Best Michigan Judgment Collection Tool When the Debtor Won't Pay

The Direct Answer

If a debtor is ignoring a Michigan small claims judgment and you believe they have wages, a bank account, or property worth pursuing, the strongest first move is a debtor examination (Form MC 11) followed by targeted garnishment. A self-help guide that maps the forms, fees, and deadlines is the most cost-effective way to execute that sequence when the judgment is under $7,000. Attorneys and collection agencies cannot participate in a Small Claims Division case, including postjudgment proceedings (MCL 600.8408(1)); an attorney may represent a party if the case was removed to the General Civil Division before trial. A collection agency can handle out-of-court collection contacts, but a small claims judgment cannot be assigned to it (MCL 600.8407(1)).

Your Four Options

Option 1: Self-Guided Enforcement with a Step-by-Step Guide

You handle every filing yourself using the SCAO forms, with a guide providing the sequence, fee calculations, and compliance tracking.

Best for: Judgments under $7,000 where the debtor has identifiable assets (a job, a bank account, property). Attorneys are prohibited from participating in a Small Claims Division case, including postjudgment proceedings, so you are representing yourself — a guide just organizes the process.

Cost: The guide itself is a one-time purchase. Court costs run $15 per writ filing plus statutory disclosure fees ($35 for wage garnishments, $1 for bank garnishments, $6 for tax refund intercepts). These filing costs are recoverable from the debtor through the sworn balance on Item 2 of the writ.

Limitation: If the debtor files objections to a garnishment or claims exemptions you do not understand, you must handle the Small Claims Division proceeding yourself; an attorney cannot represent you in that case.

Option 2: Hiring a Collection Attorney

An attorney may file enforcement motions and appear for you if the case is in the General Civil Division. An attorney cannot participate in a Small Claims Division case, including postjudgment proceedings.

Best for: A matter in the General Civil Division where the debtor is fighting garnishments, claiming exemptions, or filing motions to modify the judgment. In a Small Claims Division case, you must handle postjudgment proceedings yourself.

Cost: Michigan collection attorneys typically charge $200–$400/hour or work on contingency (33–40% of the amount collected). For a $3,000 judgment, contingency means the attorney keeps $1,000–$1,200 if they collect the full amount.

Limitation: MCL 600.8408(1) prohibits attorneys from participating in Small Claims Division cases, including postjudgment proceedings. A party may remove a case to the General Civil Division before trial, where attorney representation is allowed.

Option 3: Hiring a Collection Agency for Out-of-Court Collection

You hire a licensed collection agency for out-of-court contacts with the debtor. Small claims judgments cannot be assigned, and collection agencies cannot participate in Small Claims Division proceedings (MCL 600.8407(1), 600.8408(1)).

Best for: Situations where you have no idea where the debtor works or banks, you want out-of-court collection contacts, and you are willing to accept a fraction of the judgment.

Cost: Agencies take 25–50% of whatever they collect. On a $5,000 judgment, that is $1,250–$2,500 off the top. Many agencies also charge an upfront fee of $50–$200 for small claims judgments, which you do not recover if they fail to collect.

Limitation: A collection agency or its agent cannot participate in Small Claims Division litigation, including postjudgment proceedings. You must file and pursue court enforcement yourself.

Option 4: Doing Nothing (Waiting for Voluntary Payment)

You do nothing and hope the debtor eventually pays.

Best for: Honestly, almost nobody. But there is one scenario where waiting has strategic logic: when the debtor is currently judgment-proof (no job, no bank account, no non-exempt property) and you believe their situation will change within the 10-year enforcement period. Michigan money judgments last 10 years under MCL 600.5809(3) and can be renewed for an additional 10 years if renewed before expiration.

Cost: Free, but you earn nothing while the debtor's assets may be depleting.

Limitation: The debtor has no incentive to pay voluntarily. The major nationwide credit bureaus removed civil judgments from consumer credit reports in 2017. A collection agency may separately report a collection account after following required contact and reporting rules.

Comparison Table

Who This Is For

• You won a Michigan small claims judgment of up to $7,000 and the debtor has not paid after the 21-day waiting period
• You believe the debtor has a job, a bank account, or property that could satisfy the judgment
• You want to keep as much of the judgment as possible rather than surrendering a percentage to an attorney or agency
• You are willing to do the filing yourself if someone shows you which forms, in which order, with which fees

Who This Is NOT For

• The debtor has already filed bankruptcy (an automatic stay halts all collection)
• Your judgment is from the General Civil Division (above $7,000), where the procedures and forms differ
• You need someone to negotiate a settlement — a guide walks you through enforcement, not negotiation
• The debtor is in another state — Michigan garnishment forms only reach assets and employers within Michigan's jurisdiction

The Math That Matters

On a $5,000 judgment, here is what you keep after costs:

• Self-help guide + direct enforcement: $5,000 minus ~$80 in court fees (recoverable from the debtor) = up to $5,000
• Collection attorney on contingency: $5,000 × 65% = $3,250
• Collection agency: $5,000 × 60% = $3,000
• Doing nothing: $0 until the debtor decides to pay

The Collecting a Small Claims Judgment in Michigan guide walks you through the full enforcement sequence — from the 21-day waiting period through debtor examination, garnishment, seizure, liens, and case closure.

Frequently Asked Questions

Can I start with the guide and hire an attorney later if I get stuck?

For a Small Claims Division case, an attorney cannot participate, including in postjudgment proceedings. If the case was removed to the General Civil Division before trial, you may hire an attorney to represent you there.

How long does it take to collect with self-guided enforcement?

It depends on the debtor's assets. Withheld wage payments can begin being forwarded after 28 days from service, depending on the pay schedule and any objection. Bank account garnishment attaches to funds held when the bank receives the writ; payment may be made after 28 days absent an objection. The full process — from debtor examination through final satisfaction — can take anywhere from two months to a year.

What if the debtor has no assets at all?

If the debtor is unemployed, has no bank account, and owns no non-exempt property, they are "judgment proof." No guide, attorney, or agency can collect from someone who genuinely has nothing. The guide includes a debtor exemption checklist so you can screen for this before spending money on writ filings. Michigan money judgments last 10 years and can be renewed for an additional 10 years if renewed before expiration, so you can wait for the debtor's situation to improve.

Does a collection agency have more power than I do?

No. A collection agency can handle out-of-court collection contacts, but it cannot participate in Small Claims Division litigation, including postjudgment proceedings. You, as the judgment creditor, must file and pursue any court enforcement.

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