dartman1965
Well-Known Member
I have been in that position a time or three.Of the choices listed I think the big guys worked about the best.Just make sure your big guys are bigger than his big guys.:naka:
Collecting from deadbeat customers
- Thread starter MB43
- Start date
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You gotta remember that I'm in NY. So I'd be sending Fat Joey, Little Joey, Uncle Joey and Fat Joey's cousin - Joey.
That sounds promising, I'll look into doing this.
One thing you guys gotta remember - the company that owes me is an LLC so I wouldn't be able to put any liens on property or personal accounts.
gunbunny
Well-Known Member
I hate to admit it, but I feel your pain. I've got about $6K in bad debt I'm carrying on the books. The original # was closer to 10K
I've turned some of it over to a collection agency, and they have have been hounding some of these people to death. They have managed to collect or caused people to bring me some money.
I have mechanics liens out on some property, so sooner or later, that will get paid. The ones I loved were the bad check writers, oddly enough, I collected the last one of those this past February. Last X-mas eve this guys mother called me and asked if I would be willing to drop the warrant I had on him. It would seem the police came to her house and arrested her son on X-mas eve.
I told her I sure would, I need the $65 for the bad check, $70 for the bank fees and $250 for my bad check fee. Mommy wouldn't come off the $385 and junior spent X-mas in jail. It went to court, he was ordered to pay by Jan 24, he didn't. he was re-arrested and posted bail (which was $385) and I got paid that way. I got paid and he spent 4 days and arrested twice over a key.
If the amount is large enough, I would contact a collection agency and/or file a lawsuit. Most times you can get any or all legal costs involved in the suit. it's a huge pain, but worth it. Mind if I ask what the debt is over?
I've turned some of it over to a collection agency, and they have have been hounding some of these people to death. They have managed to collect or caused people to bring me some money.
I have mechanics liens out on some property, so sooner or later, that will get paid. The ones I loved were the bad check writers, oddly enough, I collected the last one of those this past February. Last X-mas eve this guys mother called me and asked if I would be willing to drop the warrant I had on him. It would seem the police came to her house and arrested her son on X-mas eve.
I told her I sure would, I need the $65 for the bad check, $70 for the bank fees and $250 for my bad check fee. Mommy wouldn't come off the $385 and junior spent X-mas in jail. It went to court, he was ordered to pay by Jan 24, he didn't. he was re-arrested and posted bail (which was $385) and I got paid that way. I got paid and he spent 4 days and arrested twice over a key.
If the amount is large enough, I would contact a collection agency and/or file a lawsuit. Most times you can get any or all legal costs involved in the suit. it's a huge pain, but worth it. Mind if I ask what the debt is over?
I did some consulting work for the company I mentioned... IT/computer stuff.
The amount owed is nearly $40k.
gunbunny
Well-Known Member
Och! There's nothing to file a lien against. I would definitely get an attorney involved. A collection agency may or may not be the best route without a judgment already in place. If it's a LLC, you probably wont be able to seize personal assets, but business assets could be seized and auctioned off to satisfy the debt.
Not real sure how it works in NY state, but there is a reason its called Limited Liability. You may be able to go after personal assets.
For $40K, I'm seeing a lawyer.
I just have a ton of people who owe me $500 here and $300 there. Nothing that big in 1 lump.
Snake
Mopar Nut
JUDGE JUDY....................... good luck what I do say small claims court I got good lawyers.
Yeah, I'm kinda thinking that's what I'll have to do. My own lawyer said he'd take it on, but thinks it'd cost me around $3500 for all the court filings and for his time. But there's no guarantee of results...
gunbunny
Well-Known Member
I'd include the $3500 + interest on the $40K with the filing. I think getting the judgment would be slam dunk. Especially if you have a contract with terms of payment. I think I would start with a letter from the attorney indicating your intention to file the suit if the debt is not satisfied. Most lawyers will do this for less than $100. I have found this to be pretty effective. The threat of losing a home can be quite motivating to most people. I'd get the ball rolling soon. If nothing else you will be able to write the loss off, but personally, I'd rather have 78% of something instead of 100% of nothing.
Yeah, I'll have a talk with my attorney about that.
I looked into writing it off, but since I use the cash method of accounting I don't record sales until I actually receive the cash so I wasn't able to write it off. I would have to record it as income which I can't do until it's paid.
From the IRS Publication 535:
A letter of intent from your lawyer with a time to comply. If no compliance, then have your lawyer file the proper papers with the court to sue for payment. Have your lawyer ask for court costs and lawyer's fees in any settlement. As you say, it will cost you up front, but if you have proof you did the consulting work... you will win. JMO
Mikel, if you want to try your hand first at an informal demand letter and only enlist a lawyer if you have to, here's a little format you can use.
http://forum.eastwoodco.com/showthread.php?t=6569&highlight=demand
Adding threats of the liens and attachments that will be filed if she ignores you will also get a lot of attention.
I wish all my customers treated me like FABO members do! I've had one bad check Harley parts client ($485.00 plus bank fees) from the Nashville area, and went with my 6'5 280 lb. enforcer -- Billy LOL -- just this afternoon to drop by a local bike customer's place to see if he was ready to pay for his chain guard he dropped off almost six weeks ago. But other than that, I'm knockin' on wood and considering myself lucky with this economy.
Forty thousand dollars plus interest and aggravation .... I feel for ya! Best of luck, and godspeed to her right foot as she drives to her bank to finally pay you.
http://forum.eastwoodco.com/showthread.php?t=6569&highlight=demand
Adding threats of the liens and attachments that will be filed if she ignores you will also get a lot of attention.
I wish all my customers treated me like FABO members do! I've had one bad check Harley parts client ($485.00 plus bank fees) from the Nashville area, and went with my 6'5 280 lb. enforcer -- Billy LOL -- just this afternoon to drop by a local bike customer's place to see if he was ready to pay for his chain guard he dropped off almost six weeks ago. But other than that, I'm knockin' on wood and considering myself lucky with this economy.
Forty thousand dollars plus interest and aggravation .... I feel for ya! Best of luck, and godspeed to her right foot as she drives to her bank to finally pay you.
Hey, looks good, I'm going to adapt that and use it.
I was looking for a way to report this open invoice to a create agency and stumbled across this page: http://smallbusiness.dnb.com/webapp...toreId=10001&catalogId=70001&categoryId=19018
It's recommended by a rather large company (Dunn & Bradstreet), they will report the non-payment to D&B, and they will handle the calling, letters, etc. If none of my own methods work I may look into using that service.
1970BBDart
Well-Known Member
You can put a lien on the LLC's property and assets. As soon as you serve the bank that her LLC uses, she will be unable to use any of the monies to make payments or payroll, I guarantee that she will start communication with you asap. If not, sieze the bank accounts and property, should be relatively simple once you get the lien filed.
While I try to figure out other options, I've got the collections agency working on trying to recover some of this debt. I won't owe them a dime unless they're able to collect, and then what I would have to pay them is pretty low so it works out good for me.
I'm keeping my fingers crossed but am still not all that hopeful...
I'm keeping my fingers crossed but am still not all that hopeful...
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