Entering a Contract with Your Collector

What kinds of things do you need to agree on with a collections professional?

You want to make sure you have written contracts with your collections professionals. You may enter into contracts on a claim-by-claim basis, or you may sign a contract that defines an overall relationship with your professional, perhaps to be renewed annually. Your contract should include provisions detailing what services you’re using and what they cost so that both you and your professional know exactly where you stand before your relationship begins.

The collection industry is highly competitive, and you can expect competitive rates. You may agree to pay professionals by the service, by the hour, or on a contingency basis, where their fee is a percentage of the amount they recover.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.

The Basics of Contingency Fees

What is a contingency fee?

When you enter a contract with a debt collection professional, there may be a contingency fee agreement. A contingency fee is money that a lawyer only gets if your case is won. A contingency fee agreement should describe:

• When and how amounts recovered are to be remitted: For example, your agreement may require that payments by check be remitted when the debtor’s check clears the bank, or, for a certified check, immediately upon receipt. If the service is collecting multiple accounts, you may choose to schedule payments of remittances (e.g. biweekly or monthly) rather than separate payments for each remittance.
• Costs chargeable to you: If the debt collector charges costs in addition to the contingency fee, the contract should describe what costs may be charged and provide a proper accounting to you. For cases that go to court, expect to pay certain litigation costs like filing fees, deposition fees, and subpoena and witness fees.
• How remittances will be paid: Will your service pay you by electronic transfer, or by ordinary checks delivered by mail or overnight courier?

Before you hire a collections professional, figure out what services you actually need and what each service costs. You can make adjustments as you proceed, but you can avoid unnecessary sticker shock by paying attention to these details before you sign on the dotted line.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.

When in Doubt, Follow the FDCPA

What is the FDCPA, and how can it help you as a debt collector?

Even if you’re not a third-party debt collector, following all the requirements of the Fair Debt Collections Practices Act (FDCPA) can help you avoid violating state laws, some of which impose similar restrictions on all debt collectors.

Commercial debts are not subject to the FDCPA, so generally you’re not restricted by those laws while collecting against commercial debtors. You must still be careful though, because sometimes it’s not immediately clear which debts are commercial and which are for personal or household use. Also, the trend among states is to extend protection against debt collection to all debtors, regardless of the nature of the debt.

It’s wise to follow the FDCPA requirements even when collecting commercial debts. Although following the FDCPA can protect you if you mistakenly believe a personal debt is commercial or when state law is broader than federal law, you’re doing more than following the adage of “better safe than sorry.” For the most part, the provisions of the FDCPA are consistent with good collections practices. They help define and justify collections procedures that can keep your operations both professional and ethical.

Read more in this month’s article.

Get Help from Michigan Debt Collection Services

Have questions about collecting debt, or ready to file a claim? Whatever part of the process you’re at, reach out our Michigan debt collection services at (248) 645-2440 or submit a contact form here.

Play by the Rules when Collecting Debt

What’s the best way to cover your bases when talking to a debtor?

When you work with consumer debtors, you should assume that the debtors are fully aware of their rights and are secretly looking for a way to sue you for violating those rights. Work from the expectation that your debtor is sophisticated:

• Assume that the debtor is keeping notes every bit as good as yours, maybe better. Assume that their records will include dates and times of any phone calls, whether you’re calling at inappropriate times or in a highly repetitive manner (for example, ten calls in a single day), and whether you’ve violated restrictions on communications with third parties, such as their employer.
• If the debtor requests verification of a debt, provide it. Supply the contracts, invoices, and statements underlying the debt. If they request them again, provide them again (and again, and again).
• Make sure that you provide accurate balances for debts. Don’t charge any unauthorized fees or interest rates beyond those permitted by your contract or state law.

Read more in this month’s article.

Get Help from Michigan Debt Collection Services

Have questions about collecting debt, or ready to file a claim? Whatever part of the process you’re at, reach out our Michigan debt collection services at (248) 645-2440 or submit a contact form here.

Staying Professional when Calling Debtors

What’s appropriate to say to a debtor when trying to collect?

