COLLECTION LAWS – MICHIGAN (MI)
(1) Pre-Judgment Interest Rate: In Michigan, the pre-judgment interest rate is governed by the Michigan Compiled Laws Section 600.6013. This statute allows for an interest rate of 6% per year on the amount of damages claimed in a civil action, calculated from the date the claim arose until the date the judgment is entered.
(2) Post-Judgment Interest Rate: The post-judgment interest rate in Michigan is determined by the Michigan Compiled Laws Section 600.6013. According to this statute, the post-judgment interest rate is the average rate of interest paid on one-year United States Treasury bills, rounded to the nearest whole percentage point, not to exceed 7% per year.
(3) Statute of Limitations for Written Contract: The statute of limitations for a written contract in Michigan is six years. This is outlined in the Michigan Compiled Laws Section 600.5807(8), which states that an action based on a written contract must be commenced within six years after the claim accrues.
(4) Statute of Limitations for Oral Contract: For oral contracts, the statute of limitations in Michigan is six years as well. This is established by the Michigan Compiled Laws Section 600.5807(8), which applies the same six-year time limit for actions based on both written and oral contracts.
(5) Statute of Limitations for Open Account: Michigan imposes a six-year statute of limitations for actions on open accounts. This is stated in the Michigan Compiled Laws Section 600.5807(8), which includes open accounts under the same time limit as written and oral contracts.
(6) Statute of Limitations for Contract for Sale of Goods: Under the Uniform Commercial Code (UCC) adopted by Michigan, the statute of limitations for a contract for the sale of goods is four years. This is provided by the Michigan Compiled Laws Section 440.2725(1), which sets the time limit for actions based on contracts for the sale of goods.
(7) Statute of Limitations for Promissory Note: In Michigan, the statute of limitations for actions on promissory notes is six years. This is specified in the Michigan Compiled Laws Section 600.5807(8), which applies the same time limit to promissory notes as other written contracts.
(8) Statute of Limitations for Enforcement of Domestic Judgment: Michigan allows for the enforcement of domestic judgments within ten years from the date the judgment is entered. This is outlined in the Michigan Compiled Laws Section 600.5809, which sets the time limit for the enforcement of domestic judgments.
(9) Statute of Limitations for Enforcement of Foreign Judgment: The statute of limitations for the enforcement of foreign judgments in Michigan is ten years. This is established by the Michigan Compiled Laws Section 600.4801, which provides the time limit for bringing an action on a foreign judgment.
(10) Garnishment Exemptions: Michigan law provides certain exemptions from garnishment. Some of the common exemptions include Social Security benefits, public assistance benefits, workers’ compensation benefits, unemployment compensation benefits, and retirement benefits. These exemptions are detailed in the Michigan Compiled Laws Section 600.4012.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.