# Court or collections?



## birddseedd (Jul 12, 2010)

a few customers owe me 100 - 300.

is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


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## wondo (Nov 15, 2011)

At least with collections you can get some satisfaction knowing they will bother the hell out of the deadbeat customer.


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## Wilnip (Oct 4, 2011)

I placed a few accounts with the local collection company. I will not place any more with them. I'm sure laws are different everywhere but we have to send a warning letter by registered mail telling them that if we do not receive payment within 10 days, we will file with the magistrate. Sometimes that's enough to get them to pay. We even had one deadbeat show up the day of the hearing and pay their bill.


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## tuney443 (Jun 25, 2006)

birddseedd;1528871 said:


> a few customers owe me 100 - 300.
> 
> is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


If you're not registered as a corporation of ANY kind,take them to small claims court.Small processing fee,no lawyer,it's cool,and because I always was prepared,I always won.Just the certified letter your client receives can scare them into paying you before the court appearance.


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## BPS#1 (Oct 16, 2011)

tuney443;1528888 said:


> If you're not registered as a corporation of ANY kind


So whats that have to do with collecting from a non payer?


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## tuney443 (Jun 25, 2006)

BPS#1;1528912 said:


> So whats that have to do with collecting from a non payer?


If you're a corporation[I'm a subchapter S,so I can't be the plaintiff anymore],you can't bring action upon someone else in small claims court.Regular court yes,but that's only meant for SERIOUS money and usually lawyers get involved.


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## BPS#1 (Oct 16, 2011)

tuney443;1528942 said:


> If you're a corporation[I'm a subchapter S,so I can't be the plaintiff anymore],you can't bring action upon someone else in small claims court.Regular court yes,but that's only meant for SERIOUS money and usually lawyers get involved.


Is that state law or fed law?

My business needs to collect $1000, and it is an LLC.
I haven't gone to small claims yet. It'll be my first time so I'm not totally sure what to expect.


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## Mr.Markus (Jan 7, 2010)

I send them a renewal like I forgot they owed, then when it snows I don't show up. When they call I ask for my money.


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## tuney443 (Jun 25, 2006)

BPS#1;1528944 said:


> Is that state law or fed law?
> 
> My business needs to collect $1000, and it is an LLC.
> I haven't gone to small claims yet. It'll be my first time so I'm not totally sure what to expect.


Well,not 100% sure,but it at least applies to NY.Best for you to simply drop a dime and call the clerk at your small claims court.By me you have to file in the town/city where your client resides,NOT always the same as where you actually did the work.


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## BPS#1 (Oct 16, 2011)

tuney443;1528974 said:


> Well,not 100% sure,but it at least applies to NY.Best for you to simply drop a dime and call the clerk at your small claims court.By me you have to file in the town/city where your client resides,NOT always the same as where you actually did the work.


Lucky me its in the same county.

Western states have counties that are bigger than eastern states, so it does help that usually we aren't working in multiple jurisdictions.


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## KBTConst (Oct 25, 2009)

Send a past due invoice with a side note that states please pay past due balance to avoid legal action. This works for me 95% of the time the other 5% goes to small claims court.


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## birddseedd (Jul 12, 2010)

KBTConst;1529058 said:


> Send a past due invoice with a side note that states please pay past due balance to avoid legal action. This works for me 95% of the time the other 5% goes to small claims court.


ya. iv done it. these people arnt paying. one even straight up told me he isnt. i think ill file the paperwork next week

just go to clerks office and ask for paperwork and apy a fee?


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## RJ lindblom (Sep 21, 2006)

BPS#1;1528944 said:


> Is that state law or fed law?
> 
> My business needs to collect $1000, and it is an LLC.
> I haven't gone to small claims yet. It'll be my first time so I'm not totally sure what to expect.


I believe it a state statute. As much as attorneys have a bad name, sometimes they can do you a lot of good. Even if they answer your questions, or take the case. With small claims actions it is often easy to handle it _pro se_ or "do it yourself." Often the plaintiff can ask for the defendent to pay any fees associated with collecting the debt. Including filing fees, attorney fees, processing fees etc.

