When your business’s usual methods for collecting its accounts receivable are not producing the results you desire, Michigan law provides several different causes of action which empower the courts to help you get paid for the goods and/or services you rendered.
If the amount you are owed is under $5,500 you can file an action to collect it in small claims court. Getting the process started is literally as simple as filling out a form and filing it with the court. The form itself (which can be downloaded here) contains step by step instructions to help you prosecute your case. For amounts in excess of $5,500, the action must be filed in district court and cases involving debts greater than $25,000 must be filed in circuit court. However, in district and circuit court, if your business is its own separate entity, such as a corporation or LLC, it must be represented by an attorney.
Regardless of which court the action is filed in, your goal is to obtain a judgment against the debtor. This is the instrument you need to enforce the collection of the money you are owed. It provides you with the tools to collect the obligation whether or not the debtor chooses to cooperate. A judgment is good for ten years and can be renewed for an additional ten years, so even if the debtor is not currently in a position to make good on their obligation you know that you are covered for the foreseeable future. Finally, Bowen Law Offices is well versed on turning a judgment into money
To schedule a private consultation with a licensed attorney, call (231) 726-4484 or use the form below.
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