Commercial Collections in Maine in ME — Business Law… | CGMIMM
Business Law · ME
Commercial Collections in Maine
Maine businesses pursuing commercial debts navigate state collection laws, statutes of limitations, mechanic's liens, judgment enforcement, and FDCPA exemptions for original creditors.
Published May 9, 2026
## Commercial collections in Maine
**Commercial collections** is the process of recovering business-to-business debts. Maine businesses face unique challenges + opportunities — including statutes of limitations, jurisdictional issues, judgment enforcement, and specific collection laws.
## Pre-litigation collection
**Common steps:**
**Demand letter:**
- Specific demand for payment
- Specific deadline
- Consequences if not paid
- Document trail
- Often resolves cases
**Phone collection:**
- Direct contact with debtor
- Specific procedures
- Document conversations
- Specific compliance
**Statement of account:**
- Detailed billing history
- Specific charges
- Specific to debt
- Documentary evidence
**Collection agency:**
- Hire third-party
- Specific to claim
- Specific fees
- Specific compliance
**Settlement negotiation:**
- Discount for prompt payment
- Specific terms
- Payment plans
- Specific to circumstances
## FDCPA does NOT apply to original creditors
**Important distinction:**
**FDCPA covers:**
- Third-party debt collectors
- Specific to consumer debts
- Specific procedures
- Specific protections
**Does NOT cover:**
- Original creditors collecting own debts
- Commercial debts (B2B)
- Specific exemptions
- Limited applicability
**State laws may apply:**
- ${s.name} specific commercial collection laws
- Specific protections
- Specific procedures
- Specific to ${s.name}
## Statutes of limitations
**${s.name}-specific:**
**Written contracts:**
- Generally 4-15 years
- Specific to ${s.name}
- From breach typically
- Specific accrual rules
**Oral contracts:**
- Generally shorter
- 2-6 years typical
- Specific to ${s.name}
- Written preferred
**Open accounts:**
- Generally 3-6 years
- From last activity typically
- Specific to ${s.name}
- Account-stated principles
**UCC sales of goods:**
- 4 years (UCC § 2-725)
- Specific to UCC application
- Federal preemption
- Specific procedures
**Promissory notes:**
- Specific terms
- ${s.name} specific
- Specific accrual
- Specific to instrument
## Jurisdiction issues
**Where to sue:**
**Personal jurisdiction:**
- Where defendant lives / does business
- Long-arm statute application
- Specific contacts
- Specific to facts
**Subject matter jurisdiction:**
- State vs federal
- Amount in controversy
- Specific procedures
- Specific to ${s.name}
**Venue:**
- Specific county / district
- Specific to circumstances
- Specific to contract provisions
- Specific procedures
**Forum selection clauses:**
- Often in contracts
- Generally enforceable
- Specific to circumstances
- Specific procedures
## Litigation process
**Standard collection lawsuit:**
**1. File complaint:**
- Specific allegations
- Specific damages
- Specific to debt
- Specific procedures
**2. Service:**
- Personal service typically
- Specific procedures
- ${s.name} specific
- Specific to defendant type
**3. Default or answer:**
- Default if no answer
- Specific deadlines
- Specific procedures
- Default judgment available
**4. Discovery (if answered):**
- Specific to circumstances
- Often limited in collection
- Specific procedures
- Specific evidence
**5. Summary judgment:**
- Often available in collection
- Specific procedures
- Specific evidence
- Speedy resolution
**6. Trial (if needed):**
- Often bench trial
- Specific procedures
- Specific to issues
- Specific outcomes
**7. Judgment:**
- Money judgment
- Specific terms
- Specific procedures
- Enforcement begins
## Judgment enforcement
**After winning judgment:**
**Asset discovery:**
- Debtor's exam
- Specific procedures
- Specific information
- Specific to ${s.name}
**Wage garnishment:**
- Limited federal + state caps
- Specific procedures
- Specific to circumstances
- See wage garnishment guide
**Bank account levy:**
- Specific procedures
- Specific to ${s.name}
- Specific exemptions
- Specific to circumstances
**Property liens:**
- Real estate (specific procedures)
