My paycheck and bank account are being garnished for the same debt...help

[imayadatty]

I had a car repo'd a few years back..I'm currently having my wages garnished and just had my bank account hit for $300 for the same account. Is that even legal....it doesnt leave me with any money....after the check is garnished the remaining was deposited and they took that from the bank leaving me with ZERO.

[DesdemonaB]

imayadatty

Yes it's legal, unless you can prove the funds in the bank account came from exempted sources: unemployment compensation, workers’ compensation, state and federal civil service retirement benefits, and military retirement benefits.

FYI - The State of Michigan is the only state that allows for State Tax Refund to be withheld to pay back consumer debt. While Federal Income Tax Refunds can not be withheld for consumer debt, once it hits your bank account it's open for garnishment.

[DesdemonaB]

Sorry imayadatty I was at work and couldn’t go into details and it turns out I was not 100% correct:

Michigan allows for two types of garnishments:

Periodic: Wages, salary, commissions, bonuses, rent payments, land contract payments, or other debt which is paid on periodic basis. A periodic garnishment is valid for up to 91 days or till the judgment, interest and costs are paid off, whichever occurs first.

Non-periodic: Bank accounts (except for wages that are deposited in the account) or other property. The first 500.00 on deposit in a savings and loan savings account are exempt. Once money has been taken under a non-periodic writ, the writ is no longer valid (one time grab) If the garnishment doesn’t satisfy the debt another writ needs to be issued.

Michigan allows garnishment of Michigan income tax refunds, like a non-periodic garnishment is a one- time grab. Now that tax season is full swing, because don’t spend any state refund till you receive the check. Oh and don’t have it direct deposit – it because a non-except fund in any bank account and will up for grabs on a non-periodic writ.

I was correct in saying that funds that exempt are: unemployment compensation, workers’ compensation, state and federal civil service retirement benefits, and military retirement benefits.

Now if the funds deposited in your account are from your employer then the bank garnishment is precluded because the maximum amount permitted by law is being withheld pursuant to a higher priority garnishment or order. Meaning the wage garnishment @ 25% is the max per federal law, the garnishment of 300 puts that garnishment over the max allowed.

You have two choices:

You could allow the garnishment to go thru (the bank is required to hold funds for 28 days) and lower your total judgment balance. Or

You could fill out an Objections to Garnishment and Notice of Hearing form MC 49 and state your object as D – but you have to do it now as the form says it must be done within 14 days of service of the writ. If you make the deadline you will receive a hearing where you would prove proof that funds are from wages – wages already garnished.

Sorry of the incomplete answer – good luck.

[imayadatty]

Thanks for taking the time to help answer some of my questions. You were a big help!!

[imayadatty]

I just realized too that both my wife and I are being garnished for the same loan...out of our respective checks......is that legal?
It is regarding 1 vehicle....but both our names were on the original contract

[Freddy03]

I just realized too that both my wife and I are being garnished for the same loan...out of our respective checks......is that legal?
It is regarding 1 vehicle....but both our names were on the original contract

Yes b/c both names are on the contract so both are responsible for the debt.

[jetsfan2010]

unfortunately it is legal.