Hello gang,
I’m sure you understand the sensitivity of this matter and that I can’t really say much here…..But I have an ex-customer who owes me a good deal of cash.
In short, the project is fine, he just says his cash flow is not so great. Well, that’s not my problem….well now it kind of is.
Any experience with collection agents? how about an attorney?
any advise is great. …..yea, the time limit has expired for a mechanics lien.
Contract is good, this is bigger than small claims.
Thanks.
Replies
Attorney
Don't know what you've already tried, but I use the process of dispute escalation.
Start with a nice letter and follow up with a friendly reminder phone call.
Next the "protect your credit rating" type stuff -- still low key but clear that you're going to be paid.
Next, I go with the "I no longer care what you do but I have consulted with my attorney and if I do not receive payment by the time the attorney is ready with the complaint, it will be filed and you and I can discuss it in court . . . ."
Only had two that actually had to go to court. One, the guy finally paid up when the judge issued an arrest warrant after a judgment, for the debtor's failure to respond to interrogatories about what he owned (whole process took forever, but eventually the debtor gets cornered). Another actually so stubborn that I had to do a sheriff's auction of a second residence (talk about stubborn, but if you keep with it, there is almost always a way to get paid).
A buddy of mine had to take one to the mat and now has another pickup (seized from the debtor, didn't sell at auction so it's his now).
If it's not a lot of money, I let it go -- not in the business of suing people. But you are saying this one is a lot of money, so if you can't make any headway, get the lawyer. Enforcable contracts are one thing that helps drive the economy. Your turn to get the benefit of the laws.
"Let's get crack-a-lackin" --- Adam Carolla
Time to call cousin Vinny.
What's Vinnys number? Thanks guys, I'll book the attorney and get on with the hammering.
All the nice requests are over.I was more concerned that he would counter sue me for bad product.
>>"I was more concerned that he would counter sue me for bad product.
Uh oh. You didn't say that before. And why would you be concerned about that? ;-)
(Just kidding -- I know what you mean -- weasels try to weasel out of anything -- don't let the weasel get the better of you)
"Let's get crack-a-lackin" --- Adam Carolla
NEVER jeopardize your lien rights. Include a good 'cost of collection' clause in your contract. Include an interest clause so you can collect interest on past due invoices.
NEVER jeopardize your lien rights. Include a good 'cost of collection' clause in your contract. Include an interest clause so you can collect interest on past due invoices.
Amen.
View Image
Doncha wish your girlfriend was hot like me?
A little more detail would help in advising you correctly. Like why is mechanics lein too late? Are you a sub or prime contractor?
You may still be able to file, since you can file as soon as it becomes clear you are not being paid. If you are the prime, then no preliminary notice is required. At least in this state.
As it stands I would go for the lein. If you can't do that, then get an attorney right away and hit him hard and fast.
Kirk
Sounds like a dead possum in the pipes candidate! :)
We are the prime.Here in the keystone state, I believe it's 4 months to file a mech lien. And I believe that is after you have stopped working on the job.IE: Here is our bill....you Bum,I'm not paying...OK...Judge, please lien Mr dirt bag here...Trouble with this job is we had been paid all along reasonably well but in lump sum payments (guy is a realtor) and had not scheduled other work for a bit (can't go to HD and get 8x8's ya know)so we thought, hey, we'll extend a little credit, wait a bit and....here we are about a year later. When I really bitch he sends a check. Now I'm barking big with no response....so I'm going to get the "Lawyer Club" out of the back room. I have found like the other guy, if you are a little patient with some folks, they will become very good clients. Rich people juggle thier life/payments too, just larger amounts. As for dirty tricks, I like the possum idea---will seek drain pipe. What I'd like to do is Sh*t on the guys public reputation so he can't get any other contractors over there. Any rules about stories to your friends? Hey, joe, let me tell you about this job....Law man says "unjust enrichment" is going to be this bums problem.
I plan to hit him like a truck. Even called the IRS to advise that "his non payment is actually income to him"--look that one up, it's great. Problem is the IRS is a little busy these days.
We'll see. Thanks again, Please send more dirty tricks ;-)
OK I see where you are. Basically, report him to a credit collection agency as a bad debt within two weeks of threatening to do it and then go to court to collect your balance. Here is is a $5K max on small claims, more than that it is Sue in Superior Court.
Yep, collection agents seem to be an illusive bunch...Not one has said how effective they can be. I'm headed for court. Gonna try, anyway.
Not a collection agent, but a credit reporting agency. That way the bad debt will affect his ability to get credit when they want to refinance or purchase on credit like a car or home. This is what got two old dead beat cleints of mine to finally pay. I didn't have to persue them, years later they needed a loan and couldn't get it unless they paid me off.I have used a collection agency and if you want to go that route, you need to do a few things before you need them. One is to put a clause in your contract that if you have to use the collection agency then their costs are added in. They typically charge about 40% so I immmediately change the amount owed from $100 to $140.00. Then there are the interest charges and other collection costs like small claims or lein filings that are separate from the agency charges.Then you need to make sure you have the accurate info on the customer, ie their name, SS# and DL# and make sure your contract is with them. In a community property state you need both husband and wife.Find a good one in your area and they will tell you all you need to know to be sucessful in collecting bad debts.By the way, once you refer it to them, the client must pay them, you are no longer in the loop. So it is not "your fault".
Hey, joe, let me tell you about this job....
That's a very effective way to deal with bad clients.
called the IRS to advise that "his non payment is actually income to him"--
Oh, I like that one. Nothing like getting the feds on your side.
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
I believe the IRS still pays bounties for those who drop a dime on what turn out to be actual tax cheats. Mebbe 10% of the total recovered. You might actually recover more than you are owed.
Time to call the Dieselpig collection agency.
In KY you've got 45 days from the date of your final invoice to file a mechanic's lien.
Kind of sucks, since I give 30 days and then a couple for the benefit of doubt.
Never had to file one - I've had several customers that told me "sorry, don't have it right now- might have it next week". I had one that did that 15 years ago. He hand delivered a check for $100 every week for a year+ and then suddenly paid the balance and interest. Since then I've done at least a project per year for him and he's paid his bills immediately since. In fact, if he calls and needs something done, I pretty much drop what I'm doing and take care of him, especially if cash flow is tight.
Talk to him and see if he feels like an honest man (maybe you know already). Work out a deal if possible and put a lawyer out of business.
Good luck.
http://grantlogan.net/
Good story and good advice (other than the DP collection agency part, of course). Gotta respect someone who is willing to make an honest effort, even if it's not exactly the original 'deal'. View Image
....Gotta respect someone who is willing to make an honest effort, even if it's not exactly the original 'deal'I may be a chump, but I always consider everyone an honest person 'til they screw me. Then I try to give them a chance to change their ways and make it right. It works probably 75% of the time.Why is it every time I need to get somewhere, I get waylaid by jackassery?
http://grantlogan.net/
Can I guess? Your ex client is a laywer? Next guess would be Dr.
my experence with court hasn't been so good. i took a guy to court, won a judgement for 17k plus intrest. it's been 14 years so intrest is probably another17k. i'd sell my rights for a 1k!i tried all kinds of collection ideas, guy was good and made sure nothing ever in his name. oh well it was fun paying the lawyer more money to win a worthless judgement. larry
hand me the chainsaw, i need to trim the casing just a hair.
File a lien on his property if you don't get paid. Before the title can ever change, you will have to get paid.
Grunge on. http://grungefm.com
If I recall right you only have so long to file a lien. If you don't then you are out of luck.