Question 1

What is the statute of limitations on debt in Michigan?

Accepted Answer

6 years to sue for breach of contract, written or oral.

Question 2

How long can a creditor sue on a credit card debt in Michigan?

Accepted Answer

6 years, the same as other contract claims. Michigan law does not set a separate period for credit cards or open accounts.

Question 3

Does making a payment restart the statute of limitations in Michigan?

Accepted Answer

Yes, but only in writing. A contract debt that is already time-barred is revived by an acknowledgment or promise to pay, but only if it is in a writing signed by the person who owes the debt.

Question 4

How long does a court judgment last in Michigan?

Accepted Answer

10 years for a judgment of a Michigan court of record (6 years for small claims and other courts not of record). Within that time, the creditor may sue on the judgment to obtain a new judgment, which starts a new period.

Question 5

How much of my wages can be garnished in Michigan?

Accepted Answer

Follows the federal limit: the amount garnished is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage (weekly). Employers calculate it on the court's garnishee disclosure form. A wage garnishment stays in effect until the judgment is paid.

Question 6

How much money in a bank account is protected from creditors in Michigan?

Accepted Answer

No general bank account exemption. Specific funds are protected, such as Social Security, SSI, unemployment, workers' compensation, public assistance, IRAs and qualified retirement plans.

Question 7

What is the homestead exemption in Michigan?

Accepted Answer

Outside bankruptcy, only $3,500 in value of a homestead (up to 40 acres, or one lot in a city or village) is exempt from execution. In bankruptcy, the Michigan homestead exemption is $51,150, or $76,725 if the debtor or a dependent is 65 or older or disabled, for cases filed on or after April 1, 2026. Property owned by a married couple as tenants by the entirety is exempt from a judgment against only one spouse.

Question 8

Can a creditor take my car in Michigan?

Accepted Answer

Outside bankruptcy, there is no separate car exemption; a vehicle used for work can be covered by the $1,000 tools-of-the-trade exemption. In bankruptcy, one motor vehicle is exempt up to $4,725 for cases filed on or after April 1, 2026.

Question 9

What debt collection practices are illegal in Michigan?

Accepted Answer

Yes. The Regulation of Collection Practices Act covers 'regulated persons' that collect their own consumer debts, such as banks, credit unions and other creditors collecting in their own name, and attorneys collecting for clients. Collection agencies are regulated under Article 9 of the Occupational Code.

Question 10

Do debt collectors need a license in Michigan?

Accepted Answer

Yes. A collection agency must be licensed by the state for each place of business. Agencies whose only Michigan activity is interstate communication are exempt from licensing but not from other collection rules.

Question 11

What is the maximum legal interest rate in Michigan?

Accepted Answer

Judgment interest is 1% plus the average rate on 5-year U.S. Treasury notes, reset every 6 months (January 1 and July 1) as certified by the State Treasurer, compounded annually. If the judgment is on a written instrument with a stated interest rate, that rate applies, capped at 13% a year compounded annually. Regulated lenders may generally charge up to 25% a year; banks may charge any rate on credit cards.

Question 12

How do I respond to a debt collection lawsuit in Michigan?

Accepted Answer

You have 21 days after receiving the summons and complaint to file a written answer with the court and serve a copy on the other party (28 days if served by mail or outside Michigan). If you do not answer, judgment may be entered against you. In small claims court, you must appear at the hearing instead.

Question 13

How do I stop a garnishment or claim an exemption in Michigan?

Accepted Answer

File Objections to Garnishment (form MC 49) with the court that signed the writ, at no cost (except in probate court). If objections are filed within 14 days after you are served with the writ, the garnishee keeps withholding but may not release the money until the court orders; if filed later, the garnishee keeps withholding and releasing funds unless the court orders otherwise. Grounds include exempt income, bankruptcy, an installment payment order, the legal maximum already being withheld, payment in full, or an invalid writ. You may also ask the court for an installment payment order instead of garnishment (form MC 15).

Question 14

Which bankruptcy exemptions can I use in Michigan?

Accepted Answer

Michigan is not an opt-out state: a debtor in bankruptcy may choose the federal exemptions or Michigan's special bankruptcy exemption list in MCL 600.5451, whose dollar amounts are inflation-adjusted every 3 years.

