Alliance Settlement helps Michigan residents negotiate unsecured debts like credit cards, personal loans and medical bills down to an amount they can afford. Before you decide, it helps to know how Michigan handles lawsuits, garnishment and old debts.
| Michigan debt facts at a glance | |
|---|---|
| Statute of limitations (credit cards) | 6 years |
| Wage garnishment for consumer debt | Federal 25% limit |
| Notable protection | Collection practices law |
Credit card debt and the statute of limitations in Michigan
Michigan's statute of limitations on credit card debt is 6 years. Keep in mind the clock limits lawsuits, not collection calls or credit reporting. Before paying on an old account, find out whether it's past the deadline.
What Michigan creditors can take from your paycheck
Michigan follows the federal limit of 25% of disposable earnings. Garnishment requires a court judgment first, which is one reason resolving debts before a lawsuit matters.
Other Michigan consumer protections
Michigan regulates collection practices and licenses debt management providers.
How debt relief companies are regulated in Michigan
Michigan licenses debt management providers through the Department of Insurance and Financial Services. Under federal rules, debt settlement companies that sell services by phone can’t charge fees until they’ve settled or changed at least one of your debts and you’ve made a payment under that agreement. Ask any company how it is licensed or authorized to serve Michigan residents, and get every term in writing.
How debt settlement works with Alliance Settlement
- Review. We look at your unsecured debts and your monthly budget.
- Plan. We design a program around what you can realistically set aside.
- Negotiate. We approach your creditors with settlement offers as your savings grow.
- Finish. Accounts are settled one by one until your enrolled debts are resolved.
Settlement isn’t right for everyone. It can affect your credit and may have tax consequences on forgiven amounts. Learn more in does debt settlement hurt your credit?, or get a free consultation.
Frequently asked questions
How long can a creditor sue me for credit card debt in Michigan?
Michigan's statute of limitations on credit card debt is 6 years. The statute of limitations limits how long a creditor can sue; it doesn't erase the debt or remove it from your credit report, where negative items generally stay up to seven years.
Can my wages be garnished for credit card debt in Michigan?
Michigan follows the federal limit of 25% of disposable earnings.
Will debt settlement hurt my credit?
Usually yes at first, mostly because of missed payments during the program, but scores often begin to recover after accounts are resolved. Read our guide: does debt settlement hurt your credit?
Does Alliance Settlement work with Michigan residents?
Yes. Alliance Settlement works with clients throughout Michigan, including Detroit, Grand Rapids, Lansing and Ann Arbor, by phone and online.
This page provides general information, not legal or tax advice. Laws change; consult a qualified professional about your situation.