Does filing bankruptcy stop every garnishment?

No. Section 362(a) generally operates on filing without a separate order, but § 362(b) lists exceptions, including withholding of income for a domestic support obligation under (b)(2)(C). A creditor may also request relief from the stay after notice and a hearing under § 362(d). Repeat-filing rules in § 362(c)(3) and (c)(4) can shorten the stay or prevent it from arising.

What do the repeat-filing rules in section 362(c)(3) and (c)(4) say?

Under § 362(c)(3), if a single or joint case is filed by or against an individual under chapter 7, 11, or 13, and a single or joint case of that debtor was pending within the preceding 1-year period but was dismissed, other than a case refiled under a chapter other than chapter 7 after dismissal under § 707(b), the stay terminates with respect to the debtor on the 30th day after the filing of the later case, as to any action regarding a debt, property securing that debt, or a lease. A party in interest may move to extend it, with notice and a hearing completed before that 30-day period expires, on a showing of good faith as to the creditors to be stayed. Subsection (c)(4) is separate. If a later single or joint case is filed by or against an individual under this title and 2 or more of the debtor's single or joint cases were pending within the previous year but were dismissed, with the same § 707(b) exception, the stay does not go into effect. A party in interest may request within 30 days after the later filing that the court impose a stay, which it may do after notice and a hearing on the same good-faith showing, effective on the date the order is entered. Under both paragraphs, specified circumstances create a presumption that a case was filed not in good faith; that presumption may be rebutted by clear and convincing evidence.

Can my employer fire me over a garnishment?

MCL 600.4015 provides that a garnishee defendant must not use the fact that one or more actions were brought against the principal defendant under that chapter or section 8306 as a cause of discipline or discharge, and requires reinstatement and reimbursement of compensation lost, enforceable by civil action. Federal law separately bars discharge because earnings have been garnished for any one indebtedness (15 U.S.C. § 1674). Both provisions address employment retaliation rather than how much may be withheld.

Is all my retirement money safe from garnishment in Michigan?

Not automatically. MCL §§ 38.1682–38.1685 shields the right of a member or retirant to a retirement benefit from the defined public-employee retirement systems, but the same act preserves forfeiture and domestic-relations or support awards and limits how such orders operate. MCL § 38.1687 subjects those benefits to state correctional facility reimbursement claims. Private accounts are governed by other law, including 11 U.S.C. § 522 in bankruptcy.

Which exemptions apply if I recently moved to Michigan?

Under 11 U.S.C. § 522(b)(3)(A), the applicable state or local law is that of the place where your domicile was located for the 730 days immediately preceding filing. If your domicile was not in a single state for that period, it is the place where you were domiciled for the 180 days immediately preceding those 730 days, or for a longer portion of that 180-day period than in any other place. If that requirement leaves you ineligible for any exemption, the statute lets you elect the § 522(d) list.

Do Michigan's bankruptcy exemption amounts change?

Yes. These are bankruptcy exemption limits on interests in property, not a cap on wage withholding. For cases filed on or after April 1, 2026, Michigan's adjusted homestead limit is $51,150, rising to $76,725 where the debtor or a dependent is 65 or older or disabled at filing, with $4,725 for one motor vehicle and $3,400 for tools of the trade (Mich. Comp. Laws § 600.5451(1)). Whether this list is available to you depends on the domicile rules in 11 U.S.C. § 522(b), as the previous FAQ explains.

Wages & debt

Wage Garnishment in Michigan: What the Law Says and What Bankruptcy Changes

Michigan wage garnishment follows a judgment, and federal law caps ordinary garnishment in a workweek at the lesser of 25% of disposable earnings or earnings above 30 times the federal minimum hourly wage, with exceptions for support, chapter 13 orders, and state or federal taxes. Objections are due within 14 days of service on the defendant or of the most recent balance statement; later objections do not suspend payment unless the court orders it. Filing bankruptcy generally triggers a stay, subject to domestic-support withholding, repeat-filing limits, and court-ordered relief.

Key points

A garnishment for money owed on account of labor performed cannot be commenced until the plaintiff's claim has been reduced to judgment (MCL 600.4011).
Federal law limits ordinary wage garnishment for any workweek to the lesser of 25% of disposable earnings for that week or the amount by which they exceed 30 times the federal minimum hourly wage in effect when the earnings are payable (15 U.S.C. § 1673), with stated exceptions.
Objections to a Michigan writ are due within 14 days of service on the defendant or of the most recent balance statement, and late objections do not suspend payment unless the court orders it (MCR 3.101).
Several Michigan statutes make specific benefits inalienable by garnishment, each with its own conditions and exceptions.
Filing a petition under 11 U.S.C. § 301 generally operates as a stay under § 362(a), but exceptions, repeat-filing rules, and court-ordered relief all qualify that.

