Michigan Small Claims Court for Unpaid Invoices: How to Sue and Collect

An unpaid invoice sits in your inbox for 60, 90, 120 days. The client stopped replying weeks ago. You did the work, you sent the bill, and now the money just isn't coming. Michigan's Small Claims Division handles exactly this kind of dispute — claims up to $7,000, no lawyer required, and filing fees between $30 and $70.

Send a Written Demand First

Before filing anything, send a formal demand letter by certified mail with return receipt requested. State the exact amount owed, attach a copy of the invoice and any signed contract or written agreement, and set a payment deadline of 10 to 14 days. Michigan doesn't legally require a demand letter for most contract claims, but judges consistently view them favourably — it shows you tried to resolve things before taking up court time.

Keep the tone factual. Mention that you'll file in small claims court if payment isn't received by the deadline. Save a copy of the letter, the certified mail receipt, and the tracking number.

Filing Your Claim

You'll file SCAO Form DC 84 (Affidavit and Claim, Small Claims) in the district court where the defendant lives or does business, or where the work was performed. Filing fees are based on the amount you're owed:

• Up to $600: $30 total ($25 base + $5 electronic filing fee)
• $600.01 to $1,750: $50 total
• $1,750.01 to $7,000: $70 total

On the form, write a clear, factual description: what services you provided, when, the agreed price, and the amount still unpaid. Attach your contract, invoices, and any emails confirming the work was completed and accepted.

Getting the Defendant's Name Right

This is where unpaid invoice cases frequently go wrong. If you did work for an individual, name them personally. If you invoiced a business, you need the exact legal entity name — not a trading name or website brand.

Search the Michigan LARA Business Entity Search for the correct corporate or LLC name and the registered agent's address. If the business is a sole proprietorship operating under an assumed name, the proper format is "Jane Doe d/b/a Acme Design." Suing the wrong entity means your judgment is unenforceable even if you win.

The Five-Case Limit for Businesses

Michigan law caps business plaintiffs at five small claims filings per week per district court under MCL 600.8401. If you're a freelancer or sole proprietor who regularly files collection actions, track your filings to stay under this ceiling. The limit resets weekly, not monthly, so it rarely becomes an issue for occasional filers.

Serving the Defendant

The court clerk sends notice by certified mail with restricted delivery. If the individual defendant signs the green card return receipt, service is complete; an agent may sign for a corporate or partnership defendant. If the mail comes back unclaimed or refused, you'll need to arrange personal service through a process server or court officer — typically $26 plus mileage — at least seven calendar days before the hearing date.

What to Bring to the Hearing

Prepare three identical sets of your evidence:

1. For the judge or magistrate
2. For the defendant
3. For yourself

Each set should include: the signed contract or written agreement, every unpaid invoice with dates and amounts, your demand letter and certified mail receipt, emails or texts confirming the work was delivered, and any responses (or non-responses) from the defendant about payment.

Organise everything in chronological order. The magistrate will ask you to explain what happened and what you're owed. Stick to the facts — when you were hired, what you delivered, what was agreed, and what remains unpaid.

After the Judgment

Winning a judgment establishes that the defendant legally owes you the money, but the court doesn't collect it for you. If the defendant doesn't pay voluntarily, you'll need to pursue enforcement through wage garnishment (Form MC 12/MC 13), bank account garnishment, or a debtor examination to locate assets.

The six-year statute of limitations for written contract claims (MCL 600.5807) gives you time to file, but don't wait — evidence gets stale and defendants become harder to locate.

If you're dealing with an unpaid invoice under $7,000 and want a printable step-by-step system covering forms, service tracking, and hearing preparation, the Michigan Small Claims Filing Guide walks you through the entire process from demand letter to courtroom.

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