When you’re trying to collect money, positive comments and professionalism can go a long way. Particularly for consumer debts, you need to be careful about legal restrictions on when and how you make contact. For example:

• Don’t say you’re going to sue the debtor if you don’t actually intend to file a lawsuit if you don’t receive payment. 
• Don’t talk to third parties about the debtor’s account.
• Don’t threaten or harass a debtor.
• Don’t try to collect debts directly from a debtor who has just filed bankruptcy (see last month’s article).
• Don’t threaten debtors with criminal charges if they don’t pay the debt.
• Don’t contact debtors directly if you know they’re represented by a lawyer in relation to the debt you’re collecting.

The FDCPA and other consumer laws limit the times of day for collections calls, limit the number of times a call may be placed, restrict the people who can be contacted about a debt, restrict what you can do if you’re asked not to call again, and the list goes on. Mistakes can get you sued.

Get more tips for calling debtors in our latest article.

Learn More from a Trusted Michigan Debt Collection Expert

Have questions about Michigan debt collection, or ready to file a claim? Reach out to the Mullers at (248) 645-2440 or submit a contact form here. If you need a second opinion, check out reviews from our clients!

Contacting Debtors via Phone

What’s the best way to get ahold of a debtor?

Although many technologies exist for instant communication, the telephone is still one of the best. A phone call gives you direct and instant communication with no gaps in time. If you reach the desired person on the other end, they can’t complain about missing messages or e-mails. 

Used properly, the telephone can get you paid in many instances where other forms of communication may not. It’s not just a matter of timing. The manner in which you represent yourself and your company can make a big difference in whether your collection call succeeds or fails.

Perfecting Your Telephone Voice

Develop a “telephone voice” that is a bit slower, lower, and louder than your normal voice. This isn’t to be exaggerated. Your telephone voice helps you pace the conversation while allowing your debtor to clearly hear every word you say.

Getting the Correct Person on the Line

The person who answers the phone may not be the person you want to speak with. Use your credit application or other information from your credit file to ask for a specific person who you know has the authority to pay you. When you’ve reached the point of making collection calls, you only want to speak with a person you know to have the actual authority to write a check and put it in the mail right now. After the right person is on the phone, give your name and the name of your business and make a specific request for money.

Get more tips for calling debtors in our latest article.

Learn More from a Trusted Michigan Debt Collection Expert

Have questions about Michigan debt collection, or ready to file a claim? Reach out to the Mullers at (248) 645-2440 or submit a contact form here. If you need a second opinion, check out reviews from our clients!

Avoid Violating Bankruptcy Law

How do you know if sending a statement is violating bankruptcy law?

If a debtor files for bankruptcy and the debt is being handled by the bankruptcy court or has been discharged, you may be in violation of the “automatic stay” (a court order that comes into immediate effect upon the filing of a bankruptcy action, forbidding collection activity against the debtor). You are in violation of the bankruptcy law if you continue to send notices to the debtor. Be sure to stop the notices, including any that are automatically generated by your computerized billing system. Your automated billing system should be set up to allow you to stop the issuance of any further statements to a customer.

After you write off a debt, you may report the amount to the IRS as a tax loss using form 1099-C. You must provide a copy of the 1099-C form to your debtor, and your debtor may be responsible to pay taxes on that amount as income. Your accounting department or financial professional can advise you about the timely filing of 1099 forms and steps to take if your debtor pays a debt that you’ve written off.

Need Help with Michigan Debt Collections?

If you’re struggling to collect debt from a customer, the Muller Law Firm can help execute the collection and make sure you’re compliant with the law. To get help with Michigan-based debt collections, call (248) 645-2440 or fill out a contact form here.

When to Stop Sending Statements

Do you know when to stop sending statements to customers?

Sometimes it makes sense to suspend sending statements to customers. If the customer is out of business or otherwise uncollectible, sending additional statements is often futile. For example, if the customer is out of business and mail is being returned, you can stop sending statements and mark the account as uncollectible. Save yourself the paper and postage. Billing an uncollectible account waste both time and money.

