Late payments or missed payments can leave severe, even unrecoverable, damage to a business and with COVID-19 restriction, it’s important more than ever to keep your cash flow steady and predictable – in order to stay afloat.

To help businesses and creditors out, we have written a practical, in-depth guide to commercial debt recovery that will help a lot of you out.

Without further ado, it is best to start with the basics.

What is Commercial Debt Recovery?

Commercial debt recovery refers to the collection of unpaid business debts such as overdue invoices. Given that the vast majority of small businesses fail due to inadequate cash flow, unpaid invoices lead stressed business owners to initiate commercial debt recovery.

Reclaiming unpaid commercial debt is easier said than done; most small business owners never reclaim the bulk of the money they’re owed. Even worse, pursuing commercial debt recovery without legal expertise can land you in expensive legal trouble if you violate laws.

In order to successfully complete commercial debt recovery, a thorough understanding of federal and state debt collection laws is required.

Commercial debt collection laws in Michigan

Legislation like the Debt Management Act has been passed into law by Michigan legislators in order to protect the rights of debtors and to facilitate legal commercial debt recovery. Violating this law (or other federal debt laws) can lead to fines or even imprisonment.

The law establishes a statute of limitations of six years for debt-related claims in Michigan. In other words, creditors have six years to take legal action against debtors after an alleged offense occurs.

Federal legislation such as the Fair Debt Collection Practices Act has been passed by the United States Congress and applies everywhere in the US. Like Michigan’s Debt Management Act, the FDCPA establishes a statute of limitations for debt claims.

Unlike the Debt Management Act, the federal FDCPA only provides a statute of limitations of one year. Federal law also prohibits unethical commercial debt recovery tactics, like calling debtors at odd night hours or threatening violence if a debt isn’t quickly repaid.

The experts at Hanna & Jarbo are the go-to sources of legal authority for debt collection in Michigan. Our lawyers will quickly pursue commercial debt recovery without violating the law and landing you in a legal dispute.

Three Simple Yet Effective Commercial Debt Collection Methods

Polite reminders about commercial debt recovery

The simplest method of commercial debt recovery is politely informing debtors that their payments are overdue and their accounts are soon to be put into collection. Gentle reminders that adhere to the law can motivate voluntary repayment.

Urgent Final Notices

Once debtors are aware of their debts, you can issue an urgent final notice before beginning the process of commercial debt recovery. This firmer approach gives the debtor one final chance to pay their invoice before serious steps are taken.

Formal Legal Demands

With every other option exhausted, the only remaining choice is to issue an actual legal demand. For a landlord working with a debtor tenant, this may be a Notice To Quit (NTQ) before an eviction. For others, it may refer to a lawsuit conducted by an attorney.

Things To Know Before Getting Started…

Avoid personally contacting debtors

You run the risk of accidentally violating debt collection laws any time you personally speak with a debtor who owes you money. Don’t risk thousands of dollars in fines or up to a year in prison – let your attorneys handle communication with debtors on your behalf.

Remember that most debts are never collected

Most business owners never receive the late payments they’re owed. According to Entrepreneur, US businesses are owed more than $800 billion in unpaid invoices. Luckily, the experts at Hanna & Jarbo have an astonishing 85% success rate in debt collection.

Hanna & Jarbo never charge you out of pocket

Our debt collection experts aren’t satisfied until you’re fully repaid. We never charge clients until your debt is successfully collected. Our payment policy ensures that we tirelessly pursue commercial debt recovery on your behalf.

What Does The Commercial Debt Recovery Process Look Like?

Contact our legal experts for a free consultation

The first step to successful commercial debt recovery is getting in touch with Hanna & Jarbo at Once you give us the details of your commercial debt, we begin the process of ensuring your repayment.

Tell us about your commercial debt

No two debts are ever alike – Hanna & Jarbo’s team needs to understand your circumstances to provide speedy repayment. Tell us the debtor’s name, location, contact information, and the overall state of the debt/invoice so that we can get to work on your behalf.

Sit back and get paid

The only thing left to do is relax and watch as Hanna & Jarbo tracks down your debtor, contacts them on your behalf, and initiates legal proceedings if necessary. Remember that we never get paid unless we provide successful commercial debt recovery services for you.

When To Hire a Commercial Debt Collection Attorney

Business owners know that it’s time to hire a commercial debt collection attorney when you’re sick of asking for repayment and are ready to actually receive it. Unlike mere collection agencies, we have the legal power to fight on your behalf in court.

Sick and tired of clients ignoring your emails about unpaid invoices? Ready to stop calling debtors for good about overdue payments? Hire a commercial debt collection attorney when you’re prepared to initiate hasty commercial debt recovery proceedings that produce results.


What Law governs commercial debt collection?

In Michigan, commercial debt recovery is governed by the Debt Management Act.

The federal Fair Debt Collection Practices Act also applies in Michigan and everywhere else in the United States.

What are the costs of a commercial debt collection attorney?

Hanna & Jarbo never charge clients out of pocket. We don’t get paid until you do. After successfully collecting your commercial debt, we’re rewarded with either a lump sum or an agreed-upon percentage of the recovered debt.

The costs of failing to hire a commercial debt attorney are steep; pursue commercial debt recovery by yourself and you could face thousands in dollars in fines or even imprisonment.

How long does it take to recover commercial debt?

Every case is different, but most commercial debts can be collected in approximately 30-90 days. An average of 60 days is frequently cited in the debt collection industry for recovery.

What’s an example of a commercial debt?

A business owner charges another business $1,000 in the form of an invoice. If the invoice goes unanswered and the $1,000 is never repaid, it becomes a commercial debt owed by one company to another.

Need additional help? Get in Touch with Hanna & Jarbo

Hanna & Jarbo are the most successful debt collectors in the Midwest. Our 85% success rate ensures that the majority of our clients are happy customers who go home with repayment in their pockets.

Our team of legal experts possesses years of collective experience tracking down wayward debtors. Whether you’re pursuing commercial debt from another Michigan business or from a foreign (non-Michigan) entity, we can help you get repaid in record time.

We’ve helped landlords, contractors, and small business owners in every industry imaginable. Our unique understanding of Michigan’s debt collection laws allows us to vigorously pursue your commercial debt without violating collection standards.

Specialty Practice Areas

Worried that your commercial debt can never be recovered? We have experience in virtually every possible industry. Our lawyers will work with your company to track debtors, provide them with written legal notices, and collect full repayments after going to court if necessary.

With a staggering 85% success rate, our lawyers are the best in the Midwest. Whether you’re a small business, regional powerhouse, or independent landlord with stubborn tenants, we can ensure quick commercial debt recovery services are provided to you.

Hanna & Jarbo’s legal experts are skilled in the following practice areas:

  • Supplier Account Receivables
  • Returned Checks (including charge-back credit card payments)
  • Landlord-Tenant Debt & Money Judgments
  • Charged-off or non-paying commercial credit portfolios
  • Construction debts
  • Auto loan and deficiencies
  • General loans, notes, and credit lines in default
  • Secured and unsecured judgments or liens
  • Foreign (non-Michigan) judgments
  • Mortgage/Land Contract deficiencies
  • Other commercial paper receivables

Get In Touch With Hanna & Jarbo Today!

Ready to get paid? Get in touch with Hanna & Jarbo today to immediately begin the commercial debt recovery process. Our free consultation call will set you down the path toward repayment: reach out to a lawyer for free by calling us at

Our lawyers are never paid until your debt is fully recovered. Our 85% success rate ensures that you face favorable odds whenever you try to collect. Why let your unpaid debt go to waste? Contact Hanna & Jarbo for a free chance to secure your next payday.