I am a retired senior citizen on disability and a fixed... View More

answered on Feb 18, 2025
Don't default! If you default they will get a judgment against you and may begin collection activity. I suggest you contact a bankruptcy lawyer immediately.
His net income is $1400 bi-weekly. They took $370 out of his last check. We cannot afford to lose that much money. Do we have any way to fight this. Is there a way to file bankruptcy without it costing us thousands of dollars?

answered on Jan 8, 2025
You have two options. You can file a motion for time payments with the Court, this may allow you to lower the amount you pay on a monthly basis and it will stop the garnishment. Or you can file a Bankruptcy. If you qualify for a Chapter 7, it should not cost you thousands of dollars. You should... View More
Also says home is not occupied what should I do

answered on Dec 9, 2024
The question "What should I do" is too complex to answer here. You may wish to consult an attorney to identify your options. There are several options, and the choice between the options will depend upon a number of factors.
Credit Acceptance sued me for a loan that they doubled. I never got a court date for the law suit or anything after for any other court dates for wage and tax garnishments. They are taking HALF of my paycheck every week.

answered on Dec 3, 2024
If you were not served with the summons and complaint, you may have a basis for setting aside the judgment and stopping the garnishment. Also, a wage garnishment is limited to 25% of your net take-home pay. However, you need to file something with the court to raise these issues, and most people... View More
They also send me paperwork 4 months after filing with the courts

answered on Nov 15, 2024
Yes. Debts can be renewed every 10 years. I always advise MI clients to not file MI tax returns if they are getting a refund since the state doesn’t care if there is no filing if there is a refund due.
Not sure what you mean about “they”sending you paperwork after filing. After what... View More
The summons has conflicting timestamps, issue dates and a 'proof of service' form that wasn't filled out in any capacity.
The document states that it was printed 8-15-24, however has an issue date of 8-2-24. It states I have 21 days to respond after receiving to answer. How... View More

answered on Aug 31, 2024
There is no requirement to have the person serve signed. It is enough to hand the summons to the servee. ▪
Total $3000 turns out the money I believed to be her personal funds was actually a personal loan from the bank that she did not disclose. Now two years later the loan was paid back and she’s insisting I pay her back. Nothing is in writing and my name was not listed as a borrower nor did we... View More

answered on Aug 27, 2024
If you agreed to pay her back, then you owe her the money and she might be able to sue to get a judgment.
My employer received a garnishment against me. I have already disputed this debt with the credit bureaus and had it removed and spoke with the collection agency and argued it is not my debt. I was on a lease with my mom and her boyfriend, because I was over the age of 16 I had to be listed on the... View More

answered on Aug 21, 2024
Your issue isn't with the credit bureaus - they only report accurate information. Your issue is that there is likely an underlying default judgment out there in some court with your name on it. What you probably need to do is find out what court that judgment is from and file a motion to set... View More
A few months ago I sent out Settlement letters to original account holder with no response and now this?

answered on Aug 13, 2024
Your next step is to file an answer with the court and the party suing you. The only settlement that matters is what both parties agree to.
Due to my medical insurance companies having differing policies on which insurance provider became my primary insurance, I had a series of medical bills go into collections and become a lawsuit due to non-payment. After the court ruled against me, Garnishment was taken from me. Later on, they then... View More

answered on Jun 10, 2024
A Michigan attorney could advise best, but your question remains open for a week. That sounds like it would be a tough case. You could be confronted with the question of what mitigating steps you took to negotiate or defend the matter before it ultimately made its way to garnishment. You could... View More
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