Building an Effective Asset List

Winning a judgment in court is a major step — but it's only half the battle. If your debtor isn't paying
voluntarily, you need to locate and pursue their assets to actually collect what you're owed. Once you have a clear picture of their assets, you can move forward with strong collection actions like wage garnishment, bank levies, and "execution" (the legal seizure and sale of a debtor's property).

Building an effective asset list doesn't have to start from scratch. Begin by scouring your own collections file for information you may already have about the debtor, including:

• Home and business addresses
• Bank names and account details (checking, savings, and business accounts)
• Information about significant assets, such as real estate, vehicles, boats, and recreational vehicles
• Place of employment (if the debtor is an individual)
• Professional licenses or business ownership interests
• Any known safety deposit boxes

Learn more in our latest article.

Need More Support? Call Collection Services in Michigan

If you need help tracking down assets or enforcing a judgment, our lawyers can guide you through every step of the process. Get started with our Michigan collection services by calling (248) 645-2440 or by submitting a contact form here.

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.

How ADR Works in Practice

Do you want to explore your options before you take your debtor to court?

In our last blog, we defined alternative dispute resolution (ADR) and when it should be used. In this blog, we’ll give you a quick rundown of how ADR works in practice, along with some practical tips for creditors.

1. Case Evaluation & Selection: The parties (or their attorneys) assess whether the case is ADR-friendly—e.g. clear factual disputes and willingness to compromise.
2. Mediator/Arbitrator Appointment: A neutral third party is selected by agreement or court order.
3. Exchange of Information: Parties may exchange documents to support their claims or defenses.
4. Negotiation or Hearing:
1. In mediation, the mediator helps the parties negotiate a settlement.
2. In arbitration, the arbitrator acts like a private judge and issues a binding or nonbinding decision.
5. Agreement / Award & Enforcement: If the parties agree or the arbitrator issues an award, it becomes enforceable—either by court order or under a contract.

Practical Tips for Creditors

• Include clear ADR clauses in your contracts (these are usually called mediation/arbitration clauses).
• Keep communication and documentation thorough and professional—good records help in ADR.
• Evaluate the cost-benefit: if your claim is small, ADR may resolve it efficiently.
• Engage experienced attorneys familiar with debt and dispute resolution law.

Learn more in our latest article.

Your Go-To Guys for Michigan Collection Services

If you need some help navigating ADR, or if you’re at the end of your rope and ready to take your debtor to court, the Mullers can help! To talk with a collection services expert in Michigan, call (248) 645-2440 or submit a contact form to get started! We’ll make the process easy for you.

What is Alternative Dispute Resolution?

Did you know that there’s more than one way to resolve your collections case?

Alternative Dispute Resolution (ADR) is a general term for things like mediation or arbitration that let disputing parties resolve a claim without going through a full court trial. In Michigan debt-collection cases, ADR offers a faster, more flexible path to agreement for both creditors and debtors.

Courts may order ADR during litigation to encourage settlement, limit costs, and reduce caseload pressure.

Why Use ADR for Debt Collections?

• Cost savings: ADR tends to incur fewer procedural fees than standard lawsuits.
• Speed: A mediated or arbitrated resolution can often conclude faster than waiting for trial.
• Confidentiality: Unlike public court records, ADR processes are often confidential.
• Less adversarial: It encourages cooperation rather than future litigation hostility.

Learn more in our latest article.

Your Go-To Guys for Michigan Collection Services

If you need some help navigating ADR, or if you’re at the end of your rope and ready to take your debtor to court, the Mullers can help! To talk with a collection services expert in Michigan, call (248) 645-2440 or submit a contact form to get started! We’ll make the process easy for you.

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.

Keeping Copies of all Client Material

Why is it important to keep all your customer’s records?

In our last blog, we talked about what notes you need to keep on your clients. Following that, here is a brief description of the copied documentation that you should keep alongside your notes:

1. Copies of all follow-up statements. Your copies should be exactly as they were sent to the debtor, including any markings of “urgent,” “reminder,” “past due,” and so on, so you can demonstrate your persistent efforts to collect the debt without resorting to litigation.
2. Copies of all demand letters and follow-up correspondence. Keep records of all correspondence, no matter how it was sent. Keep copies of letters, emails, faxes, or any other written exchanges.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form. 

Keeping Notes on Your Clients

What are the most important things to keep track of with your customers?