Once the judge signs off on the judement you still have to go about collecting the money. Sometimes a court order is all it takes, other times it takes liens or garnishments.

In many states it shoulnd't matter that you're an LLC trying to collect as far as the court system see's it.


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## KBTConst (Oct 25, 2009)

birddseedd;1529061 said:


> ya. iv done it. these people arnt paying. one even straight up told me he isnt. i think ill file the paperwork next week
> 
> just go to clerks office and ask for paperwork and apy a fee?


Don't forget to apply the fee to their bill. or you could just plow their driveway full when it snows! Thumbs Up


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## TGS Inc. (Aug 17, 2010)

birddseedd;1528871 said:


> a few customers owe me 100 - 300.
> 
> is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


Small claims court - get a money judgement...Done (I wouldn't do it for the 100.00, but for 200+)


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## tuney443 (Jun 25, 2006)

birddseedd;1529061 said:


> ya. iv done it. these people arnt paying. one even straight up told me he isnt. i think ill file the paperwork next week
> 
> just go to clerks office and ask for paperwork and apy a fee?


Yup,just looked up Michigan law.Anybody can file,whether individual,partnership,or any kind of corporation.I like Michigan--you get reimbursed for any and all court costs,judgement fees,etc.You aren't entitled to UNGATZ in NY.Good luck Birdseed.


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## BPS#1 (Oct 16, 2011)

RJ lindblom;1529075 said:


> I believe it a state statute. As much as attorneys have a bad name, sometimes they can do you a lot of good. Even if they answer your questions, or take the case. With small claims actions it is often easy to handle it _pro se_ or "do it yourself." Often the plaintiff can ask for the defendent to pay any fees associated with collecting the debt. Including filing fees, attorney fees, processing fees etc.
> 
> Once the judge signs off on the judement you still have to go about collecting the money. Sometimes a court order is all it takes, other times it takes liens or garnishments.
> 
> In many states it shoulnd't matter that you're an LLC trying to collect as far as the court system see's it.


A local lawyer told me that he is able to represent in small claims but that our judges look at small claims as an avenue for do it yourselfers and DO NOT like to see lawyers in small claims.
He said that in small claims here the judge is much more likely to rule in favor of the claimant as they are the defendant as long as there are no lawyers involved.
Bring a lawyer with you in small claims to sue over a matter and the judge is likely to find a technicality to throw it out.


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## tuney443 (Jun 25, 2006)

BPS#1;1529105 said:


> A local lawyer told me that he is able to represent in small claims but that our judges look at small claims as an avenue for do it yourselfers and DO NOT like to see lawyers in small claims.
> He said that in small claims here the judge is much more likely to rule in favor of the claimant as they are the defendant as long as there are no lawyers involved.
> Bring a lawyer with you in small claims to sue over a matter and the judge is likely to find a technicality to throw it out.


That is basically correct,especially in towns where the judge himself is not a lawyer,just a lay judge who can be a farmer,contractor,or whatever and that type is great because usually they have simple common sense and can see through any BS coming out of the defendant's mouth.You do need a case though with all your paperwork in order,dates,etc.Like I said,I've always won when I was able to go to small claims,but on one case the deadbeat client beat me on collecting the debt because of a technicality.


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## RJ lindblom (Sep 21, 2006)

BPS#1;1529105 said:


> A local lawyer told me that he is able to represent in small claims but that our judges look at small claims as an avenue for do it yourselfers and DO NOT like to see lawyers in small claims.
> He said that in small claims here the judge is much more likely to rule in favor of the claimant as they are the defendant as long as there are no lawyers involved.
> Bring a lawyer with you in small claims to sue over a matter and the judge is likely to find a technicality to throw it out.


Yup. That makes sense.



tuney443;1529119 said:


> That is basically correct,especially in towns where the judge himself is not a lawyer,just a lay judge who can be a farmer,contractor,or whatever and that type is great because usually they have simple common sense and can see through any BS coming out of the defendant's mouth.You do need a case though with all your paperwork in order,dates,etc.Like I said,I've always won when I was able to go to small claims,but on one case the deadbeat client beat me on collecting the debt because of a technicality.