If money is already missing from your paycheck, the first useful thing is knowing which rules are actually at work. Michigan garnishment runs on a mix of state statutes, Michigan court rules, and a federal wage ceiling. This page explains what those sources say and what a bankruptcy filing changes, without guessing at anything they leave open.

How much of your pay can be garnished in Michigan?

Under 15 U.S.C. § 1673(a), the maximum part of your aggregate disposable earnings subjected to garnishment for any workweek may not exceed 25% of your disposable earnings for that week, or the amount by which those earnings exceed 30 times the federal minimum hourly wage prescribed by section 206(a)(1) of title 29 in effect at the time the earnings are payable, whichever is less. For other pay periods, an equivalent multiple of that minimum wage is prescribed by regulation. "Disposable earnings" means earnings remaining after deducting amounts required by law to be withheld, and "earnings" includes wages, salary, commission, bonus, and periodic pension or retirement payments (15 U.S.C. § 1672).

Those restrictions do not apply to a support order issued by a court of competent jurisdiction or in accordance with a qualifying administrative procedure, to an order of a United States court with jurisdiction over chapter 13 cases, or to a debt due for any state or federal tax, and support orders carry their own higher percentages (§ 1673(b)(1), (b)(2)). Federal law also leaves in place state laws providing more limited garnishment than it allows (15 U.S.C. § 1677).

What do Michigan statutes and court rules require of creditors and courts?

A garnishment proceeding for money owing to you on account of labor you performed cannot be commenced until the plaintiff's claim has been reduced to judgment (MCL 600.4011). A writ may issue before judgment only on an ex parte showing that the person against whom the claim is asserted is beyond the state's judicial jurisdiction or cannot be served after diligent effort. MCL 600.4061 and MCL 600.4061a cover garnishment served on the state and state tax refunds.

After judgment, MCR 3.101 governs. The court clerk issues the writ on the plaintiff's verified request only if it appears correct and complies with the rules and statutes. The writ must be served on the garnishee within 182 days after it was issued. The garnishee then has 7 days to deliver or mail a copy to the defendant, and 14 days after service to file a verified disclosure. A garnishment of periodic payments remains in effect until the balance of the judgment is satisfied (MCL 600.4012), subject to the limits and objections described below. While it is in effect, the plaintiff must give the garnishee and the defendant a balance statement at least once every 6 months after receiving the first payment, and a late statement does not itself affect the garnishment or the garnishee's obligations (MCL 600.4012(5)(a)).

Which income is shielded from garnishment under Michigan law?

Several Michigan statutes make particular funds inalienable, each on its own terms. Worker's compensation payments are not subject to attachment or garnishment, though MCL § 418.821 preserves exceptions for specified insurance and health-plan assignments. Unemployment benefits are absolutely inalienable by garnishment, with a proviso in MCL § 421.30 about obligations incurred for necessaries furnished while the person was unemployed. Aid or assistance under MCL § 400.63 is inalienable except as that statute's subsection (2) allows for certain rental-housing judgments. Support money is shielded from garnishment while held by the state disbursement unit (MCL § 400.238).

Public-employee retirement benefits defined in MCL §§ 38.1682–38.1685 are not subject to garnishment, attachment, or the operation of bankruptcy laws, but the same act preserves forfeiture, domestic-relations and support awards, and limits on how such orders operate. MCL § 38.1687 subjects those benefits to state correctional facility reimbursement claims.

None of this makes every retirement account or every deposit immune.

Which protections may matter when contesting a Michigan garnishment?

MCR 3.101(K)(1) requires objections to be filed within 14 days of the date the writ was served on the defendant, or within 14 days of the most recent balance statement sent under MCL 600.4012(5)(a). Objections may be filed later, but a late objection does not suspend payment unless the court orders it. Objections address defects in or the invalidity of the garnishment proceeding itself, or the balance on that statement; they cannot be used to challenge the judgment already entered.

