Contractors - what do you do if you're not paid?

LeeH · 07-28-2011, 01:25 PM

I have an accounting client who installs phone systems for a living. He did a job for a long time client who just won't pay. My client didn't follow the procedure for obtaining a contractor's lien as he's done work for this guy for years.

Without the lien it looks like picking up the equipment is out of the question. What other options are there? Theft by conversion?

AZ small claims court has a limit of $2500 and the bill's for $3500.

gr8fl4porsche · gr8fl4porsche's Garage

If the allowed time to file lien rights has expired, he can simply file a lawsuit.

Ideally the threat of a suit will get the bill paid.

I send a certified letter saying they have 7 business days to pay before a suit is filed for the balance, plus interest and attorneys fees. Never have collected any fees or interest but it gets the balance paid.

Zeke · 07-28-2011, 02:38 PM

I'd file the suit in small claims expecting one of 2 things. He will pay something on the bill to get you to dismiss the suit, hopefully a grand. When he refuses to pay more, you are within the 2500 to file again.

Or, expect to win and collect 2500 and take the loss. Once the judgement is in, look for legal ways to collect. That's another chapter.

look 171 · 07-28-2011, 05:13 PM

Quote:

Originally Posted by milt

I'd file the suit in small claims expecting one of 2 things. He will pay something on the bill to get you to dismiss the suit, hopefully a grand. When he refuses to pay more, you are within the 2500 to file again.

Or, expect to win and collect 2500 and take the loss. Once the judgement is in, look for legal ways to collect. That's another chapter.

Milt,

Did you have to do that? Do you know much about what happens after the judgement and how to go about collecting. I understand they still do not have to pay even if they loose in court. I wish they would just write the check right there in court. In my 20 years of doing this, my very good friend's sister took me for a ride a couple of months ago. The first time was doing work for another contractor when I was 20. I consider myself very lucky.

Jeff