If the customer has been turned over for collection, sending statements may cause confusion. During the collection process, the attorney will make demands for payment using their own letters, forms, and statements. If you send statements of account, that may confuse the customer about how much they owe and where to make payments. After you’ve hired an attorney for an account, your collector will want to receive all payments on that account.

Need Help with Michigan Debt Collections?

If you’re struggling to collect debt from a customer, the Muller Law Firm can help execute the collection and make sure you’re compliant with the law. To get help with Michigan-based debt collections, call (248) 645-2440 or fill out a contact form here.

Outlining Entity Liability

Why is it important to understand what kind of entity you’re lending to?

In the last blog, we discussed five common legal entities you’ll come across when lending credit. Now, we’re going to outline the level of liability for each entity:

• Individual and personal guarantors: A person who applies for credit, or who signs a personal guaranty of payment for another entity, should be evaluated for credit purposes based upon their personal assets and income. In the event of default on the debt, they are personally liable.
• Proprietorships: The owner of a proprietorship is personally liable for any default on credit terms extended. A proprietor is the owner, and the business isn’t a separate legal entity.
• Partnerships: The owners of a general partnership are personally liable for money owed. Although the partnership entity is a legal entity that may stand alone financially, the general partners (owners) are personally liable to you.
• Corporations: When you sell to a corporation, only the corporation is liable for your debt. The shareholders only become personally liable if they sign a personal guaranty. Exercise extreme caution when extending credit to a corporation.
• Other Legal Entities: State laws allow for a wide variety of legal entities and, as you process credit applications, over time you’ll probably encounter most of them. You may encounter joint ventures, a cooperative venture between two or more legal entities, or the professional limited liability company (PLLC). To protect yourself, evaluate these entities in the same way you would evaluate a corporation.

Need Help from Michigan Collection Services?

No matter what entity you’re dealing with, if they’re not paying, we can help you collect. With our firm, you get a comprehensive package of Michigan-based collection services, including international debt and judgement collection. If you have questions or are ready to place a claim, call (248) 645-2440 or submit a contact form here.

Defining Legal Entities

What counts as a legal entity when lending money?

When it comes to credit lending, there are five common legal entities:

• Sole Proprietorship: A business owned and operated by an individual, without limited liability or any of the other features of a corporation.
• General Partnership: A business entity where the owners share personal liability for the debts and obligations of the business.
• Limited Partnership: A form of partnership with general partners, who manage the partnership and are personally liable for its debts, and silent partners, whose liability is limited to the value of their interest in the partnership.
• Corporation: An artificial entity or “legal person” that under normal circumstances shields its owners from liability for its debts. 
• Limited Liability Company (LLC): An entity similar to a corporation that ordinarily shields its owners (usually called members) from liability for the debts of their business.

In addition to the liabilities described for proprietors and general partners, personal liability may also arise in the context of other legal entities. For example, an individual may become liable by:

• Signing a personal guaranty or suretyship agreement.
• Managing a business as a member of a limited liability company on the very rare occasion that the documents creating the LLC require personal liability.
• Continuing to run a corporation that has been automatically dissolved by the state.
• Making purchases on behalf of a company that has not yet incorporated.
• Commingling personal money with business money or thinly capitalizing the business from the start.

Need Help from Michigan Collection Services?

No matter what entity you’re dealing with, if they’re not paying, we can help you collect. With our firm, you get a comprehensive package of Michigan-based collection services, including international debt and judgement collection. If you have questions or are ready to place a claim, call (248) 645-2440 or submit a contact form here.

The Importance of Customer Details

Why is it important to know your customer in detail?

When you extend credit, the type of legal entity you’re extending credit to is key to determining how much credit to grant. From a collection standpoint, there’s a huge difference between lending to an individual, sole proprietorship, corporation, or limited liability company. Many business entities, including corporations, provide a significant shield against collections, allowing their owners or shareholders to avoid any personal responsibility for their unpaid debts.

