Commercial Collections Corner - Episode 5: When Creditors Merge: Who Can Enforce the Debt? "Standing in the Shoes" of the Predecessor

Commercial Collections Corner is back in 2026 and better than ever! We’re kicking off the series with a timely discussion on merger, standing, and the burden of proof when a business seeks to enforce debt after a change in ownership.

While this episode highlights a recent unpublished Michigan Court of Appeals decision, the core issue extends well beyond Michigan—and well beyond banks. Whether the creditor is a financial institution, supplier, lessor, service provider, or other commercial entity, questions often arise when ownership changes: Who has the right to enforce the agreement? Must the successor produce merger documents or a formal assignment? What is the burden of proof when standing is challenged?

In this episode, Detroit Attorney Chauncey Hitchcock breaks down a common debtor argument: “I never contracted with the plaintiff.” The Court confirmed that when entities merge—whether through a single transaction or a series of mergers—the successor may “step into the shoes” of its predecessor by operation of law. The absence of a separate assignment or specific merger documentation tying the contract to the successor does not automatically defeat standing.

For creditors navigating post-merger enforcement, or anyone facing “real party in interest” challenges after an acquisition or restructuring, this episode provides practical guidance and persuasive authority to support your enforcement strategy.

Key takeaways include:

• How courts analyze a successor entity’s right to enforce contractual obligations following a merger or acquisition
• The distinction between assignment and succession by operation of law—and why that matters
• The burden of proof when standing is challenged and how to respond effectively
• Why producing merger documents or formal assignments may not always be required to establish enforcement rights
• How this opinion can be used persuasively when contractual interests are questioned after ownership changes

About the Series:
Weltman’s Webinar Series delivers year-round educational content focused on creditors’ rights across a wide range of industries and practice areas. Join our key business leaders for these hour-long webinars to stay ahead of trends, changes, and developments in the world of collections.