In Michigan—from the automotive powerhouses of Detroit and the manufacturing hubs of Grand Rapids to the medical research corridors of Ann Arbor—cash flow is the fuel of the “Great Lakes State.” But in 2026, Michigan’s legal landscape has shifted. With the landmark 2026 Michigan Medical Debt Protection Act now in effect and state-mandated minimum wage hikes to $13.73, traditional national agencies are struggling to stay compliant. You don’t just need a collector; you need a Michigan-licensed strategist who knows how to navigate the 6-year statute of limitations and protect your business from the strict penalties of the Michigan Regulation of Collection Practices Act (RCPA).
Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
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The Michigan Legal Landscape (2026 Summary)
Michigan is a powerful state for recovery if you act within the legal window. The state provides a robust 6-year period for most contracts, but the rules for how you communicate are among the strictest in the Midwest.
| Debt Type | Statute of Limitations | Michigan Compiled Law (MCL) |
| Written & Oral Contracts | 6 Years | MCL § 600.5807 |
| Sale of Goods (UCC) | 4 Years | MCL § 440.2725 |
| Medical Debt | 6 Years | REPORTING BANNED (2026 Act) |
| Wage Garnishment | ALLOWED (25% Cap) | MCL § 600.4011 |
Critical Michigan Rules for 2026:
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Medical Debt Reporting Ban: As of January 2026, Michigan law (SB 451/HB 4329) prohibits reporting medical debt to credit bureaus for most residents. While national “credit-threat” agencies are now toothless, Nexa uses litigation-ready mediation and legal judgments to secure your payments.
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The 2026 Wage Floor: Effective Jan 1, 2026, Michigan’s minimum wage has risen to $13.73/hour. This significantly increases the “protected” income a debtor keeps, meaning you need Nexa’s data-scrubbing to identify only high-ROI accounts for legal action.
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The “Zombie Debt” Prevention: Michigan law (RCPA) prohibits misleading a consumer into “reviving” a time-barred debt. Nexa’s systems are hard-coded to the 6-year default clock to ensure you stay 100% legally safe.
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Aggressive Garnishment: Once a judgment is secured, Michigan allows the garnishment of up to 25% of disposable earnings. We utilize this for high-balance B2B and consumer accounts to force a resolution.
Cost-Effectiveness: The Nexa Advantage
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Fixed-Fee Recovery ($15/account): Ideal for early-stage receivables. Debtors pay 100% directly to you.
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Contingency Service (20%–40%): Performance-based recovery. No Recovery, No Fee. We take the risk; you get the revenue.
Industries We Serve in Michigan
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Automotive & Advanced Manufacturing: Specialized B2B recovery for the Detroit and Grand Rapids industrial corridors. We manage high-value sub-contractor, supply chain, and raw material disputes.
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Healthcare & Medical: 100% HIPAA-compliant. We are the state leaders in navigating the 2026 Medical Debt Protection Act, using empathetic mediation to preserve patient-provider trust.
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Colleges & Universities: From the Big Ten research institutions to private colleges, we handle tuition and bursar recovery with a “Brand-First” approach that protects your institutional integrity.
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K-12 Private & Charter Schools: Diplomatic recovery for unpaid enrollment and textbook fees, tailored for Michigan’s growing school choice landscape.
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Accountants & CPA Firms: Recovery of professional service fees. We understand the Michigan tax cycle and ensure you get paid without damaging the local client rapport you’ve built.
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Banks & Credit Unions: Expert handling of delinquent consumer loans and deficiency balances using Michigan’s 10-year judgment renewal window.
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Construction & Trades: Revenue recovery for HVAC, electrical, and general contractors. We are experts in the Michigan Construction Lien Act and strict 90-day filing deadlines.
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B2B Commercial, Restoration & Waste Management: High-speed recovery for service providers who need cash flow restored immediately to manage rising labor costs in Michigan.
Recent Michigan Recovery Results
Case 1: Ann Arbor Specialty Medical Group (Medical)
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The Problem: $150,000 in aging debt. The clinic feared the new 2026 medical reporting ban would make their accounts “uncollectable.”
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The Result: Nexa implemented a compliance-first mediation strategy, recovering $98,000 in 80 days without needing a single credit report.
Case 2: Grand Rapids Industrial Parts Supplier (B2B)
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The Problem: A $65,000 unpaid contract from a tier-two auto supplier claiming “cash flow issues.”
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The Result: Leveraging Michigan’s 6-year written contract statute, we secured a full $65,000 recovery plus costs within 40 days of the initial demand.
Frequently Asked Questions (FAQ)
1. Can you still collect medical debt in Michigan with the 2026 ban?
Yes. The ban only stops the reporting of the debt to credit bureaus. You still have the legal right to sue for a judgment and garnish wages. Nexa’s legal network specializes in these judicial recoveries.
2. What is the minimum wage floor for garnishment in 2026?
As of Jan 1, 2026, a debtor’s income is protected up to 30x the federal minimum wage or the state-specific floor (approx. $412/week). We focus on accounts with income above this level to ensure you get a high ROI on legal fees.
3. Does Nexa handle Construction Liens in Michigan?
Yes. We assist contractors in meeting the strict MCL 570.1111 requirements, including the “Notice of Furnishing” and the 90-day window for recording a claim of lien.
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