Small Business Needs to Collect a Laarge Debt

Updated on May 22, 2009
D.R. asks from Carrollton, TX
11 answers

We desperately need some small business legal advice. We just finished a large job that took about 4 days. We paid out over $2500 in labor costs and then the out of town owner said he'd pay us when he got around to it instead of the agreed time of the night we finished. It has been 2 weeks, all the labor checks have been cashed and now I am wondering what to do besides call him everyday. We're in Texas and it's hard to collect debts here.

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B.B.

answers from Dallas on

Ed Dannis does business to business debt collection, as well as personal stuff, too. ____@____.com, ###-###-####. I met him at a networking meeting in Addison, and was impressed by him. Good luck!

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T.G.

answers from Dallas on

Hire an attorney and have them threaten suit. If they file suit the debtor will be responsible for not only the debt, but court costs, attorneys fees and interest on the debt. It won't cost much to get the results you need. Sometimes the letter threatening suit is all it takes. I work for a lawfirm that may be able to help if you are interested. They are a great firm with great attorneys. Very nice people and honest. We are also an AV rated lawfirm (the highest rating you can receive). Let me know if you would like their information. :)

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K.M.

answers from Dallas on

Hi D.:

I am sorry to hear about your problem. I've been there.

Your bank should be able to make suggestions to you. Have you ever taken a Lein out on a project where the job wasn't paid. We could do that in Michigan but I'm not sure if that is available in Texas. It's worth checking into.

Good luck!

V.W.

answers from Dallas on

use priority mail to mail them and tell them how much late fee you are going to charge. and then sue them if they are not paying on the date you specified for them. You don't even need a lawyer. just go to the small case court and sue them. they have to pay. no way around it.

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K.O.

answers from Dallas on

Hi D.,
I know this can be very stressful situation to be in. We have used Robert Ranen to collect debts. He is very good at what he does and I didn't feel he charged an arm and leg to get it done. Sometimes just a letter from an attorney will get the customer to pay promptly because they do not want to go to court and get any kind of lien on the home. Robert can be reached at ###-###-####, 5700 Granite Pkwy Ste #200, Plano, TX 75024, http://www.ranennetzer.com
Good luck to you and tell Robert that K. "The Garage Door Lady" sent you. He will get your money for you.

K. O'Connor

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M.H.

answers from Dallas on

My husband's practice handles this kind of claim, set up a consult with John Haugen and he'll take a look at it and give you advice as to how it'll be best to proceed for this situation and to prevent future ones. In addition to being an attorney, he has been a small business owner since 1989. You can call ###-###-#### to set up an appointment or email him at ____@____.com website is www.HaugenLawFirm.com. Best wishes and God bless!!

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R.J.

answers from Dallas on

I would threaten him with a judgement. I think that is about all you can do. If you do this, it will hurt his credit. During these hard times, credit is important.

B.H.

answers from Dallas on

Most collection agencies have very persuasive people who call repeatedly until the debt is paid. I would research collection agencies, most take about 10% of the collected amount, but if he is not responding to your requests, first notify him that the next step is a collection agency which will negatively effect his credit score, then do not hesitate to send him into collections. Good luck.

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J.B.

answers from Dallas on

Texas has very good lien laws, if you improved property than you can use this, but it follows a very strict timeline. I do these at work every month. google texas property lien laws for info and you should find some downloadable forms. usually a call to the owner letting him know that you are going to file one works magic.

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B.W.

answers from Dallas on

there is also a Mechanic's lien that can be put on the property where you worked....I don't know exactly how you go about it but when I owned a painting company clients did not even want to hear it mentioned - I know it causes them all sorts of issues until it is paid....do you have the agreement in writing? Some information...
http://library.findlaw.com/1998/Aug/1/126223.html
http://tlo2.tlc.state.tx.us/statutes/docs/PR/content/pdf/...
http://www.texasattorneyblog.com/mechanics_liens/

Hope this helps

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L.K.

answers from Dallas on

You could take him to small claims court. Since it is under 10,000 that would be the best place for you.

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