Time limit to sue on a written contract	6 years to sue for breach of contract, written or oral. Source: MCL 600.5807(1), (9)
Time limit for credit cards and open accounts	6 years, the same as other contract claims. Michigan law does not set a separate period for credit cards or open accounts. Source: MCL 600.5807(9)
Can a payment restart the clock?	Yes, but only in writing. A contract debt that is already time-barred is revived by an acknowledgment or promise to pay, but only if it is in a writing signed by the person who owes the debt. Source: MCL 600.5866
How long a judgment lasts	10 years for a judgment of a Michigan court of record (6 years for small claims and other courts not of record). Within that time, the creditor may sue on the judgment to obtain a new judgment, which starts a new period. Source: MCL 600.5809(3)

Wage garnishment limit	Follows the federal limit: the amount garnished is the lesser of 25% of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage (weekly). Employers calculate it on the court's garnishee disclosure form. A wage garnishment stays in effect until the judgment is paid. MCL 600.4012: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-4012. No separate Michigan head-of-household wage exemption was confirmed. Source: 15 U.S.C. 1673; MCR 3.101; SCAO form MC 14; MCL 600.4012
Money protected in a bank account	No general bank account exemption. Specific funds are protected, such as Social Security, SSI, unemployment, workers' compensation, public assistance, IRAs and qualified retirement plans. MCL 600.6023: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-6023 Source: MCL 600.6023; SCAO form MC 12 (list of exempt income)
Homestead exemption	Outside bankruptcy, only $3,500 in value of a homestead (up to 40 acres, or one lot in a city or village) is exempt from execution. In bankruptcy, the Michigan homestead exemption is $51,150, or $76,725 if the debtor or a dependent is 65 or older or disabled, for cases filed on or after April 1, 2026. Property owned by a married couple as tenants by the entirety is exempt from a judgment against only one spouse. Bankruptcy amounts are adjusted for inflation every 3 years by the State Treasurer (MCL 600.5451(4)); 2026 notice: https://www.michigan.gov/treasury/-/media/Project/Websites/treasury/ORTA/Economic-Reports-Notices/FY-2026/Bankruptcy-Notice_-March-2026-Signed.pdf (prior 2023 values $46,125 / $69,200). Source: MCL 600.6023(1)(g); MCL 600.6023a; MCL 600.5451(1)(m); Treasury notice Jan. 30, 2026
Vehicle exemption	Outside bankruptcy, there is no separate car exemption; a vehicle used for work can be covered by the $1,000 tools-of-the-trade exemption. In bankruptcy, one motor vehicle is exempt up to $4,725 for cases filed on or after April 1, 2026. Inflation-adjusted every 3 years; the 2023 value was $4,250. MCL 600.5451: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-5451 Source: MCL 600.6023(1)(e); MCL 600.5451(1)(g); Treasury notice Jan. 30, 2026
Claiming an exemption	File Objections to Garnishment (form MC 49) with the court that signed the writ, at no cost (except in probate court). If objections are filed within 14 days after you are served with the writ, the garnishee keeps withholding but may not release the money until the court orders; if filed later, the garnishee keeps withholding and releasing funds unless the court orders otherwise. Grounds include exempt income, bankruptcy, an installment payment order, the legal maximum already being withheld, payment in full, or an invalid writ. You may also ask the court for an installment payment order instead of garnishment (form MC 15). Form MC 49 (notice of hearing section): https://www.courts.michigan.gov/siteassets/forms/scao-approved/mc49.pdf Source: MCR 3.101; SCAO forms MC 49 and MC 15
Bankruptcy exemptions	Michigan is not an opt-out state: a debtor in bankruptcy may choose the federal exemptions or Michigan's special bankruptcy exemption list in MCL 600.5451, whose dollar amounts are inflation-adjusted every 3 years. Source: MCL 600.5451(1), (4)

State debt collection law	Yes. The Regulation of Collection Practices Act covers 'regulated persons' that collect their own consumer debts, such as banks, credit unions and other creditors collecting in their own name, and attorneys collecting for clients. Collection agencies are regulated under Article 9 of the Occupational Code. Source: MCL 445.251 et seq.; MCL 339.901 et seq.
Debt collector licensing	Yes. A collection agency must be licensed by the state for each place of business. Agencies whose only Michigan activity is interstate communication are exempt from licensing but not from other collection rules. Source: MCL 339.904
Interest rate limits	Judgment interest is 1% plus the average rate on 5-year U.S. Treasury notes, reset every 6 months (January 1 and July 1) as certified by the State Treasurer, compounded annually. If the judgment is on a written instrument with a stated interest rate, that rate applies, capped at 13% a year compounded annually. Regulated lenders may generally charge up to 25% a year; banks may charge any rate on credit cards. MCL 445.1854: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-445-1854. Source: MCL 600.6013(7)-(8); MCL 445.1854

Michigan Debt Collection Laws: Time Limits, Garnishment and Your Rights

Quick answers for Michigan

Time limits

If you are sued

Garnishment and what creditors can't take

Debt collectors and interest

Where to get help in Michigan

Debt & Collections FAQ

More Michigan law