Legal Reference Blog by Renee C. Walsh, Attorney

27. April 2009: A creditor has sued me, how do I stay out of court?

Question:

I was approved for two credit cards from XXX, both obtained to purchase a TV in October of 2007. One card was around a $1,000 limit and the other card was around a $500 limit. I had to get two credit cards to afford the total cost of the TV and a warranty. I lost my full time job soon thereafter and fell behind several months on payments. When I got a part-time job in July of 2008, I went to pay off some of the amount on the bigger credit card. The online payment service was suspended. I lost my part-time job soon thereafter thanks to a lay-off, and haven't made any payments on either credit card. I received one or two letters from the debt collectors and didn't think I would be sued. Well, it turns out I that I am. I know I'm an idiot for getting myself into this situation, and I know I owe them the money and have to pay it back. I owe $X and have have about three weeks to file a written answer with the court and serve a copy on the other party. ...More

23. April 2009: Garnishment

Michigan codifies the statutory law on garnishment and attachment at MCL 600.4001 et seq. and the procedural rules for handling a garnishment at MCR 3.101. Garnishment allows a creditor who has procured a judgment to take or attach property of the debtor that is held by someone other than the debtor (the garnishee) as payment. The debtors wages and bank accounts are commonly garnished. ...More

21. April 2009: Collecting on a Judgment - General Information

After fighting the battle to win the lawsuit, a new battle to collect the monetary award must be commenced. The commencement of this subsequent battle must await the appeal period (MCR 2.614(A)(1), 7.101(H)(1)(a)) and/or 21 days after resolution of any motion for a new trial, for rehearing or reconsideration, or for other relief from judgment (MCR 2.614(A)(1)). Manipulating these rules allows debtors the opportunity to delay collection. There is also a stigma with some judges who view collections with negativity and may not enforce the rules that permit creditors to collect. ...More