Don't Forget Debit Memos

Suppose a customer submits a payment that's $100 short — maybe they took an unauthorized discount
or overlooked part of the balance. Just as credits should be documented, so should shortages.

Prepare a debit memo showing:

• The invoice involved
• The amount still owed
• The reason for the adjustment
• The date the shortage was identified

This creates a complete account record and ensures the customer understands how the outstanding balance was calculated.

Avoid Unexplained Entries

One of the most common mistakes businesses make is posting adjustments without sufficient explanation. Every item on a statement should be supported by documentation. If an adjustment can't be explained and verified, it may be difficult — or impossible — to enforce later. Unexplained entries also damage your credibility. Customers are far more likely to challenge invoices when records appear incomplete or disorganized. Good documentation builds trust while protecting your legal rights.

Learn more in our latest article.

We’re Your Michigan Collection Company!

Our Michigan collection company has offices in Birmingham and Grand Rapids, we represent clients throughout Michigan and assist creditors across the United States and around the world. If you're dealing with unpaid accounts, disputed balances, or difficult collection matters, contact us at (248) 645-2440 or submit a contact form to discuss your options. We're here to help you pursue the money you're owed — efficiently, ethically, and effectively.

Why Documents Matter

Every transaction involves orders, shipments, payments, credits, and adjustments — and each should be
documented promptly. Without proper records, even minor discrepancies can become major collection issues. Customers forget details, employees leave, and memories fade. Written documentation preserves the facts long after the transaction occurs. In most disputes, the party with the most complete records is in the strongest position.

A Common Example

Say a customer buys $500 worth of paper plates, but $100 worth arrive damaged. Your sales agreement says the customer assumes risk once goods are delivered to the carrier — meaning they file the claim if damage happens in transit. But if an investigation shows the damage occurred before the plates left your warehouse, your company owes a $100 credit.

The proper response is to create a credit memo immediately, clearly identifying:

• The damaged products
• The amount being credited
• The date of the adjustment
• The related invoice number
• Any supporting notes explaining the reason

Enter the credit into your accounting system without delay so it appears accurately on the customer's statement.

Learn more in our latest article.

We’re Your Michigan Collection Company!

Our Michigan collection company has offices in Birmingham and Grand Rapids, we represent clients throughout Michigan and assist creditors across the United States and around the world. If you're dealing with unpaid accounts, disputed balances, or difficult collection matters, contact us at (248) 645-2440 or submit a contact form to discuss your options. We're here to help you pursue the money you're owed — efficiently, ethically, and effectively.

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.

Learn more in our latest article.

Creditors Can Trust Michigan Collection Services

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 make use of our Michigan collection services, call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

Bankruptcy: Chapters 7, 11, and 13

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: A debtor’s exempt assets are protected in whole or in part from being taken to pay creditors. For example, exemptions protect formal retirement accounts, Social Security benefits, home equity, and some personal property. The rules of exemption are a bit tricky – exemption can be capped at different levels based on state law, and eligibility for an exemption may also depend on how long the debtor has owned the asset.
• Nonexempt: The debtor’s nonexempt assets are sold, or liquidated, and the cash proceeds are given to the bankruptcy trustee for distribution to creditors (the trustee being an individual appointed by the court to oversee that process).

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. The bankruptcy court allows the company to stay in business and to remain in possession and control of its assets, while implementing a plan to repay creditors based on the debtor’s assets and income.

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. An ordinary individual or married couple with regular income, whose unsecured debt isn’t outrageous, can file Chapter 13 and enter into a repayment plan very similar to the plan described for Chapter 11. 

Read more in our latest article. 

Creditors Can Trust Michigan Collection Services

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 make use of our Michigan collection services, call (248) 645-2440 or submit a contact form for an effective resolution to your collection matters.

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.

Dealing with Difficult Debtors: Screaming and Crying

Is your debtor making business exceptionally difficult to conduct?

Debtors come in all shapes, sizes, and personalities. If you’re lucky, your customer will be polite and apologetic. However, it’s more realistic to think that you’ll encounter unpleasant behaviors. Here are two common difficult behaviors:

Screaming

Some debtors can become enraged to the point of screaming at you over the phone. You must remain calm and remember your ultimate goal: to collect payment. Some screamers calm down if you request permission to speak. If the screamer grants you permission, state the case for payment without any sign of emotion or attempt at intimidation. Describe their account balance and make a specific request for payment.

Crying

This type of debtor wants your sympathy and makes every effort to make you feel sorry for them by using illness, divorce, a death in the family, accidents, and other life altering events to pull at your heartstrings. Don’t fall for it!

Remain calm and composed, giving a response like, “I can certainly appreciate how you feel; however, we have business at hand and must resolve this outstanding balance.” You should demonstrate that you listened to what the crier was saying, but at the same time continue demanding payment.

Learn more in our latest article.