When you evaluate credit applicants, always require a formal credit application. The information your customer provides on its application makes it clear who the applicant is and the nature of the legal entity involved, which, along with other vital information from the credit application, allows you to properly evaluate the prospect. If the customer refuses to take the time to fill out your credit application from, your credit policy should require you or your designee to contact the customer by phone or in person to obtain that information. You can complete the application form yourself and then have the customer verify, sign, and return the form or acknowledge its accuracy in writing. Even an email acknowledgement is fine.

Learn More with Michigan Collection Services

Don’t be afraid to talk to a collections lawyer! The Muller Law Firm can answer questions about any part of the collections process. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here.

Know Before You Lend

What does your credit lending process look like?

Before extending credit, you should know what type of legal “entity” your customer has chosen. Identifying your customer is just as important as knowing how long the customer has been in business, how much credit they’re requesting, who they’re purchasing from (“trade references”), and who they’re banking with. Generally speaking, with the notable exception of sole proprietorships (where the business and owner are one and the same), a legal entity may:

1. Have separate assets owned in its name
2. Sue and be sued in its own entity name
3. Insulate its owners from personal liability (except for the general partners of a regular or limited partnership)

Find out the differences in the legal entities you’re selling to so you avoid any misunderstandings as to who owes you the payment. Then make sure you’re extending credit to an entity you actually want to have credit terms.

Learn More with Michigan Collection Services

Don’t be afraid to talk to a collections lawyer! The Muller Law Firm can answer questions about any part of the collections process. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here.

The Five Cs of Credit - Part 2

How do you decide whether to give a customer credit or not?

In our last blog, we talked about three out of the five Cs of credit: character, collateral, and capacity. Now we’ll discuss the final two Cs: capital and conditions.

Examining Capital

A company’s net worth is made up of capital that has been paid into it over the years, along with any that has been generated through profitable operations (“retained earnings”). Ideally, you can compare two or three financial statements next to each other to spot trends in net worth. You’re looking for your customer’s net worth to increase each year, meaning that capital is being put into the company—that the company is profitable and is keeping some of its earnings rather than paying them all out of shareholder as salary or dividends, or both.

Reacting to Conditions

An excellent practice to follow when extending credit is to consider the general conditions of your industry, as well as overall economic conditions. Although good customers may pay their bills timely even in poor economic conditions, when industry or general economic conditions take a downward turn you must monitor payment trends for even your best, most reliable customers.

When conditions are good, customers have lots of money and customer demand. Orders are high, and you’re willing to take some additional risk to maximize your profits, so more goods are shipped out on credit terms.

In difficult economic conditions, competition from other companies in your market affects how much risk you’re willing to take. If your goods or services are scarce or unique, you can more easily impose credit terms that better protect your business. The less unique your product, the more you must deal with market pressures that may force you to extend more credit than you’re really comfortable with.

Done Looking for Collection Companies in Michigan?

If you haven’t had luck with other Michigan collection companies, it’s time to partner up with Muller Law Firm! We provide collection services for business-to-business and business-to-client companies, specializing in pre-suit, post-suit, and post-judgment collection.

Fill out a contact form here, or give us a call at (248) 645-2440, to ask questions and figure out your next steps.

The Five Cs of Credit - Part 1

Have you heard of the five Cs of credit?

The five Cs of credit are character, collateral, capacity, capital, and conditions. In part 1 of this blog, we’ll be going over the first three. 

Assessing Character

Whether it’s an individual or a company, your customer exhibits a personality. From a credit prospective, you evaluate your customer’s integrity, particularly in terms of bill paying. Has this customer exhibited integrity in the past? If the customer says the check is in the mail, is it really?

Customers who lack character should be required to provide more proof that they’re worthy of credit. For example, you may require updated financial information every six months or every year or verify their status with outside credit reporting agencies every six months.

Evaluating Collateral

When you take a lien, you stake a claim to certain assets of your customer, and become their “secured creditor.” The property you take the lien against, such as inventory, equipment, or machinery is your collateral. If your customer stops paying its bills, you may pursue the assets that are subject to your lien in order to satisfy their debt.

