(6) Steps on How to Succeed in Debt Collections in Michigan

Are you tired of wasting time making collection calls?

Are you looking for a collection firm that will aggressively pursue the money you’re owed in an ethical manner?

Do you want results?

Of course you do! We can help you get on the right track! We’re here to tell you the simple steps you can follow to ensure success in debt collections in Michigan. If you don’t want to struggle from month to month paying your business expenses, you must enforce payment rules ahead of time.

Many clients tell us they have problems tracking down their debtors. People who abuse services and flee without paying will likely relocate and try to stay hidden. These are people who had no intention of paying their bill to begin with. At Muller, Muller, Richmond, Harms, & Myers, P.C. we hire experienced and qualified attorneys, staff and investigators who will work hard to find you results.

Step 1: Don’t Wait Too Long to Collect!

According to Michigan debt collection laws, “for most collection actions, there is a specific period of time during which a creditor may pursue the collection of a debt. In Michigan, the filing of a breach of contract and/or open account action, for default of a credit card agreement, for example, must be done within the 6-year Statute of Limitations. MCL §600.5807(8). The relevant date for determining when the six-year Statute of Limitations begins to run is the date of the last activity on the account, whether it be a purchase or a payment made.”

If you run out of time to file a lawsuit against the debtor, you can’t demand payment after the statute of limitations run out. To protect your creditors’ rights, speak to a debt collection attorney in Michigan today who is an expert in the field. 

According to Michigan debt collection laws, “for most collection actions, there is a specific period of time during which a creditor may pursue the collection of a debt. In Michigan, the filing of a breach of contract and/or open account action, for default of a credit card agreement, for example, must be done within the 6-year Statute of Limitations. MCL §600.5807(8). The relevant date for determining when the six-year Statute of Limitations begins to run is the date of the last activity on the account, whether it be a purchase or a payment made.”

If you run out of time to file a lawsuit against the debtor, you can’t demand payment after the statute of limitations run out. To protect your creditors’ rights, speak to a debt collection attorney in Michigan today who is an expert in the field. 

Step 2: Demand Payment in Writing

If your payment is past due, send a registered letter demanding payment. According to AOL Finance, you should include: the date in which “you made the agreement, how much the loan was, how the payments were to be made and when they were to start. and if the other party agreed to pay interest, make sure you detail that information as well.

When closing your letter, make sure to be very clear about what you want and when you want it. My suggestion is that if the borrower breached the contract, you should demand payment in full within 10 days of receipt of your demand letter. Keep your emotions out of it. Stick to the facts and only the facts in your demand letter.”

Step 3: Find a Reputable Attorney to Represent You!

What’s most important to you in a debt collection lawyer?

  • Ethical values

  • Professionalism

  • Experience

  • Results

All four should be important to you when it comes to picking out your lawyer. Established in 1961 by John F. Muller, Sr., we continue to insist on total quality as the guiding principle of our business. We constantly review and update our procedures as we seek new ways of working for our clients.

Since 1961, our top rated lawyers at Muller, Muller, Richmond, Harms, & Myers, P.C. have handled debt collections in Michigan. We’ve tracked down overdue accounts, winning many settlements for our clients along the way. We handle your case with the professional attention it deserves and we’re well prepared to use all our options to collect your overdue debts.

Step 4: Find Appropriate Documentation for Debt Collections in Michigan

Many debt collection cases that go before a judge can be resolved quickly, especially when handled by expert lawyers. Sometimes, however, a debtor will dispute a claim, and it’s important to be prepared if this happens. Having appropriate documentation is essential to resolving debt collection cases in your favor. When you hire collection services, you should be ready with specific documentation that proves you own the debt, how much is actually owed, and how much interest may have accrued.

If you can come prepared with the proof that you have the right to collect and hire a firm like Muller, Muller, Richmond, Harms & Myers, P.C., your chances of putting your debts behind you will greatly increase.

Step 5: Counterclaim Defense

It’s already frustrating for you to try to collect the debts owed to you, but when you’re also dealing with a counterclaim, it can be an even more difficult challenge if you don’t have the resources and power to defend your claims. With our experienced team for debt collections in Michigan, counterclaim defense can be much easier.

We’ve been recognized for expert assistance in various types of counterclaim defenses, including:

  • Aggressive defense of counterclaim actions
  • Affirmative defense strategies
  • Effective discovery techniques (interrogatories, requests to admit, depositions etc.)
  • Effective use of motions to strike and summary judgment
  • Motions to strike inappropriate answers and counterclaims filed by non-lawyers attempting to represent their corporations
  • Direct approaches to resolving counterclaims quickly to keep expenses of counterclaim defense to a minimum

Step 6: Collect on Debt Through Garnishments or Repossessions

How Do Repossessions Work?

How did your customer default on their loan or lease?

  1. Lenders can seize cars without notice if a debtor is in default.
  2. You can keep the car or sell it to satisfy your debtor’s default payments on your loan agreement.
  3. If applicable, your debtor is responsible for the deficiency balance of their loan until the loan is completely paid off.
  4. Your debtor can try buying back the car or the loan may be reinstated.

How Do Garnishments Work?

According to Michigan statutes, “you must wait 21 days after your judgment was signed before you can get a garnishment. There are two types of garnishment: 1) periodic, and 2) non-periodic.

A periodic writ of garnishment is used to garnish the defendant's wages, rent payments, land contract payments, or other debt that is paid to the defendant on a periodic basis. A periodic garnishment is valid for up to 182 days or until the judgment, interest, and costs are paid off, whichever occurs first.

A non-periodic writ of garnishment is used to garnish the defendant's bank account (except for wages that are deposited in the account) or other property. Once money has been garnished under the non-periodic writ, the writ is no longer valid. If there is a remaining balance on the judgment, you must get another writ to collect more money.”

Get Started Today: Our Debt Collections Strategy Development Process

When you hire one of our debt collection attorneys to take your case, we’ll ease your stress by developing a strategy that works best for your unique case. An in-depth analysis and investigation of the facts will help us determine your options.

Part of our debt collections strategy development process involves:

  • Alternative Dispute Resolution
    • Case evaluation
    • Arbitration
    • Mediation
    • Dispute resolution
  • Counterclaim Defense
    • Aggressive defense of counterclaim actions
    • Affirmative defense strategies and discovery
  • Including all the parties involved such as personal guarantors and all entities and persons who can be held liable on your claim

Debt Collections in Michigan: We Fight for Your Creditors’ Rights!

What’s most important to you is also important to us! Being a family business means more than being related, it means that every one of our cases gets dedicated, personal attention, whether your claim is big or small.

Our attorneys are top rated by AV Martindale-Hubbell, AV Preeminent, and Super Lawyers, and they truly care about your case. Our staff is always available for a free initial strategy meeting to build a relationship with you and figure out what you need.

If you’re a business owner, you should be spending your time conducting business rather than chasing down debts. Contact our experienced collection firm for debt collections in Michigan today at (248) 645-2440 for an immediate resolution to your collection matters. Let the experts worry about your collections, so you have more time to focus on growing your business.

Muller, Muller, Richmond, Harms, & Myers, P.C

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