Need Help? Enlist Expert Michigan Collection Services!

If trying to collect from you debtor has gotten out of control, it’s time to call in the pros.

The Mullers offer collection services in Michigan, meaning that if you or your debtor are in Michigan, we can help! Call (248) 645-2440 or submit a contact form here to get started. We look forward to taking collections off your plate and getting you the money you’re owed.

Dealing with Difficult Debtors: Arrogance and Selective Memory

Are you having trouble dealing with your debtor’s personality?

You should know the best way to respond to the most common unpleasant personalities in order to get the best outcome out of your collection calls. Here are two of the most frustrating personality traits:

Arrogance

Some debtors think they are a lot smarter than you. In this case, your debtor will offer all sorts of explanations for nonpayment, and may have even convinced themselves that they don’t owe you any money. To keep the call under your control, respond calmly and persistently, point by point, with the facts that refute your debtor’s allegations. Don’t let your temper escalate with each point.

Selective Memory

This debtor claims that they don’t recall making their purchase, and don’t recall making a commitment to paying the bill. Your job is to remind your debtor that commitments were made on specific dates for specific amounts of money. By producing a document for every denial, you can successfully overcome your debtor’s selective memory. This is where keeping detailed documents proves invaluable.

Learn more in our latest article.

Need Help? Enlist Expert Michigan Collection Services!

If trying to collect from you debtor has gotten out of control, it’s time to call in the pros.

The Mullers offer collection services in Michigan, meaning that if you or your debtor are in Michigan, we can help! Call (248) 645-2440 or submit a contact form here to get started. We look forward to taking collections off your plate and getting you the money you’re owed.

Why You Should Have Tighter Controls on New Customers

Are you worried about customer loyalty?

When you first extend credit, your new customer knows they’re being monitored. For that reason, in most cases they’ll pay the first few invoices on time. After that point, some customers decide that they can relax and pay less promptly because they’ve already earned your respect and are no longer under the microscope, and their payments may start slowing.

In order to collect on a debt, you need to be able to identify exactly who your debtor is – such as a partnership, a corporation, or a limited liability company. This is not always easy! This process can be long and complicated, especially if your debtor is using multiple names and/or locations.

Learn more in our latest article.

Hire a Michigan Commercial Collections Attorney Today!

To protect your creditors’ rights, contact an experienced attorney for commercial collections in Michigan at (248) 645-2440 or via contact form for an effective resolution to your collection matters. Let the experts worry about your collections, so you have more time to focus on growing your business.

Four Ways to Implement Tighter Controls on New Customers

Are you finding it challenging to get new customers to pay on-time?

To protect yourself, you may choose to adopt some of the following controls:

1. Put the customer on a short leash, such as a 15-day watch list, so you detect a slowdown in payments almost immediately.
2. Be ready to turn off the credit faucet: no credit if no payment.
3. Hold up further deliveries of your goods or services until the customer pays his late invoices.
4. Get additional assurance of payment, such as liens, guarantees, and promissory notes.

Learn more in our latest article.

Hire a Michigan Commercial Collections Attorney Today!

To protect your creditors’ rights, contact an experienced attorney for commercial collections in Michigan at (248) 645-2440 or via contact form for an effective resolution to your collection matters. Let the experts worry about your collections, so you have more time to focus on growing your business.

Monitoring a Payment Plan

Have you set up a payment plan with a debtor?

When your debtor is short of cash and can’t pay off the entire debt at once, setting up a payment plan makes a lot of sense. But after you have the payment plan in hand, how do you keep the payments coming in?

After you set up a plan where the debtor is to pay off the account in installments, you should closely monitor the account, watching for any sign that the debtor is falling behind again. After the payment plan is implemented, remind the debtor that you expect all installments to be paid on time. 

But what do you do if the debtor misses a payment? Once again, the account is delinquent, and you certainly don’t want to go back to square one. As long as you actually intend to file a lawsuit if the debt isn’t paid, this is the time to threaten litigation.

Read more in our latest article.

Need a collection company that operates in Michigan?

You’re in the right place!

Your money is our #1 priority. If your or your debtor live in Michigan, our collection company can help! Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.

Effective Reminders for Debtors on Payment Plans

How can you make sure your debtor doesn’t fall behind on a payment plan? 

After you set up a plan where the debtor is to pay off the account in installments, you should closely monitor the account, watching for any sign that the debtor is falling behind again. After the payment plan is implemented, remind the debtor that you expect all installments to be paid on time. 

Here’s how you can remind your debtor effectively:

• Send statements to the debtor in advance of each payment due date. Restate the due date, amount due, and remaining balance.
• Place reminder phone calls/emails. Remind the debtor that you expect all installments to be paid on time.

Read more in our latest article.

Need a collection company that operates in Michigan?

You’re in the right place!

Your money is our #1 priority. If your or your debtor live in Michigan, our collection company can help! Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.