Collections or Small Claims Court?

[Mike Draper]

We have a company that owes us money. They have strung us out to long and am no longer willing to give them the benefit of the doubt. I have personally hand delivered 4 late notices with as many phone calls. What do you guys think the best option is to collect. Small Claims Court or collections? I am going to deliver a letter with the intent for one or the other tomorrow morning.

 

[Guest]

collections your going to give 40% to them

small claims is some of your time and a file fee

small claims be sure to have all your ducks in a row every thing line in a folder all your paper work nice and neet
no big story just the facts the judge will like you so much better. you can be in the right and not ready and you can loose
just because.

 

[daniel@procarpet]

I can't reply until I know what kind of business you are cleaning and about how much they owe you. How many times have you provided service without being paid?

 

[Mike Draper]

It's a local Real Estate Office. About $1000.00 This is the first time I've cleaned for them, I went way lower than I normally do on price just to piss off the lowballers. I'm certainly not worried about losing their business. I clean the general managers house and he is on my side. It's the owners who want to keep earning interest on money instead of paying the bills.

 

[royalkid]

wow...looks like "pissing off" the low-ballers really did you good.....

 

[Mike Draper]

My only regret is that is it wasn't Chem-hack. Once people have had their carpets cleaned by them, it's usually the last time.

 

[handdi]

i have had a lawyer send a letter prob find one too do it for 50bucks or so
do you have one that is a customer he may do it for ya.
it has worked for me in years past

 

[truckmount girl]

Neither is going to assure you will get paid. If they already have poor credit they won't care about an additional hit to their credit. if their credit is good, they may jump on it wanting to protect their rating.

Take care,
Lisa

 

[Lora Olson]

Mike, call and talk to TW. If they own the building, I believe you can put a lien on the property. He used to do it with residential all the time back when he was cleaning. Not sure about commercial, but it might be worth a call.

Sorry

We need to go shooting again real soon!!!

 

[Ron Lippold]

have yor sigh guy make a sign that says ABC DOES NOT PAY THEIR BILLS park out front and wait five minutes and you will have cash in hand. works every time :shock:

 

[steve g]

check to see if you can file a lein, in utah you have 90 days since you last did work for them, then you have 180 days to commence a lawsuit after that. If the building is owned my someone else, I would notify them and also consider sueing them as well, my motto is SUE everybody. that is more of a chance to get paid. it costs about 45 bucks around here to file and usually another 25 to have the constable serve them. usually having them served with a lawsuit is enough to get paid. I have found the judges in small claims court to be very fair and not stuck to having to use lawyer type procedures. they normally hear what everyone has to say. just have your ducks in a row and make the case that at no time did they disagree with the charges or claim they didn't owe them. a pretty open and shut case, they may not even show up to, so you may end up with a default.

 

[The Great Oz]

Collection. Many companies are holding on by choosing which bills to pay, and if they're that tight may decide to file for bankruptcy protection. Take your percentage and move on.

If you want some feeling of revenge, remember that the collection agency will charge your customer more than what they owe.

 

[Jose Smith]

I had dinner with my attorney tonight about this very problem. She told me that having a judgement against them will always get me farther than if I simply went to collections.

Also, we can put a lein on their property. Also, if they have vendors who pay them money, I can have the money owed to me sent directly from them. Also, if I had clients info (the company who owes me money is a large water damage company who I cleaned rugs for) I can send them a demand for money since their goods were delivered and they benefited from my work. Then they would have to go after the company who owes me money. These, plus a few more that I can't remember right now. But I must have a contract/signed invoices and a judgement.

Apparently, we as contractors have rights that allow us to do quite a few things here California. I'm sure your state has similar things that can help you get your money.

Jose Smith

 

[brucehudson]

The advantage to the collection agency compared to a judgment is time. What is your time worth and how much money will your business lose by pursuing a small claims judgment?

If you decide that time is not an issue, getting a judgment is a very effective way of collecting money that you are owed.

If they own the building they are in, you will be able to put a lien on that building (filed almost automatically in many jurisdictions). This, in most circumstances, will prevent them from selling or refinancing the building until your claim is paid, plus accrued interest. However, it may be several years until happens.

If they do not own the building, and they are simply leasing it, they have likely paid a security deposit on that building lease. You would be able to attach the security deposit that is being held by the building owner. You can determine the building owner from the county assessors website.

As a real estate office, they obviously have a relationship with one or more banks. Sending a writ of attachment to their bank can very quickly get your judgment paid.

In addition to the small claims route, you may be able to lien the property as a contractor. The laws regarding this vary by state, but is generally very easy. Many states have very strict time requirements, and you may be outside those deadlines.

If you are not familiar with the contractor (or sometimes mechanics) lien laws in your area, and want me to see what I can find out for you, send me a message.


Something to consider. When they are served with the lawsuit, it is very likely you will be paid right away. Real Estate companies are not the most popular right now, so having a judgment entered against them could damage their financing relationships, and they know that.

This posting is general in nature and should not be considered legal advice.

 

[steve g]

I just saw you are from california, from what I understand there is alot you can do in california if you get a judgement, in this case I think if you get a judgement you can have the sheriff go pick up items to satisfy the judgement, such as cars or business property. its not like texas where paying your bills are optional. I say file the small claims suit now, and let us know how it goes.

 

[Mike Draper]

I will let you guys know. I took a letter in Monday with my intentions of small claims. They have until tomorrow to pay me in full, or else.....

 

[MerCrewser]

I will let you guys know. I took a letter in Monday with my intentions of small claims. They have until tomorrow to pay me in full, or else.....

Don't get your hopes up, this means nothing to them. They probably have a small stack sitting on a desk somewhere. Nobody can make them pay you. Go through the process and get a judgement. After, you can feel out the judge or court staff to find the next course of action, they may have dealt with them in the past and know their situation. Most deadbeats are repeat offenders and know the system. However the system also knows them, and you need to listen carefully to "off the record" comments.