When a Client Won't Pay: Getting Paid in Michigan

You did the work. You delivered it. The invoice went out weeks ago — and now the emails go unanswered, the "check's coming" texts have stopped, and the money you earned is just sitting somewhere that isn't your account. Figuring out what to do when a client won't pay isn't about being aggressive; it's about knowing which lever actually moves money in Michigan, and in what order. This guide walks freelancers, contractors, and small businesses through the real options — from the letter that often ends it, to the courtroom that sometimes has to. For help putting the paperwork behind you in place, see our contracts practice.

First, know what you're actually standing on

Before you chase the money, be clear on what you're enforcing. A signed contract is the strongest position, but it is not the only one. In Michigan, an oral agreement can be binding, and so can a deal pieced together from emails, texts, invoices, and a paper trail of work delivered and accepted. We covered this in depth in is a handshake deal binding in Michigan — the short version is that "we never signed anything" is rarely the end of the story.

There's a limit worth knowing: Michigan's statute of frauds (MCL 566.132) requires certain agreements to be in writing to be enforceable. Most freelance and service invoices fall outside it, but the details matter — which is exactly the kind of judgment call worth running past a lawyer before you rely on a claim.

The demand letter — the step that usually works

Most unpaid-invoice fights end here, and they end quietly. A demand letter is a formal, written notice that states what you're owed, references the agreement, sets a deadline, and makes clear you intend to pursue the debt if it isn't paid. It is not a threat — it's a signal that the informal phase is over.

Why it works: a letter on law-firm letterhead tells a non-paying client that ignoring you now has a cost. Many clients who stonewall a freelancer will pay within days of a lawyer's demand, because the calculation just changed. A well-built demand letter also does quiet legal work — it can establish notice, start certain clocks, and become an exhibit if the matter ever reaches a courtroom. That's why the wording isn't something to improvise.

Small claims vs. district court

If the letter doesn't land, Michigan gives you a courthouse — and which door you use depends mostly on the size of the debt.

• Small claims is built for exactly this: it's faster, cheaper, and designed so people can use it without a lawyer (in fact, attorneys generally can't appear for you there). It's capped at a dollar limit that the state adjusts over time, so confirm the current cap on the Michigan Courts site before you file.
• District court (the general civil docket) is where larger claims go, where lawyers can appear, and where you have more procedural tools — and more formality to match.

There's a real trade-off. Small claims is quick and low-cost but limited in what it can award and how you can present the case. District court opens up bigger recoveries and stronger procedure but takes more time and effort. Which fits depends on how much you're owed, whether the client has the means to pay a judgment, and how clean your paper trail is.

Breach of contract — and what you can recover

When you sue on an unpaid invoice, the core claim is usually breach of contract: you had an agreement, you performed, the client didn't pay, and you were damaged in the amount of the invoice. Michigan contract damages are generally designed to put you where you'd have been if the client had simply paid — typically the unpaid balance.

A few things people assume are automatic often aren't:

• Late fees and interest are generally recoverable only if your contract provides for them (statutory judgment interest is separate). This is one reason a payment-terms clause earns its keep.
• Attorney fees in Michigan usually aren't recoverable unless a contract or a specific statute allows them. "The other side should pay my lawyer" is not the default rule.
• Collecting the judgment is its own step. Winning tells the world you're owed the money; actually getting paid can require further process, which is far easier when the client has real assets or income.

None of this is a reason not to pursue what you're owed. It's a reason to know the terrain before you pick a path.

How to make the next unpaid invoice easier

The best time to solve a payment problem is before the work starts. A few structural choices do most of the protecting:

• A written agreement with clear scope, price, and payment terms — even a short one — turns a "he said, she said" into a document.
• A deposit or milestone schedule so you're never carrying the full value of the work as unpaid risk.
• A late-fee and interest clause, so the contract itself gives you remedies the law won't supply on its own.
• Clear delivery and acceptance terms, so "I wasn't happy with it" can't become a free pass on payment.

Creators and founders dealing with brand and client deals should also read brand-deal contracts for creators and who owns the logo you paid for — the same gaps that cost people their rights also cost them their invoices.

Frequently asked questions

Can I sue if we never signed a contract?

Often, yes. Michigan recognizes oral and implied contracts, and a trail of emails, texts, invoices, and delivered work can prove an agreement existed. A written contract makes it easier, but its absence doesn't automatically defeat your claim. The statute of frauds requires some agreements to be written, so whether yours qualifies is worth confirming.

How much does it cost to take a client to small claims?

There's a filing fee that scales with the amount you're claiming, plus service costs. Small claims is designed to be low-cost precisely so people can use it without hiring a lawyer. Check the current fees and dollar cap on the Michigan Courts website before you file.

Should I send the demand letter myself or have a lawyer do it?

You can send one yourself, and sometimes that's enough. But a letter from an attorney carries different weight, is written to protect your legal position, and often gets a faster payment because it signals you're prepared to follow through.

Can I charge late fees or interest on an unpaid invoice?

Usually only if your contract says so. Without a late-fee or interest clause, you generally can't tack those on after the fact — which is exactly why payment terms belong in every agreement before the work begins.

What if the client says the work was defective?

A genuine quality dispute is a defense they can raise, which is why clear scope and acceptance terms matter so much. Document what you delivered and any sign-off you received. Where there's a real disagreement about the work, the right move is to get advice before it escalates.

When to call ELN

If a client has gone quiet on money you've earned, you don't have to guess your way through it. ELN Law helps Michigan freelancers, contractors, and small businesses recover unpaid invoices — starting with a demand letter that often ends the standoff, and escalating to court only when it has to. We'll also tighten the contract underneath your business so the next invoice doesn't become the next fight. Reach out to ELN Law to talk through getting paid.

You Call You Win.

This article is general information, not legal advice, and does not create an attorney-client relationship.