Before an account is delinquent, your records help you avoid confusion and get paid. After an account is delinquent, you’re preparing for litigation, which you hope doesn’t happen. You’ll need detailed notes if litigation comes into play.

Here’s a detailed breakdown of all the notes that you should keep on file:

1. Your customer’s entire credit file. Credit applications, invoices, purchase orders, debit and credit memos, and a ledger summarizing all transactions (a ledger comes in handy when your customer wants to nitpick the account or suddenly develops amnesia when reminded that there’s a balance due).
2. Notes of phone calls made or received, along with dates and responses. If the debtor admits owing the amount due, be sure to include that in your note. Admissions are extremely important if you end up having to go to court.
3. Notes made by employees of your company. Include notes regarding meetings, promises, disputes – anything relating to the account.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.

Dealing with Problem Checks, Part 2

How do you do business with a customer whose check has bounced?

If your customer admits the check isn’t going to clear, even if you deposit it a second time, tell them to send a cashier's check or drop off cash. They can contact an overnight courier (such as UPS or FedEx) and instruct it to pick up the cash or cashier’s check at the appointed time. When you employ a courier, a cashier’s check is preferable to cash.

Don’t forget to tell your staff about the change in the customer’s credit status: anybody who interacts with the offending customer, both at the sales desk and in the credit department, must know that the customer is on cash or its equivalent only.

When a customer makes good on a bad check, you may choose to be forgiving, but only the first time. A repeat offender should be notified that their checks will no longer be accepted. Restrict repeat offenders to cash, money orders, or cashier’s checks.

Read more in our latest article.

Customer refusing to pay? Get help from a Michigan collection service!

If you’re fed up with a customer refusing to pay, the Mullers can help. Our collection services are based in Michigan, but we can help you no matter where you are in the U.S. We can even help internationally! For more information, call (248) 645-2440 or submit a contact form here.

Dealing with Problem Checks, Part 1

What do you do if a customer’s check bounces?

Although you’re filled with joy (and maybe a tiny bit of skepticism) when you hear “the check is in the mail,” you know that checks don’t always clear the bank. You must be diligent and monitor the flow of checks through your business. Everybody receives a bad check now and then, but how you handle it can make a big difference in your cash flow and bottom line.

Receiving a bad check isn’t a small infraction. It’s a major breakdown of the financial relationship and in your ability to trust your customer. Because the extension of credit is based on trust, bouncing a check goes to the core of the business relationship.

Communicate with your customer immediately upon receipt of a bounced check. 

Express in no uncertain terms that the check must be replaced with real money within 24 hours, or you’ll take further action.

Read more in our latest article.

Customer refusing to pay? Get help from a Michigan collection service!

If you’re fed up with a customer refusing to pay, the Mullers can help. Our collection services are based in Michigan, but we can help you no matter where you are in the U.S. We can even help internationally! For more information, call (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.

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.

How to Reduce Risk

Do you want to guarantee payment on a customer’s account, even if they don’t pay?

Consider factoring!

Factoring is when you sell the account receivable at a discount to another company – usually called a factor – for cash.

Instead of insuring your accounts receivable, you may decide to sell them. Your factor determines which accounts receivable it wants to purchase and at what discount. For example, if a customer owes you $10,000, your factor may offer you $9,000 for the account. You get your money when you sell the account receivable regardless of when or if your customer pays. You gain quick payment with no credit risk, but you lose the amount of the discount.

Learn other ways to reduce risk on our website!

Debt Collection Services in Michigan Since 1961!

If you want to use debt collection services in Michigan, your first step is easy. Fill out the information form on our “Contact Us” page, or give us a call at 248-645-2440, to ask questions and figure out your next steps. Don’t let the money owed to you go away- get started today! We look forward to hearing from you.

What Defenses are Used in Contested Lawsuits?

If your client is raising affirmative defenses, it could stand in the way of you getting paid what you’re owed.

The most common affirmative defenses include:

1. Payment 
2. Satisfaction 
3. Discharge 
4. Release 
5. Fraud 
6. Statute of limitations 
7. Void agreement 
8. Failure of consideration 

Learn more here!

Take the First Step! Contact an Attorney for Debt Recovery in Michigan Today!

If you need the help of an attorney for debt collection in Michigan your first step is easy! Fill out the information form on our “Contact Us” page, or give us a call at 248-645-2440, to ask questions and figure out your next steps. We offer a free consultation and strategy meeting, no fees unless you win! Don’t let the money owed to you go away – get started today! We look forward to hearing from you.