After you’ve staked your claim to those assets, when your customer stops paying you can either take those items back with the cooperation of your customer or you can seek a court order to take the items back (a process referred to as “claim and delivery” or “foreclosure”) to minimize your losses.

Determining Capacity

“Capacity” is the sufficiency of cash flow to cover debt. The ability of a business to pay debt generally fluctuates depending on budgeting skills and the steady flow of enough cash to cover debts as they mature and become due. Unforeseen expenses can throw a monkey wrench into even the best-laid budgets, so the acid test for capacity is actually whether your customer can generate an adequate cash flow to pay its obligations even with fluctuations in the marketplace, sudden drops in orders from its customers, and similar unexpected difficulties. Part of the answer to this question may lie in the customer’s capacity and willingness to borrow money to supplement cash flow when the purse strings tighten up. What matters to you, though, is whether your company will receive payment even if your customer is having temporary cash flow concerns. 

Done Looking for Collection Companies in Michigan?

If you haven’t had luck with other Michigan collection companies, it’s time to partner up with Muller Law Firm! We provide collection services for business-to-business and business-to-client companies, specializing in pre-suit, post-suit, and post-judgment collection.

Fill out a contact form here, or give us a call at (248) 645-2440, to ask questions and figure out your next steps.

Picking a Reliable Debt Collector

Have you been struggling to find a reliable debt collector?

When you approach a collection professional, they should try to anticipate your needs, asking about the type of business you operate; whether your business is regional, national, or international in scope; who your debtors are (and whether they’re primarily commercial or consumer); and what types of services you’re looking for. If you don’t know what services you need, the collection professional should happily provide you with website links, brochures, and detailed explanations of the services they recommend for your company and what those services cost.

There are several characteristics that mark a reliable debt collector, but recommendations, trustworthiness, and legal compliance are at the top. 

Recommendations: Your debt collector should provide sound recommendations on handling collection files, working with particular debtors, and accepting (or not accepting) settlement offers made by debtors.

Trustworthiness: Can you rely on your collection professional’s advice? Over time, has the advice turned out to be good in maximizing recoveries, or is your debt collector just out for a quick fee?

Legal compliance: Your professional should scrupulously follow state and federal laws.

Get Reliable Service for Michigan Debt Collections

Muller Muller Richmond & Harms, PC is one of Michigan’s leading collection firms, you get efficient collection, reliable results, and peace of mind. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here. We look forward to taking the burden off your hands.

Characteristics of a Good Collection Service

How do you separate good debt collection professionals from mediocre ones?

Here are some signs to look for:

One-Stop Shopping: You don’t want to search all over the country for professionals that provide different kinds of services in different locations. Find a debt collection professional that offers all the services you need in the locations you require, including national or international services.

Bricks, Mortar, and People: Check the debt collector out, perhaps even in person. Ask them questions, and get references who can tell you about their services. What does the service look like? What type of people work there, what computer systems and other technologies do they use in their collection efforts, and how responsive are they to emergencies?

Meaningful Reporting: Whether you want reports on individual collections files or a bulk report listing all the claims you’ve placed with the service, a good professional tailor reports to your needs. When you work with your debt collector, specify the information you can use, not a bunch of fluff reports with information that’s not helpful.

Remittances on Collections: When do you need to receive payment on collected accounts? Collection professionals usually provide remittances on a collection-by-collection basis, but depending on the volume of claims you place, they may be done in batches, once or twice per month.

Good Percentage of Recovery: How often does the collection service settle claims versus colleting accounts in full? If you authorize your collection agency to settle cases for 80 percent of their value, will it settle every case for no more than 80 percent or continue to try to collect 100 percent? Keep statistics for each of your collection professionals and compare their performances over time.

Get Reliable Service for Michigan Debt Collections

Muller Muller Richmond & Harms, PC is one of Michigan’s leading collection firms, you get efficient collection, reliable results, and peace of mind. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here. We look forward to taking the burden off your hands.

