Legal Question in Credit and Debt Law in Michigan

Re: collecting a debt

Your ability to request the debt be repaid depends on the original agreement between your friend and the person he loaned money to. Assuming the person is past due in his payments, or has failed to make payments, then yes, you can make a demand for payment on behalf of your friend. I strongly suggest you put it in writing, and send it certified mail.

If he doesn't pay, you can then file a lawsuit on your friend's behalf (assuming your power of attorney grants you that authority). Since their agreement was verbal, that makes it harder to prove your case, but you may still have enough evidence. For example, did your friend give the guy cash, or did he write him a check? Were there any eyewitnesses to the exchange of money, or anyone that overhead the agreement between them? The other person might acknowledge he got the money, but claim it was a gift.

Good luck.

Re: collecting a debt

You have to have some proof of the debt before any court can help you. Oral proof is alright, but that means bringing in witnesses or documentation showing the debt.