Subrule (K)(2) lists the available grounds, including that the funds or property are exempt by law, that bankruptcy proceedings are pending, that an installment payment order bars the garnishment, that a higher-priority order is already withholding the maximum permitted, that the judgment has been paid, that the writ was not properly issued, or that the stated balance is incorrect. Within 7 days of filing, hearing notice goes out, and the hearing date must be within 21 days of filing.

District court sends the hearing notice; in circuit and probate court the objecting party sends it.
An installment payment order under MCL 600.6201 et seq. suspends a periodic garnishment for work and labor from the time the order is served on the garnishee, not from filing a request.
That installment order does not suspend a nonperiodic garnishment or an income tax refund writ.

Which deadlines belong to the employer rather than to you?

MCR 3.101 sets several clocks that run from different events. Some run from service of the writ on the garnishee, usually your employer. Your objection deadline runs from service on you or from the most recent balance statement.

Withholding starts under the pay-period rules in subrule (I)(2), not after the 28-day transmittal date.
MCL 600.4015 says a garnishee defendant must not use the fact that garnishment actions were brought against you under that chapter as a cause of discipline or discharge, and provides reinstatement, reimbursement of lost compensation, and a civil action.
Federal law separately bars discharge by reason of garnishment for any one indebtedness (15 U.S.C. § 1674).

Who each MCR 3.101 deadline belongs to
Deadline	Whose obligation	What it governs
7 days after service on the garnishee	Employer or other garnishee	Deliver or mail a copy of the writ to the defendant, subrule (F)(2)
14 days after service on the garnishee	Employer or other garnishee	File a verified disclosure of liability, subrule (H)
14 days after service on the defendant or the most recent balance statement	You, the defendant	File objections, subrule (K)(1); a late objection does not suspend payment unless ordered by the court
First full pay period after service	Employer	When withholding commences under subrule (I)(2), with a separate rule for monthly pay periods
After 28 days from service on the garnishee	Employer or other garnishee	Transmit withheld funds unless notified that objections were filed, subrule (J)(1)

How does filing bankruptcy affect a Michigan garnishment?

A voluntary case is commenced by filing a petition (11 U.S.C. § 301). Under 11 U.S.C. § 362(a), the petition operates as a stay, applicable to all entities, of acts including continuing a prepetition proceeding against the debtor, enforcing a prepetition judgment against the debtor or property of the estate, and collecting a prepetition claim. No separate court order creates that stay.

Section 362(b) lists exceptions, including withholding of income that is property of the estate or of the debtor for payment of a domestic support obligation under a judicial or administrative order or a statute, under (b)(2)(C). Except as subsections (d), (e), (f), and (h) provide, the stay of an act against property of the estate continues under (c)(1) until that property is no longer property of the estate, and the stay of any other act continues under (c)(2) until the earliest of the case closing, the case being dismissed, or, in a chapter 7 case concerning an individual or a case under chapter 9, 11, 12, or 13, a discharge being granted or denied. A party in interest may seek relief from the stay under (d), and § 362(c)(3) and (c)(4) limit it after an earlier dismissed case, as the FAQ below explains.

What should you ask a lawyer or legal aid about your garnishment?

Michigan procedure varies by court, and this page does not substitute for the filing and service instructions your own court applies. Bring the paperwork you received, including the writ and any balance statement, and note the dates on each. A legal aid office or bankruptcy lawyer can tell you which clock applies to you and whether any of the state benefit statutes reaches your particular income.

What date was I served, and how many days are left under MCR 3.101(K)(1)?
Which filing and service method does this court require for objections, and can I file electronically?
Do any of the grounds in subrule (K)(2) fit my situation, and is a higher-priority order already withholding the maximum?
Is my income within MCL § 418.821, § 421.30, § 400.63, § 400.238, or §§ 38.1682–38.1685, including those statutes' exceptions?
Would an installment payment order under MCL 600.6201 et seq. help, and when would it take effect against my employer?
Have I had a prior bankruptcy case dismissed within the past year, and how would 11 U.S.C. § 362(c)(3) or (c)(4) apply?
Which exemption list applies to me under 11 U.S.C. § 522(b), given where I have lived?