- Personal property
- Specific to ${s.name}
- Specific recording
**Property seizure:**
- Specific procedures
- Specific exemptions
- Specific to ${s.name}
- Limited typically
**License suspension:**
- Some states + types
- Specific procedures
- Specific to debt type
- Limited applicability
**Domestication of out-of-state judgments:**
- Uniform Foreign Money Judgments Act
- ${s.name} adoption
- Specific procedures
- Foreign + interstate
## Specific industry considerations
**Construction:**
- Mechanic's liens
- Specific procedures
- Specific deadlines
- See mechanic's liens guide
**Healthcare:**
- Specific consumer protections
- Specific billing rules
- Specific to insurance
- Specific procedures
**Financial services:**
- UCC Article 9 secured transactions
- Specific procedures
- Specific to security interests
- Specific notices
**Tech / SaaS:**
- Specific contract terms
- Specific to recurring billing
- Specific to access termination
- Specific procedures
**Manufacturing:**
- Specific to UCC
- Specific procedures
- Specific evidence
- Specific to industry
**Professional services:**
- Specific to attorney-client + similar
- Specific procedures
- Specific privileges
- Specific to industry
## Common defenses
**Debtor's defenses:**
**1. Lack of debt:**
- Goods not received
- Services not performed
- Defective goods / services
- Specific to facts
**2. Defective goods / services:**
- Counterclaim available
- Specific damages
- Specific procedures
- Reduction of debt
**3. Statute of limitations:**
- Specific to ${s.name}
- Specific to debt type
- Specific accrual
- Strict enforcement
**4. Account already paid:**
- Specific evidence
- Specific procedures
- Specific to circumstances
- Documentation
**5. Specific contract defenses:**
- See breach of contract guide
- Specific to circumstances
- Specific procedures
- Specific evidence
**6. Bankruptcy:**
- Automatic stay stops collection
- Specific to bankruptcy type
- Specific procedures
- Specific consequences
**7. Identity theft:**
- Not actual debtor
- Specific to evidence
- Specific procedures
- Specific defenses
## Pre-suit considerations
**Cost-benefit analysis:**
**For collector:**
- Likelihood of payment
- Cost of suit
- Specific to debtor's assets
- Specific to legal fees
- Net recovery analysis
**Settlement options:**
- Discount for prompt payment
- Payment plans
- Specific terms
- Specific to circumstances
**Alternative dispute resolution:**
- Mediation
- Arbitration
- Specific to contract
- Specific procedures
## Strategic considerations
**For creditors:**
- Document everything
- Maintain account records
- Specific to evidence
- Specific to ${s.name}
- Specific procedures
- Cost-benefit analysis
- Strategic enforcement
**For debtors:**
- Respond to demand letters
- Negotiate when possible
- Specific to defenses
- Specific procedures
- Don't ignore lawsuits
- Bankruptcy considerations
## Costs
**For creditors:**
- Demand letter: $50-$300
- Filing fees: $200-$500
- Service: $100-$500
- Attorney fees: $1,500-$15,000+ typical
- Specific to complexity
- Specific to amount
- Often recoverable
**Contingency vs hourly:**
- Some attorneys take contingency (25-40%)
- Others hourly
- Specific to case
- Specific to amount
## Attorney's fees recovery
**Generally:**
**"American Rule":**
- Each side pays own fees
- Default rule
**Exceptions:**
- Contract provides for fees
- Specific statutes
- Specific to ${s.name}
- Specific procedures
**Contract attorney fee provisions:**
- Critical for collection cases
- Specific language matters
- Reciprocal vs one-sided
- Specific enforcement
## What you should do
If your Maine business needs commercial collections: send demand letter + try to settle, then file lawsuit if necessary. Most Maine commercial litigators handle collections. Many take contingency for stronger cases. Cost-benefit analysis essential. Document everything. Specific to Maine requirements.
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*This guide is general information about Maine law as of mid-2026 and is not legal advice. Commercial collections is technical. Talk to a licensed Maine business attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.