Small Business Owners:Collection Advice
#1
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Small Business Owners:Collection Advice
Need some advice on how to go about filing a lawsuit in small claims court. I have a guy who basically just won't pay me for some grading that I did for him last fall. He is an acquaintance, we're both in the same fire dept., but he's spending a bunch of money on boats and other toys, and won't pay me the $400 for some grading I did for him last October. I cut him a pretty good break on the price too. I've sent numerous invoices and letters, talked to him face to face a few times, he always says "Yeah I'll get it to you" but it isn't happening.
What do you need to do, I figured tomorrow I'd just walk into the county courthouse and ask the secretary to help me start the process of taking him to court on my own, without a lawyer. Any advice from folks who've done this?
What do you need to do, I figured tomorrow I'd just walk into the county courthouse and ask the secretary to help me start the process of taking him to court on my own, without a lawyer. Any advice from folks who've done this?
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Hey thanks for the link, that's fantastic. I think I'll be giving them a try here pretty soon, there are a few other customers who really drag their feet on payment. For $25 you can't beat it.
#5
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Same here
#6
Yeah, I have a lien out.... it is to the tune of 10's of thousands and has been for, oh, the past 3 years!!! You see the county that the work was performed in happens to be the 5th worst in the country for foreclosure backlogs. That's alright though, someday I'll get it back + the interest, which I think is at 10%, whish it was 21% as stated above.
For $400 I wouldn't waste my time, but I suppose it is all relevant. Do you have any type of signed contractual agreement? Maybe even a quotation that was signed off on to start the work? If you don't have anything with his authorization I would chalk that one up to experience.
For $400 I wouldn't waste my time, but I suppose it is all relevant. Do you have any type of signed contractual agreement? Maybe even a quotation that was signed off on to start the work? If you don't have anything with his authorization I would chalk that one up to experience.
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At work, we put a 20% late payment notice on the bill. Once the late payment bill goes out, its amazing how many people can suddenly "find" the old bill and be so willing to pay it.
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#8
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A small claims judgement isn't worth any more than toilet paper. You have to spend your money to have them served etc. and then spend more money to have wages attached etc. If he's a firefighter you might stand a chance. My experience has been that once you get them served and find out where they work then get the wage attachment in place they just change jobs and you have to do the whole process again.
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It's just the point of the whole thing though. I found out he's got a bunch of old suits for nonpayment from utilities and such, he's not gonna just skip out on this one. He's dumping in his own back yard, so to speak. I'll put a lein on his property or attach his wages or whatever I can do, and just sit back and wait. Sooner or later he'll have to pay up. I wish I could find out how you go about charging those interest rates, that would be nice. Do you have to mention the interest penalties for late payment in your original contract to be able to charge them?
#10
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Timberman, just be careful. Some states are very specific about how you collect a debt. As to placing a lien, in Alabama, you have a time limit based on whether you are the general contractor or a sub contractor. You also have to send out certain number of letters containing specific information before you can even file the lien. My point is be careful. You don't want to be on the other side of the law with this type of individual. He will come after you in a heartbeat. You mentioned he was dumping in his back yard. What exactly do you mean? What is he dumping. Pm if you need to. Rick
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By dumping, I meant figuratively taking a crap in his hypothetical back yard, where he's sure to walk in it. Never heard that one before? It is not good to go shafting people or burning bridges in a close knit rural community, where 80% of the men are in the fire dept together and everyone knows who everyone else's grandmother is. I did him a favor on short notice, and now he's just being a sorry **** about paying me what we agreed on, would rather buy a boat and a jet ski and a new mower. I've got a business to run and a family to support, and $400 isn't gonna break me, but he's not just gonna use me like that either. I've sent him a bunch of invoices and then a couple letters, no response at all, and I've stopped by his house and talked to him about it, now I'm just gonna sue him and get it over with. Tired of dealing with it.
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I got ya. I was hoping he was doing something the EPA or whoever handles your local licensing and permitting might want to know about. I feel your pain. I also am in the dirt business and it's very frustrating to be played.
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Just got an idea... I see that you did some grading, so I assume you also have a loader you can use. Why not pile up all that dirt that you graded right in front of his driveway & tell him you'll move it for the amount he owes you + interest.
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That's an idea. I'd rather get a tandem load of chicken manure dumped there though. He does have an illegal septic system, doesn't have a tank just a drain field, and it comes within 4 feet of his ditch. I don't want to burn him too bad really, I just want him to pay me. He's an OK guy when he doesn't owe you money. Funny how that changes your whole perspective on things.
#15
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Oh, the stories I could tell about dead-beats; I could fill volumes.
Usually, it is worth a couple hundred to get rid of a beat; because, once they owe me, they start avoiding me, and people like that.....it's worth losing a few dollars to keep them away.
As far as collecting, I have went and got horses, cows, country-hams, picked up their beef at the slaughter-house, you name it, anything to get a piece of what's owed me.
Lay low, and when Mr. Big Spender needs a few bucks, he will try to sell a bike, or a boat, or a deer-rifle; that's when you slide in and make a "purchase", and then, beat him at his own game.
Forget about the legalities, these kinds of people are beneath the law and, to deal with them, you have to play just as dirty.