NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Michigan Freelance Invoice Laws
General information about collecting unpaid invoices in Michigan
Last Updated: 2025-01-01 • Always verify with a Michigan attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
5% per annum (statutory); judgments at Treasury rate + 1%
Small Claims Limit
$6,500
Statute of Limitations
6 years for written contracts, 6 years for oral
Additional Context
Late Fees: Late fees must be reasonable and agreed upon in writing. Michigan courts enforce reasonable contractual provisions.
Interest: Parties can agree to higher rates in writing. Post-judgment interest follows federal Treasury bill rate plus 1%.
Small Claims: District court small claims division handles disputes. Filing fees are $30-$70. Informal process, no attorneys required.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Use written contracts with clear payment deadlines
- ✓ Include specific late fee and interest provisions
- ✓ Send itemized invoices promptly after work completion
- ✓ Document all scope changes with written approval
- ✓ File in district court small claims for amounts up to $6,500
Common Mistakes to Avoid
- ✗ Waiting beyond 6 years to pursue collection
- ✗ Not specifying interest rates in contracts
- ✗ Filing in wrong district court
- ✗ Not sending formal demand letters first
- ✗ Missing the $6,500 small claims threshold
When to Consult an Attorney
For invoices over $6,500 or complex contract disputes.
Frequently Asked Questions
What is the small claims limit in Michigan?
Michigan district court small claims division handles claims up to $6,500. Filing fees are $30-$70. The process is informal and designed for self-representation.
How long do I have to sue for an unpaid invoice in Michigan?
You have 6 years for both written and oral contracts in Michigan. This gives you time, but sooner is always better for collection.
What interest rate can I charge on overdue invoices in Michigan?
The statutory rate is 5% per annum. You can specify higher rates in your contract. Post-judgment interest is the Treasury rate plus 1%.
Where do I file a small claims case in Michigan?
File in the district court for the district where the defendant lives or does business, or where the contract was performed.
Do I need a collection license in Michigan?
You can collect your own debts without a license. Third-party collection agencies must be licensed by the Michigan Department of Licensing and Regulatory Affairs.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Michigan Compiled Laws Chapter 438 (Interest)
- MCL § 600.8401 (Small Claims)
- MCL § 600.5807 (Statute of Limitations)
- Michigan Courts - Small Claims
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Michigan who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Michigan State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Michigan attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Michigan state statutes or a licensed Michigan attorney. Happy Freelance Life is not a law firm and does not provide legal services.