Water Damage Collection

[Greg Cole]

Anyone know of a good collection company that deal with water damage job.
We have a $12,000 job our restoration side did for church. Sadly, their insurance company denied the claim. They are uncooperative in paying anything towards it.
Any referal would be greatly appreciated

 

[Desk Jockey]

Wow that's awful, a church?

I'd contact an attorney, it might be worth paying a few hundred for a letter. Collection agency's will snag a good percentage 30%-40% to collect it for you.

 

[steve g]

wow thats tuff. normally most churchs have money and are great to deal with. The thing to look at is what are the assets they have, do they own the building, does the church own anything else?? when I am thinking about a lawsuit I always ask myself what do they have that I think I can attach. will a judgement scare them into paying and if not what do they have I can attach or repo. in a situation like this I would be prepared to heavily discount my rate. but if they are not talking to you there is no chance of that. I would also try to help them figure out how to pay it, can the church get a loan?? and if not could they pay you off in payments??

 

[steve_64]

i know where id be emptying my waste tank periodically.

 

[pinosan]

Dropping off a couple of thousand and a payment plan will be easier and more profitable then hiring a collection agency in this case like Matt Said, my company charges 33% and I have to give them all rights for negotiations. which means they can offer discounts payment plans and all on your behalf. I assure you any collection company will offer at least 1000 off and payment plan.

Do it yourself, bite bullet and try to loose the minimum possible. speak to the person in charge, and tell them you understand their situation but you have expenses and employees to pay. so here is what I can offer you; lay it flat and simple and call it a winner. Unless they are unhappy with your work which I doubt, they will appreciate your help. After all they are not that bad when it comes to pay for services

good luck!

 

["The" Al Bradham]

1st. Do you have a writen contract, if not good luck.

2nd. I would send them a certified letter demanding payment. If they do not have insurace I would offer a written payment plan that they agree to pay so much a month.

3rd. If no answer from them give it to an attorney. Forget a collection company they have no power. All they will do is write letters and make phone calls.

Al Bradham
DisasterCare & Carpet Care Services

 

[GeneMiller]

It's a church, donate the service and write it off of your taxes.

gene

 

["The" Al Bradham]

Gene
That is not a donation. To donate as a business you can only take off what it cost you and you are already taking off the cost of everything (gas, chem's and so on).

If this was the case I would cleaning every church in my area for free. Now if someone pays you for your services they can deduct that from their taxes.

Al Bradham

 

[ACE]

I would try to avoid bad blood with a pillar of the community. If you are not able to write it off as a donation, you can write it off as bad dept and deduct the full 12k.
To do this:
You must obtain an EIN which the are required by law to provide when you send them form W-9. http://www.irs.gov/pub/irs-pdf/fw9.pdf
You must then send them a 1099-C at the end of the year. http://www.irs.gov/uac/Form-1099-C,-Cancellation-of-Debt
Since they are a non-profit the 1099-C should not impact them.

 

[Brian H]

Sit in the back of the church every Sunday as they pass around the collection basket and when it comes to you, take out the money until you are paid in full.....

 

[Desk Jockey]

+2

LOL

 

[SMRBAP]

See if they'd be willing to note to their congregation/parishioners your company donated $xxx to services they needed and ask them to support your company by using your cleaning services, and have them distribute a coupon or business card, post notices in the building, and I am sure they have some sort of monthly or weekly newsletter - get that included in everyone for a year or so.

Maybe the folks that attend appreciate what you did - that you didn't stick it to their church, and you end up with many lifelong customers.

 

[Desk Jockey]

What made the insurance company deny coverage? We've done work for plenty of churches but fortunately never had that happen before.

Who was the insurance company? Church Mutual?

 

[bob vawter]

maybe you did a crappy job?

 

[Bruce Humphrey]

maybe you did a crappy job?

 

[Greg Cole]

maybe you did a crappy job?

No, it was clean water.
Seriously though: Thank for all the advice. Yes, we have a signed work pay authorization. Likewise we have a signed certificate of completion, about 150 before and after pictures, moisture readings, and documnation of every single minute and expense we incurred on the job. I've got about $3,400k in hard costs I've already incurred. This doesnt take into account the wear and tear on the equipmet, etc.
I actually offerred to settle at $5500 and take payments over 12 months. They countered with only paying $500 because they 'just can't afford it". They won't take our phone calls anymore and refuse to sign for certified letters.
Sadly, I believe I'll give it to the attorney.

 

[Desk Jockey]

Why did they think they had coverage? What made the insurance company pull the plug on coverage?

Lien the property.......you'll make a great TV Evangelist!

 

[Steve Toburen]

Sadly, I believe I'll give it to the attorney.

Now you are on the right track, Greg.

Steve Toburen
www.SFS.JonDon.com

PS So I never got if this was YOUR church. If so, you can expect the pastor to pee in YOUR Holy Water! (Good thing your ducks are in a row with the paperwork.)

 

[The Great Oz]

The atttorney is definitely the way to go.

No mainstream church would simply refuse to pay for a service because they aren't insured and "can't afford it." Everyone knows the congregation steps up to give more to pay for a specific project and a water damage loss would be evident to them.

I can't help picturing one of the last restoration jobs we did: A church housed in a former hardware store with a pistol-packing pastor and a garden hose to a galvanized livestock tub for baptisms.They paid the bill though, so maybe this pastor is getting lazy and doesn't want to work up a sweat to fleece his flock anymore.