Money judgments are handed down in Michigan just about every day civil courts are an operation. And like every other state, Michigan has a set of rules governing how judgments can be collected. Winning a judgment does not allow a creditor and its attorney to do whatever they want to do. There are rules in place to protect everyone involved.
Do you have an outstanding judgment in Michigan you need help to collect? Judgment Collectors works on cases in the Wolverine State. Reach out to our team so we can discuss your case. In the meantime, here are four things to know about collecting money judgments in your state:
1. Judgments Are Subject to a Waiting Period
It would be nice if judgment creditors could begin collecting right away. But that is not the case. In Michigan, creditors must wait a minimum of 21 days from the date the judgment is signed. No collection efforts can begin during the waiting period.
A judgment creditor and its attorney or collection agency could begin formulating a strategy during the waiting period. But no wages can be garnished, no assets can be seized, and no other collection efforts can be entertained during those 21 days.
So why the waiting period? It is to give the judgment debtor time to appeal if they so choose. Granted, appeals are very difficult to win in civil cases. But if a defendant wants to appeal and their attorney thinks they have a compelling case, they must be given that opportunity.
2. Michigan Judgments Expire
A money judgment is essentially a legal recognition of an existing debt and the creditor’s legal right to collect it. Judgments are considered assets that can be bought or sold. In Michigan, as with most other states, judgments expire. They are not open-ended.
Michigan judgments expire after 10 years. But they can be renewed for an additional 10 years. Here’s how it works: if a judgment creditor has failed to collect after 10 years of working on a case, they can either let the judgment expire or renew it. If they choose to renew, the application for renewal must be submitted prior to the judgment’s expiration date.
One of the more unique aspects of Michigan’s rules is that a debtor making installment payments pauses the clock, so to speak. Let’s say a debtor makes installment payments for a year before stopping. That year gets added on to the original 10 years. Any outstanding balances could still be pursued through the end of the 11th year from the date of the judgment’s original signing.
3. Certain Types of Property Are Exempted
Michigan exempts certain types of property from collection efforts. For instance, Social Security income cannot be garnished to pay a money judgment. Certain types of real property cannot be seized for payment either.
4. Satisfaction Must Be Legally Recognized
Finally, satisfaction of an outstanding money judgment must be legally recognized. Once the debt is paid in full, the creditor is required by law to file a Certificate of Satisfied Judgement with the same county court that handed down the initial ruling. This closes the case and terminates any rights the creditor has to collect.
Collecting judgments in Michigan can be quite challenging. If you are struggling to collect, we invite you to contact us. We handle money judgments in Michigan on a consignment basis. We are more than happy to help. Let us know what you’re working on and we will determine what we can do for you. Should you decide to work with us, we will get busy right away.