A Paper Trail Story

Did you know that proper documentation can save you a whole lot of legal trouble?

Here’s an example: a customer buys $500 of paper plates. The customer received the $500 shipment, but $100 of the product was damaged. Your contract places risk of loss on the customer, so under the terms of sale, it’s the customer’s responsibility to file a claim with the carrier.

But what if it’s determined that the damage was done before the goods left your warehouse and the carrier isn’t at fault? Now you owe your customer a $100 credit. The credit memo should be issued immediately, should specifically refer to the soiled plates, and should include the amount, be dated, and be promptly entered into your billing system. Both the $500 invoice and the $100 credit memo will appear on the customer’s monthly statement.

Now let’s add a complication. During the same billing period, the customer either took an unearned discount or otherwise failed to pay an invoice in full. For example, a prior shipment of plates for $500 resulted in a check for $400. As with the credit memo for money you’re crediting to your customer’s account, you must promptly prepare and process a debit memo showing that $100 shortage so your customer knows exactly where it stands. Your paperwork remains accurate and organized, and you can document every entry on the customer’s statement of account.

Let Us Handle Your Michigan Debt Collections

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country. Let us take on the stress of your Michigan debt collections! Call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

Put Everything in Writing

How thoroughly do you document transactions with your clients?

An old expression, always applicable to billing practices, states, “It isn’t done if it isn’t in writing.” Everything in the billing system must be in writing. This is usually referred to as a paper trail. As a general rule, whoever has the best paper trail wins.

Never include an item on your statement of account that can’t be fully documented. Unexplained items on statements are difficult to impossible to enforce and make your billing system appear disorganized. Your disorganization or lack of documentation will become a huge problem should a customer dispute its balance. As time passes, memories fade and you’ll have to rely on your paper trail.

Let Us Handle Your Michigan Debt Collections

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country. Let us take on the stress of your Michigan debt collections! Call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

Valid Contract or Invalid Contract?

Do you know what makes a contract valid or invalid?

“Consideration” is the bargained-for exchange, value for value. In most business contracts, consideration to the offeror is the promise to pay money for the offered goods or services, and the promise of delivery of those goods or services is the consideration to the offeree. It’s not ordinarily a defense that somebody didn’t negotiate a good bargain as long as an exchange occurred. 

“Mutuality” refers to the fact that both parties are bound to do something, or to permit something to be done, for the contract to be valid. For written contracts, this concept has faded somewhat in modern jurisprudence. It’s now most likely to arise in the context of a claim of an implied contract, where one party claims that a course of conduct or dealing with the other party creates a contract, but the other party denies the existence of a contract. 

“Legality” concerns whether the subject matter of the contract is legal. A modern example involves new national security legislation that forbids the international sale of certain computer technology. A contract for the sale of those chips, even though valid prior to the passage of the new law, could afterward become unenforceable on the basis of its illegality.

Need Help with Michigan Debt Collections?

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. Our law firm can handle your debt collections in Michigan, even if you are located outside the state or country. Call (248) 645-2440 or submit a contact form for an efficient resolution to your collection matters.

Intro to Contracts

Are you familiar with the basics of entering a contract?

The five essential elements to a contract are offer, acceptance, consideration, mutuality, and legality. The process of negotiating a contract starts with the offer, an invitation to enter into a binding contract. The person making the offer is the offeror, and the person receiving the offer is the offeree. 

The contract process starts when the offeror makes an offer to the offeree. Each party offers consideration for the deal, value that supports their promises. If the offeree accepts the offer, the parties mutually agree to the terms of the deal, and if the subject matter of the contract is legal, you have a contract.

“Acceptance” occurs when the offeree states either that the offer is accepted or takes action that indicates acceptance. Typically, you want to accept in an unambiguous manner. If you want to accept an offer but you’re unsure how to do so, simply use the same mode of communication that was used to convey the offer. For example, if the offer came by mail, accept with a letter.

