Debt Collection Problems

Debt Collection Laws

Michigan Statute of Limitations on Debt Collection

Many consumers in the state of Michigan are dealing with unpaid bills, and piling up debt.  When debts go unpaid for a long period of time, creditors may decide to institute a lawsuit against the consumer so that the creditor can obtain a judgment.  A judgment provides the ability to collect money involuntarily through wage garnishments or seizures of bank accounts or other property. 

In most cases, creditors that are owed money will file a lawsuit for a breach of contract.  The statute of limitations, or the period of time within which legal action may be brought, in Michigan for a breach of contract  is 6 years (MCL 600.5807(8)),

Once the creditor is successful in this lawsuit (which the consumer has the right to defend) the creditor has a "judgment."  A judgment can be collected on for as long as 10 years from the date the judgment was entered.  A debtor must be aware that judgments may be renewed by action on the collector's behalf for an additional 10 years (MCL.600.5809(3)).

NOTE: Another state's limitation period may apply check statutes carefully.

Have more questions about Michigan Statue of Limitations? SmithMarco, P.C. can help. Call 888-822-1777 or contact us here for a free consultation.