Legal Question in Credit and Debt Law in Michigan

collecting a loan to a business

I lent money to a business with the promise ( in writing) that it would be paid back in payments over a year. They have not made any payments and it has exceeded one year now. The business has no real estate to attach a lean to. It is also possibly in financial trouble. How can I collect my loan and protect my money in case they file for bankrupsy?


Asked on 1/04/06, 1:01 pm

1 Answer from Attorneys
Charles Lawler Clark Hill PLC

Re: collecting a loan to a business

Have your recorded a security interest with a UCC filing? If not, and even if you have, you had better send a demand letter and start a suit. In collection matters the parties who start collection early usually have a better chance of being paid. The other question would concern how large the loan is? Under $3,000 small claims court; $3,000-$25,000 district court; over $25,000 circuit court. It is important to get started sooner rather than later.

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Answered on 1/04/06, 1:41 pm


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