Michigan Debt Collection Basics

The validation notice and your 30 days

When a debt collector first contacts you about a debt, federal law requires a validation notice identifying the amount, the creditor, and your right to dispute. If you dispute in writing within 30 days, the collector must stop collection activity until it mails you verification of the debt. That written dispute is the single most useful letter in consumer collections — it costs a stamp and it puts the burden back on the collector.

• Send it in writing, not by phone
• Certified mail with return receipt gives you proof
• Ask for the amount, the original creditor, and documentation of the collector's right to collect
• Keep a copy of everything

What collectors are not allowed to do

The FDCPA applies to third-party collectors, and Michigan has its own rules covering collection agencies and regulated collectors. Conduct that generally crosses the line includes:

• Calling before 8 a.m. or after 9 p.m. local time
• Contacting you at work after you tell them not to
• Threatening arrest, or lawsuits they don't intend to file
• Misstating the amount, the creditor, or their legal authority
• Discussing your debt with family, neighbors, or coworkers
• Continuing to contact you after a written cease-communication request (they may still sue)

The Michigan statute of limitations

Michigan generally applies a six-year limitations period to breach-of-contract and open-account claims, which covers most credit card and consumer debt. Judgments are different — a Michigan judgment lasts ten years and can be renewed. The limitations period limits the collector's ability to win a lawsuit; it does not erase the debt or remove it from your credit report.

• Making a payment or acknowledging the debt in writing can restart the clock
• An expired limitations period is a defense you must raise — the court will not raise it for you
• Whether the period has run in your case is a legal question for an attorney

If you're sued

A collection lawsuit starts with a summons and complaint. You generally have 21 days to answer if served in person in Michigan, or 28 days if served by mail — check the dates on your summons, because missing them usually means a default judgment. A default judgment is how most collection cases end, and it is what leads to garnishment.

• Read the summons for your exact deadline
• File a written answer with the court and send a copy to the plaintiff
• Keep proof of filing
• Attend every hearing on the notice

Garnishment after a judgment

With a judgment, a creditor can seek garnishment of wages, a bank account, or a state tax refund. Michigan objections to garnishment are generally due within 14 days of service — a short window. Some income is protected, including Social Security, SSI, and certain public benefits, and federal and state limits cap how much of your wages can be taken.

• Objection to Garnishment is Form MC 49
• Common grounds include exempt funds, the wrong person, or an already-satisfied judgment
• You can ask the court for an installment payment order instead of a garnishment
• Act quickly — the deadline is counted from service

Collections on your credit report

Collection accounts generally remain about seven years from the date of first delinquency on the original account — not from when the collector bought the debt. Paying a collection does not automatically remove it, though many credit scoring models treat paid collections more favorably. Re-aged dates are a common, and disputable, error.

What Clear Path can prepare

We are a document preparation service, not a law firm. We prepare the documents you direct us to prepare and give you filing instructions; we do not give legal advice, do not appear in court, and never promise an outcome.

• Debt validation letters
• Cease-and-desist communication letters
• Credit bureau dispute letters
• Answer to a collection complaint (typed from your information)
• Objection to garnishment (MC 49) and installment payment request