Judgment Collection Attorney — Michigan Post-Judgment Enforcement for Businesses
Collections are a necessary evil in any business. Whether you are sole proprietor or a large corporation with a dedicated collections team, it’s time-consuming and energy-draining. Even if you have taken the necessary steps to obtain a judgment, further action may be needed to actually collect what is owed to you
When a court enters a money judgment in your company’s favor in a lawsuit, it’s often not the end of the struggle to collect. If the other party does not pay up like they’re supposed to, your business may be forced to pursue additional collection efforts. Post-judgment collection efforts are often part of broader business litigation, particularly when debtors resist payment or conceal assets.
If you haven’t hired a lawyer to this point, Head Murphy Law can step in and take over for you. Our skilled business law and collections attorneys will lead the enforcement process to pursue recovery efficiently and strategically, allowing you to get back to business.
Provide us with a copy of the judgment and tell us what you can about what you’ve done so far and what you want to accomplish. Our lawyers will take into account your financial situation and work diligently to collect on the debt you are owed, easing the pressure on you and your company. Contact Head Murphy Law today and let us develop an enforcement strategy to help your business recover what it is owed.
There are various reasons for difficulties when collecting money or assets, such as:
Many unpaid judgments originate from underlying business contract disputes involving vendors, partners, or commercial transactions. These often require persistent and strategic efforts to enforce the judgment. This is where our skills shine. Having one of our lawyers pursue payment of a judgment can free you to focus on running your business rather than splitting your time between managing your company’s operations and pursuing collection efforts.
Obtaining a judgment is only one phase of resolving a business dispute. When payment is delayed, avoided, or obstructed, enforcement actions may require continued litigation to identify assets, challenge transfers, and compel compliance with court orders.
Businesses frequently pursue additional legal action when:
Judgment debtors conceal or transfer assets
Corporate structures complicate recovery
Payment plans fail or are ignored
Fraudulent transfers are suspected
Injunctive relief is needed to preserve assets
Early enforcement strategy helps protect recovery and prevent further financial loss.
When a judgment debtor refuses to pay the money owed on the judgment voluntarily, there are additional remedies available that we can take on your behalf, such as:
In Michigan, judgments can expire if you (the party holding the judgment, known as the judgment creditor,) take no action on it. In most cases, a Michigan court judgment expires in 10 years, though you can file a motion to renew it before it expires.
When a judgment debtor refuses to pay the money owed on the judgment voluntarily, there are additional remedies available that we can take on your behalf, such as:
Although a judgment debtor may not have the cash on hand to satisfy a judgment, they may agree to pay it over time. Negotiating a payment plan or other settlement may help your business collect a judgment more efficiently and cost-effectively than pursuing more aggressive enforcement actions. A settlement may involve a judgment debtor paying off the entire judgment over time, or a judgment creditor may agree to accept a percentage of the total judgment as a lump sum payment as satisfaction of the judgment.
A judgment creditor may pursue garnishment, a court process that authorizes the creditor to collect money owed on a judgment from a third party that controls a judgment debtor’s funds or assets, or from a party that pays money to the debtor, such as a bank or tenant. However, in Michigan, a judgment creditor must wait 21 days before requesting garnishment from the court.
When a judgment debtor fails to satisfy the judgment within 21 days, the judgment creditor may also pursue an order of seizure of property. An order of seizure, also called a writ of execution, authorizes a local or state official, such as a court officer, bailiff, or sheriff, to seize and sell a judgment debtor’s non-exempt property. Michigan law allows officers to seize only a judgment debtor’s personal property. The officer may seize real estate only when the judgment debtor’s personal property does not wholly satisfy the judgment.
A judgment creditor may avoid the more complicated seizure and execution process by filing a judgment lien against a judgment debtor’s real estate. The creditor can file the judgment lien with the court that issued the judgment and record it with the register of deeds. When the real estate undergoes a sale or refinancing, the judgment debtor must pay off the lien to close the transaction. A judgment debtor can also discharge the lien at any time by paying the judgment, which requires the judgment creditor to record a discharge within 14 days. Judgment liens last for five years, but a judgment creditor can only renew the lien once.
Our experienced attorneys help your business by seeking out and uncovering a judgment debtor’s assets and identifying sources of funds through civil litigation. Sometimes an additional lawsuit is necessary to find assets, such as bank accounts and real estate, through interrogatories, document requests, depositions, and subpoenas. There is also a court-ordered creditors’ exam, an additional process that we use to get answers from others about the debtor’s financial affairs. Asset discovery frequently involves formal legal procedures that extend litigation beyond the original dispute.
Forensic accountants may be necessary if fraudulent transfer investigations are needed to track down money or assets that a judgment debtor may have hidden under a subsidiary’s or affiliate’s name or transferring them to third parties.
Other unique considerations that businesses may face when collecting a judgment against another business entity include:
Taking timely action can improve the likelihood of recovery. Businesses should consider:
Gathering documentation related to the judgment and prior collection efforts
Identifying known assets, accounts, or business relationships of the debtor
Monitoring property transfers or operational changes
Evaluating enforcement tools such as garnishment, liens, and discovery
Seeking legal guidance before negotiating payment terms
Strategic enforcement can significantly affect the amount and timing of recovery.
There are many legal complexities to securing payment on a judgment which is why it’s important to have the help of experienced legal counsel. We are not just your lawyers; we are like your business partners who help you protect cash flow, enforce court orders, and stabilize operations.
When you choose the lawyers of Head Murphy Law, you also get:
From our office location in Farmington Hills, we represent clients throughout Michigan with collections on judgments If someone is actively resisting payment of what they owe your business, schedule a free, no-obligation consultation with one of our lawyers. You will be happy you did, and so will your bottom line.
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