Michigan Small Claims Judgment, Garnishment, and Post-Judgment Rules for Defendants

The 21-Day Window After Judgment

When the magistrate or judge rules against you in Michigan small claims court, enforcement does not start immediately. Under Michigan Court Rules, there is a 21-day stay of execution after a judgment is entered. During those 21 days, the plaintiff cannot garnish your wages, levy your bank account, or seize property.

This window exists so you can pay voluntarily, negotiate a payment plan, or — if the case was heard by an attorney magistrate — file an appeal within 7 days for a de novo rehearing before a judge.

Use these 21 days strategically. If you can pay the judgment in full, doing so avoids garnishment fees and post-judgment interest. If you cannot pay the full amount, file a Motion for Installment Payments (Form MC 15) before the 21 days expire.

How Wage Garnishment Works

After the 21-day stay expires, the plaintiff can request a Writ of Garnishment from the court. For wage garnishment, the writ is served on your employer, who is then required to withhold a portion of your paycheck and send it to the creditor or the court, as the writ directs.

Michigan follows federal garnishment limits. The maximum that can be withheld is the lesser of:

• 25% of your disposable earnings (after taxes and mandatory deductions), or
• The amount by which your weekly disposable earnings exceed 30 times the federal minimum hourly wage.

If you earn below a certain threshold, your wages may be partially or fully exempt from garnishment. The exemption is automatic — your employer applies it when calculating the withholding.

You receive notice of the writ. You can challenge the garnishment by filing an objection within 14 days after service. Once you file an objection, the court schedules a hearing.

Bank Account Levies

The plaintiff can also pursue a non-periodic garnishment on your bank account. The court issues a writ to your bank, which freezes the funds up to the judgment amount. You receive notice and have 14 days to file objections — for example, if the funds are from exempt sources like Social Security, disability payments, or public assistance.

Michigan law protects certain categories of funds from garnishment:

• Social Security and SSI benefits
• Workers' compensation payments
• Unemployment compensation
• Public assistance and welfare payments
• Veterans' benefits

If the account contains a mix of exempt and non-exempt funds, you must raise the exemption promptly by filing objections with the court.

Writ of Execution (Property Seizure)

A Writ of Execution allows the plaintiff to request that a court officer seize and sell your non-exempt personal property to satisfy the judgment. In practice, this is uncommon in small claims cases because the amounts are relatively small (capped at $7,000) and the cost of seizure and sale often exceeds the recovery. But it is legally available.

Michigan exemptions protect certain personal property from execution, including household furnishings, clothing, tools of your trade, and a vehicle up to a statutory value.

Post-Judgment Interest

Under MCL 600.6013(8), interest is calculated at six-month intervals from the date the complaint was filed, not from the date of the original dispute or the judgment. The rate is 1% plus the average interest rate paid at auctions of 5-year U.S. Treasury notes in the preceding six months, as certified by the State Treasurer. It applies to the full judgment amount, including court costs.

Over months or years, interest adds up. A $5,000 judgment at a 4% annual rate accrues roughly $200 in interest per year. Paying sooner reduces the total amount you owe.

Requesting Installment Payments

If you cannot pay the judgment in a lump sum, Form MC 15 (Motion and Affidavit for Installment Payments) lets you ask the court for a structured payment plan. You must file a financial affidavit disclosing your income, expenses, and assets. The magistrate or judge sets a monthly payment amount based on your ability to pay.

Key points about installment orders:

• Form MC 15 may be filed any time after judgment. File it promptly if you need an installment plan.
• The court sets the payment schedule, not you. Propose a realistic amount that accounts for your actual expenses.
• If you miss an installment payment, the order no longer protects you from periodic wage garnishment.
• An installment order does not reduce the total judgment — you still owe the full amount plus accruing interest.

How to Protect Yourself

The best protection against post-judgment enforcement is preparation before the hearing. Strong evidence and organized presentation at trial reduce the risk of an adverse judgment. If you do lose, the 21-day stay gives you time to review your options: pay, request installments, or appeal an attorney magistrate's decision within 7 days. Filing Form MC 15 alone does not stop enforcement; a court-entered installment order protects periodic wages while payments are current.

For a complete step-by-step guide to every phase of a Michigan small claims case from the defendant's perspective, including post-judgment options, see the Michigan Small Claims Response Guide.

See more Michigan guides →