Frequently asked questions

Does filing bankruptcy stop every garnishment?: No. Section 362(a) generally operates on filing without a separate order, but § 362(b) lists exceptions, including withholding of income for a domestic support obligation under (b)(2)(C). A creditor may also request relief from the stay after notice and a hearing under § 362(d). Repeat-filing rules in § 362(c)(3) and (c)(4) can shorten the stay or prevent it from arising.
What do the repeat-filing rules in section 362(c)(3) and (c)(4) say?: Under § 362(c)(3), if a single or joint case is filed by or against an individual under chapter 7, 11, or 13, and a single or joint case of that debtor was pending within the preceding 1-year period but was dismissed, other than a case refiled under a chapter other than chapter 7 after dismissal under § 707(b), the stay terminates with respect to the debtor on the 30th day after the filing of the later case, as to any action regarding a debt, property securing that debt, or a lease. A party in interest may move to extend it, with notice and a hearing completed before that 30-day period expires, on a showing of good faith as to the creditors to be stayed. Subsection (c)(4) is separate. If a later single or joint case is filed by or against an individual under this title and 2 or more of the debtor's single or joint cases were pending within the previous year but were dismissed, with the same § 707(b) exception, the stay does not go into effect. A party in interest may request within 30 days after the later filing that the court impose a stay, which it may do after notice and a hearing on the same good-faith showing, effective on the date the order is entered. Under both paragraphs, specified circumstances create a presumption that a case was filed not in good faith; that presumption may be rebutted by clear and convincing evidence.
Can my employer fire me over a garnishment?: MCL 600.4015 provides that a garnishee defendant must not use the fact that one or more actions were brought against the principal defendant under that chapter or section 8306 as a cause of discipline or discharge, and requires reinstatement and reimbursement of compensation lost, enforceable by civil action. Federal law separately bars discharge because earnings have been garnished for any one indebtedness (15 U.S.C. § 1674). Both provisions address employment retaliation rather than how much may be withheld.
Is all my retirement money safe from garnishment in Michigan?: Not automatically. MCL §§ 38.1682–38.1685 shields the right of a member or retirant to a retirement benefit from the defined public-employee retirement systems, but the same act preserves forfeiture and domestic-relations or support awards and limits how such orders operate. MCL § 38.1687 subjects those benefits to state correctional facility reimbursement claims. Private accounts are governed by other law, including 11 U.S.C. § 522 in bankruptcy.
Which exemptions apply if I recently moved to Michigan?: Under 11 U.S.C. § 522(b)(3)(A), the applicable state or local law is that of the place where your domicile was located for the 730 days immediately preceding filing. If your domicile was not in a single state for that period, it is the place where you were domiciled for the 180 days immediately preceding those 730 days, or for a longer portion of that 180-day period than in any other place. If that requirement leaves you ineligible for any exemption, the statute lets you elect the § 522(d) list.
Do Michigan's bankruptcy exemption amounts change?: Yes. These are bankruptcy exemption limits on interests in property, not a cap on wage withholding. For cases filed on or after April 1, 2026, Michigan's adjusted homestead limit is $51,150, rising to $76,725 where the debtor or a dependent is 65 or older or disabled at filing, with $4,725 for one motor vehicle and $3,400 for tools of the trade (Mich. Comp. Laws § 600.5451(1)). Whether this list is available to you depends on the domicile rules in 11 U.S.C. § 522(b), as the previous FAQ explains.

Sources

MCL 600.4011 — Garnishment; power of court; conditions
MCL 600.4012 — Garnishment of periodic payments
MCR 3.101 — Garnishment After Judgment
MCL 600.4015 — Discipline or discharge of principal defendant prohibited
MCL § 418.821 — Worker's compensation payments; assignment, attachment, garnishment
MCL § 421.30 — Benefits inalienable
MCL § 400.63 — Aid, relief, or assistance inalienable
MCL § 400.238 — State disbursement unit; support payments
MCL §§ 38.1682–38.1685 — Public Employee Retirement Benefit Protection Act
MCL § 38.1687 — State correctional facility reimbursement act claims
11 U.S.C. § 301 — Voluntary cases
11 U.S.C. § 362 — Automatic stay · official source
11 U.S.C. § 522 — Exemptions · official source
15 U.S.C. § 1672 — Definitions
15 U.S.C. § 1673 — Restriction on garnishment
15 U.S.C. § 1674 — Restriction on discharge from employment by reason of garnishment
15 U.S.C. § 1677 — Effect on State laws
MCL 600.4061 — Service of garnishment process on the state
MCL 600.4061a — Interception of state tax refund or credit
Mich. Comp. Laws § 600.5451(1); Michigan Department of Treasury — Bankruptcy Exemption Inflation Adjustments (Jan. 30, 2026) — Michigan bankruptcy exemption inflation adjustments

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified October 11, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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