Defendants for Incorporated and Unincorporated Debtors

In our last blog, we went over different types of defendants to look for when you file a lawsuit against
your debtor. Those are applicable to ALL types of debtors; below, we go over a few additional types of defendants that you may find in cases of incorporated and unincorporated debtors.

For unincorporated debtors, such as individuals and partnerships:

• Owners: A proprietor of a business.
• Partners: All general partners of a partnership.
• Persons who hold themselves out as owners: Anybody who claims to be an owner with you when completing credit applications or placing orders with your company.

For incorporated debtors, such as corporations and LLCs:

• Owners of startups: If a debt is owned by a new business, check to see if the corporation was formed at the time of your transaction. If not, for transactions that occur before incorporation, the business should be treated like a partnership.
• Owners of expired entities: If an incorporated business allows its corporate status to expire prior to the dates of your invoices, you can treat the business like a partnership. For example, your customer, Jones Company, Inc. allows its charter to expire in June of 2006 and your invoices are dated 2007 through 2009.

Learn more in our latest article.

Start with Michigan Collection Services

No matter what you need help with, the Mullers are here to walk you through the legal collections process. There are no dumb questions, so don’t be afraid to reach out! If you’d like to know more about using our Michigan-based collection services, call 248-645-2440 or submit an online contact form.

When You Sue Your Debtor, Who Counts as a Defendant?

When you file a lawsuit, include as defendants all people who may be responsible for paying a debt.
Review your credit file for helpful information. It’s best to add all defendants at the beginning of a lawsuit, right when things get going, so that you can get them all served with copies of the lawsuit and reduce the chances for the litigation to drag it out. Among those defendants that should be named are:

• Guarantors: All personal guarantors or co-sureties liable as a matter of contract.
• Successor companies: Companies that have taken over the operations of your debtor, with no significant changes in ownership, capitalization (investment), or other aspects of the business (such as location, phone number, or inventory). For example, your debtor is Sam’s Bike Shop, since renamed as Sam & Sally’s Bike Shop but remaining under the same ownership.
• Issuers of bad checks: Persons or companies that have written checks for payments to you that have failed to clear the bank.
• Individuals who are liable as a matter of law: For example, your state may have a law that holds individuals or companies responsible for certain types of building contract violations, such as taking money from homeowners but not paying suppliers and subcontractors with that money.
• The principal to a contract: Sometimes the person who signs the contract is an authorized agent or employee, and not the person who’s ultimately responsible for payment under the contract. If the principal is undisclosed, you should go ahead and name the agent.
• Beneficiaries of fraud: If the debtor has transferred property or other assets out of his own name to try to hide the assets from creditors, your state’s fraudulent conveyance laws may allow you to sue the recipient of the property.

Learn more in our latest article.

Start with Michigan Collection Services

No matter what you need help with, the Mullers are here to walk you through the legal collections process. There are no dumb questions, so don’t be afraid to reach out! If you’d like to know more about using our Michigan-based collection services, call 248-645-2440 or submit an online contact form.

Why Preparation Matters in Small Claims Court

Have you decided to take legal action against a debtor?

Many creditors assume that having a valid claim is enough. In reality, winning in small claims court requires preparation, organization, and confidence. Judges won’t remind you to present key documents or witnesses — that responsibility falls on you.

Failing to bring documentation, witnesses, or a clear argument can weaken even the strongest cases. Understanding court rules and expectations before your hearing can significantly improve your chances of success.

To learn more about avoiding common litigation mistakes, read our full article.

Take the Pressure Off with Michigan Collection Services

If handling litigation feels overwhelming, we can help. Our experienced Michigan collection attorneys know how to present strong cases and pursue outstanding balances ethically and effectively.

Call 248-645-2440 or fill out our online contact form to get started.

Five Common Litigation Mistakes Creditors Should Avoid

Considering legal action against a debtor?

Even strong cases can fall apart when creditors make avoidable mistakes in court. From misunderstanding who may represent a business to appearing without proper documentation, small missteps can lead to big losses.

Some of the most common litigation mistakes include expecting the judge to guide your case, failing to bring key witnesses, or presenting your claim without confidence. Courts expect preparation — and they expect proof.

Learn more about how to avoid these common litigation pitfalls in our latest article.

Take the Pressure Off with Michigan Collection Services

If handling litigation feels overwhelming, we can help. Our experienced Michigan collection attorneys know how to present strong cases and pursue outstanding balances ethically and effectively.

Call 248-645-2440 or fill out our online contact form to get started.

Two Additional Things to Know About the Michigan Statute of Limitations

Unsure how to pursue payment on old accounts?

In our last blog, we went over three important points of the Michigan statute of limitations concerning debt collection. Here are two additional points:

1. The statute may be revived in a few different ways. A partial payment can reset the clock, even if the SOL has long passed.  The legal term for an action that restarts the statute of limitations is a NOVATION. Under most state law, the partial payment could toll the statute all over again as of the date of payment.
2. You may still have a legal case on a very old debt. Our Michigan collection services can assist you in determining the best course of action for your company.

A little bit of information can go a long way; knowing more about your rights to pursue payment you’re owed can help turn hesitation into action. These facts should help you make some decisions on old, open accounts you’ve had on the back-burner for a while.

Learn more in our latest article.

Take the Pressure Off with Michigan Collection Services

If you find that taking action on several outstanding accounts is more than you can handle on your own, we can help! Our attorneys have the tools to get the job done effectively and ethically. Call 248-645-2440 or fill out our quick online contact form to get started!

Three Things to Know About the Michigan Statute of Limitations

Worried about old, overdue balances on the books?

Old overdue accounts should be turned over to Michigan collection services as soon as possible to avoid having your account eliminated by the statute of limitations. Here are the five things you should know about Michigan SOLs on debt.

1. As a creditor, the statute of limitations sets the time period for you to take legal action against a debtor.
2. The statute of limitation is six years for most written or oral contracts. The countdown does not begin until the customer misses the first payment or defaults on the terms of the contract. The statute could be renewed when a new payment is made.  
3. If your agreement or contract with your customer was for the sale of goods, you would normally only have four years to start a legal action to recover on the outstanding balance.

Learn more in our latest article.

Take the Pressure Off with Michigan Collection Services

If you find that taking action on several outstanding accounts is more than you can handle on your own, we can help! Our attorneys have the tools to get the job done effectively and ethically. Call 248-645-2440 or fill out our quick online contact form to get started!

Preparing a Script for a Collections Call

Unsure how to best prepare for a successful collections call?

Your collection phone calls adhere to a simple pattern: you identify yourself and request payment from the debtor. You don’t need to have a complicated script on hand, anticipating every response and scenario, but you should have your basic collections request scripted.

Your script opens with, “This is [your name] from [company name] calling for [debtor name].” Never disclose that you’re seeking money until you have the intended person on the phone. You want to be sure that the person you’re speaking with can authorize payment of your bill.

After the debtor answers the phone, repeat your name, the name of your business, and make a specific request for money. Here’s an example: “This is Tom Smith calling from the ABC Company in Birmingham, Michigan. We show a balance of $2,500 that is 60 days past due, and I’m calling to request payment of that sum. Can you send us payment today?”

We hope that these tips help you feel more confident during your collections call! But if you need help…

Learn more in our latest article.

Call the Michigan Debt Collection Experts

If your debtor is uncooperative, or even if you just don’t want to make the call yourself, our attorneys can handle it all for you! As long as either you or your debtor are in Michigan, we can handle your debt collection. 

To get in touch, call (248) 645-2440 or submit a contact form. We look forward to working with you!