Are there any rules prohibiting me from collecting a small claims court judgment outside of court?
In Michigan, there are no specific rules against collecting a small claims court judgment outside of court. However, if you choose to pursue this method, it is important to remember that a judgment is not a guarantee of payment. You still need to follow the proper legal steps to enforce the judgment, and you may not be able to collect without the help of the court. When a judgment is issued, it gives you the right to pursue a variety of methods to collect the money. It is not recommended that you take any action (such as withholding wages, bank levies, or property attachments) without first consulting a lawyer. Taking such steps may be illegal in your state, and could result in a lawsuit against you. In Michigan, other collection options include garnishment of wages, execution on personal property, and obtaining an assignment judgment. An assignment order allows you to garnish wages from a defendant’s employer, or any other source of income, up to 20%. You can also attach bank accounts or liens on real estate. In addition, a court may also enter a Judgment of Reform which requires a defendant to pay installment payments on a judgment. If you are unsuccessful with these collection methods, you may want to consider hiring a collection agency. Collection agencies often offer better success rates in obtaining payment from a judgment debtor. However, you should research any collection agency before hiring them, as some of them may charge high fees.
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