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 on Debt Collection? SmithMarco, P.C. can help. Call 888-822-1777 or contact us here for a free consultation.
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