The offeror may limit the amount of time the offer is open. If no time limit is set, the offeree has a reasonable time to accept. An offer usually can be withdrawn (“revoked”) at any time before it’s accepted. Here are two common exceptions:

1. Contractual limitations: your contract requires you to keep the offer open. For example, the offeree pays to keep the offer open for a specified time.
2. Legal restrictions: the law requires you to keep the offer open. For example, certain restrictions are imposed on merchants under the Uniform Commercial Code. 

Need Help with Michigan Debt Collections?

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. Our law firm can handle your debt collections in Michigan, even if you are located outside the state or country. Call (248) 645-2440 or submit a contact form for an efficient resolution to your collection matters.

Voluntary vs Involuntary Bankruptcy

Do you know the difference between voluntary and involuntary bankruptcy?

Some bankruptcies are filed by creditors who gang up on the debtor when payments to those creditors are substantially delinquent. This is referred to as an “involuntary petition.” On the other hand, when the debtor files a petition for bankruptcy, that’s considered “voluntary.” Involuntary bankruptcy can occur under Chapters 7 and 11, but not under Chapter 13.

If you need a summary of Chapters 7, 11, and 13 of bankruptcy, read the latest Learn More article on our website.

Navigate Debtor Bankruptcy with Collection Services in Michigan

Is your debtor filing for bankruptcy?

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country. To protect your creditors’ rights, make use of our collection services in Michigan! Call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

Three Common Bankruptcy Chapters

Are you familiar with the three most common types of bankruptcy?

The most common “chapters” (or types) in bankruptcy are Chapters 7, 11, and 13. A simple explanation of each chapter follows:

Chapter 7, straight liquidation: In a chapter 7 bankruptcy, the debtor’s assets are divided into two categories: exempt and nonexempt.

Chapter 11, business reorganization: Sometimes a business that’s in financial trouble will want to try to stay in business, rather than go through liquidation under Chapter 7.

Chapter 13, wage earner bankruptcy: This form of bankruptcy is similar to a Chapter 11 reorganization but is limited to wage earners or nonbusiness entities.

Navigate Debtor Bankruptcy with Collection Services in Michigan

Is your debtor filing for bankruptcy?

Since 1961, our top-rated lawyers have been dedicated to ethically pursuing the money you’re owed. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country. To protect your creditors’ rights, make use of our collection services in Michigan! Call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

Your Debtor's Customers as an Asset

Are you struggling to get a debtor to pay?

Your debtor’s customers, or other people/entities who may owe money to the debtor, are an asset that can be used in the collection process. This includes: 

• Accounts receivable
• Tenants who may owe rent
• Insurance companies who may owe money for claims, such as any fire damage or flood losses
• State taxing authorities who may owe a tax refund (if permitted in your state; federal tax refunds are off limits)
• Purchasers of your debtor’s business who may still owe money on the purchase prior

When building a list of your debtor’s assets, include anything that appears to be a possible source of money. If you can identify enough assets to make you reasonably sure you’ll be able to collect the money owed to you, great! If not, consider scheduling a creditor’s examination. 

Stop the Struggle with a Michigan Debt Collection Law Firm

Do you need help with any of the steps above?

The lawyers at Muller, Muller, Richmond & Harms P.C. can help. Contact an expert Michigan debt collection law firm by calling (248) 645-2440 or submitting a contact form here.

Building a List of Your Debtor's Assets

Do you know how to build a list of your debtor’s assets?

When your debtor isn’t paying, you need to pursue his assets to collect your judgment. After you have a list of his assets, you can proceed with strong collection actions, including garnishment and “execution” (seizure and sale of a defendant’s assets). Start building your list by scouring your collections file for information you already have about the debtor, including:

• Home and business addresses
• Bank references
• Information about significant assets, such as real estate, vehicles, and watercraft
• Place of employment (if the debtor is an individual)

Have Questions? Call a Michigan Debt Collection Law Firm

Do you need help with any of the steps above?

The lawyers at Muller, Muller, Richmond & Harms P.C. can help. Contact an expert Michigan debt collection law firm by calling (248) 645-2440 or submitting a contact form here.