Michigan Installment Payment Orders: What Judgment Creditors Need to Know

When the Debtor Asks to Pay in Installments

You've got a judgment. You're ready to garnish wages. Then you get notice that the debtor filed Form MC 15 — a Motion and Affidavit for Installment Payments.

This is one of the more frustrating moments in Michigan judgment collection, because an installment order can stop your wage garnishment cold. But it doesn't leave you powerless. Understanding how the process works — and where you can push back — makes a real difference.

How Form MC 15 Works

Under MCL 600.6201 and MCR 3.104, any judgment debtor can file Form MC 15 with the court. The form requires the debtor to lay out their income, expenses, debts, and a proposed monthly payment amount. There's a $20 filing fee.

The debtor sends you a copy of the completed MC 15. From the date it's mailed, you have exactly 14 calendar days to file written objections.

If you don't object within 14 days, the court enters an installment payment order (Form MC 15a) automatically — no hearing, no argument. The proposed payment schedule becomes a court order.

Your 14-Day Window to Object

This deadline matters. Once an installment order is in place, it suspends any active or pending periodic wage garnishment (Form MC 12) while the order remains in effect. That's a significant enforcement tool taken off the table.

To object, file written objections with the court and serve them on the debtor within 14 days after Form MC 15 is mailed. Explain why the proposed payment amount is inadequate or why the debtor's financial disclosure is inaccurate.

Common grounds for objection:

• The proposed amount is too low. If the debtor earns $4,000/month and proposes $50 payments on a $5,000 judgment, the math doesn't add up given their stated expenses.
• The financial disclosure is incomplete or inaccurate. The debtor left out income sources, underreported assets, or inflated expenses.
• The debtor has available assets. A debtor with a bank account balance or non-exempt property shouldn't be paying $25/month when a single garnishment could resolve the judgment.

When you file an objection, the court decides the motion based on the papers or notifies the parties if a hearing is required. The judge can then set a payment amount based on the debtor's financial situation.

What an Installment Order Does and Doesn't Block

This is the critical part most creditors miss:

An active installment order suspends wage garnishment (MC 12) while the order remains in effect. If the debtor misses a payment, you must ask the court to set aside the order before resuming periodic garnishment.

An installment order does NOT automatically stop:

• Bank account garnishment (MC 13) — unless the judge specifically orders it
• Property seizure (MC 19) — unless the judge specifically orders it
• Recording a judgment lien (MC 94) — an installment order never prevents this

So even if the debtor gets an installment order, you can still pursue nonperiodic garnishment of bank accounts and record judgment liens on real property. These tools remain available unless the judge's specific order says otherwise.

When the Debtor Misses a Payment

If the debtor falls behind on the court-ordered installment schedule, file Form MC 16 (Motion to Set Aside Order for Installment Payments) with the court. The motion has a $20 fee and must be mailed to the debtor; if the debtor does not request a hearing within 14 days after it is mailed, the order may be set aside. Once the court sets aside the order, you can request a periodic garnishment again.

In practice, keep careful records of every payment received — dates, amounts, method. The moment a payment is late, you're in a position to act.

Strategic Considerations

Sometimes accepting a reasonable installment arrangement is the smarter path. If the debtor's income is low enough that garnishment would only capture the minimum amount anyway, an installment order that matches or exceeds that withholding rate costs you less in court fees and process server charges.

But if the debtor's proposal is unreasonably low relative to their means — or if you have reason to believe they're hiding assets — use the 14-day objection window to challenge the proposed payment schedule before it becomes an order.

The Michigan Judgment Collection Guide walks through each enforcement tool, including how installment orders interact with garnishment, property seizure, and judgment liens — so you can decide which combination of tools makes sense for your specific situation.

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