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Legal Aid
Sometimes, "simple" doesn't get it done. Then what?
When you're a freelancer or a small businessperson, debt sucks. Bad debt from clients who refuse to pay you (or take their sweet time doing it) can kill your business.
We've previously discussed ways to manage customer expectations and deal with simple money collection issues. But sometimes, "simple" doesn't get it done. Then what?
First, determine whether or not to do anything at all. If it's not a lot of money, screw it. Move on. But if it's substantial, and worth the time and energy to pursue it, do it!
If you have a contract, letters, e-mails, or anything to document your arrangement, gather it together. With e-mail, make sure that you have the full headers of the messages, which are needed to authenticate the sender.
Assuming you've tried asking nicely a bunch of times, you may need to get a lawyer involved. Most will not charge you for an initial consultation. If you are a member of a professional group, you may have a legal benefit that allows you to consult a lawyer for free. If you have a friend who is a lawyer, they may be willing to help, too. In just about every instance, the lawyer will start by writing a threatening letter to the deadbeat client.
(I'm not an attorney, by the way, so before you do anything that involves the law and debt collection, you should definitely consult one.)
The threatening lawyer letter often works, but be prepared to back it up by filing a lawsuit. That's where having your paperwork and e-mails to document the debt comes in.
We've previously discussed ways to manage customer expectations and deal with simple money collection issues. But sometimes, "simple" doesn't get it done. Then what?
First, determine whether or not to do anything at all. If it's not a lot of money, screw it. Move on. But if it's substantial, and worth the time and energy to pursue it, do it!
If you have a contract, letters, e-mails, or anything to document your arrangement, gather it together. With e-mail, make sure that you have the full headers of the messages, which are needed to authenticate the sender.
Assuming you've tried asking nicely a bunch of times, you may need to get a lawyer involved. Most will not charge you for an initial consultation. If you are a member of a professional group, you may have a legal benefit that allows you to consult a lawyer for free. If you have a friend who is a lawyer, they may be willing to help, too. In just about every instance, the lawyer will start by writing a threatening letter to the deadbeat client.
(I'm not an attorney, by the way, so before you do anything that involves the law and debt collection, you should definitely consult one.)
The threatening lawyer letter often works, but be prepared to back it up by filing a lawsuit. That's where having your paperwork and e-mails to document the debt comes in.
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