Every state does it a bit differently. Around here, a magistrate (who has a law license) will hear small claims action, they also hear small matters like traffic tickets etc. Circuit court judges hear larger civil issues (divorces or claims of more then $12,000 and criminal cases.


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## BossPlow2010 (Sep 29, 2010)

36$ to sue someone 
Includes certified letter
And a date to have it.
You go into moderation and argue a little bit then the judge sees you if you don't settle it and its a pretty big hassle if it's only a few dollars.


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## Wilnip (Oct 4, 2011)

And don't forget a judgement still does not mean they have to pay you. I have about 10 judgments in a file that we are getting ready to go to the courthouse in file a sheriff sale on their property to get what's owed to us. Just make sure you want to follow through with if you decide to sue


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## birddseedd (Jul 12, 2010)

yea. thats true. and it does cost you more money. frankly money i jsut dotn have right now. might jsut turn them into a collector.


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## Spool it up (Oct 30, 2012)

birddseedd;1528871 said:


> a few customers owe me 100 - 300.
> 
> is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


what collection agency do you use ? what is their percentage ?


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## birddseedd (Jul 12, 2010)

Spool it up;1549159 said:


> what collection agency do you use ?


never had to before. so dont have one yet


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## thelettuceman (Nov 23, 2010)

I am waiting for someone to say:

Plow them in next time

To the Original Poster: Almost everyone on this site feels your pain. Good Luck getting paid and lettuce know what happens.


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## birddseedd (Jul 12, 2010)

thelettuceman;1549307 said:


> I am waiting for someone to say:
> 
> Plow them in next time
> 
> To the Original Poster: Almost everyone on this site feels your pain. Good Luck getting paid and lettuce know what happens.


that would be funny. 6' of snow from one end of the drive to the other. could you get into trouble for it?


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## Meezer (Apr 3, 2010)

birddseedd;1528871 said:


> a few customers owe me 100 - 300.
> 
> is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


slap them with a mechanics lienThumbs Up


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## birddseedd (Jul 12, 2010)

Meezer;1549433 said:


> slap them with a mechanics lienThumbs Up


idnt knwo i could untill was too late.


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## TGreen (Dec 27, 2012)

Dial up the "aggression factor" just a little bit more. In other words, aim high. Don't be lulled into complacency or let the continued talk of doom and gloom handcuff you. You might be okay now, but that doesn't mean you will be tomorrow and you have to keep pushing. Every company has A/R issue so don't feel you're alone. 

To succeed and to stay successful, companies must be on their game 24/7. And that warrior mindset begins and ends with the business owner, CEO or COO; you are the one who sets the “tone” for the business no one else. Find the time to work your A/R consistently or find a partner who can help you that's economical.

T Green


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## Spool it up (Oct 30, 2012)

TGreen;1549776 said:


> Dial up the "aggression factor" just a little bit more. In other words, aim high. Don't be lulled into complacency or let the continued talk of doom and gloom handcuff you. You might be okay now, but that doesn't mean you will be tomorrow and you have to keep pushing. Every company has A/R issue so don't feel you're alone.
> 
> To succeed and to stay successful, companies must be on their game 24/7. And that warrior mindset begins and ends with the business owner, CEO or COO; you are the one who sets the "tone" for the business no one else. Find the time to work your A/R consistently or find a partner who can help you that's economical.
> 
> T Green


possibly a silent partner :laughing:


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## Shade Tree NJ (Dec 26, 2010)

Can always go the theft of services route, kinda harsh for a few hundred.


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## MarineSniper (Nov 25, 2009)

Had such bad experiences with CT small claims courts I don't even bother. Judges here basically do not want to be bothered listening, or looking at documents. I have had to file writs of execution to sweep bank accounts for additional money but most of the deadbeats just empty their accounts. I had one person actually counter sue me the same day in court- She owed me 150, sued me for 1400.00 claiming 2 years earlier I was supposed to grind stumps for her. I never even heard of the stumps before that day and she never paid me to do them. Figured the judge would realize since she did not pay me to do the stumps he would realize it had nothing to do with the 150 for plowing. Well, I lost and because I am an LLC I got to pay her in full within 30 days. Easier just bothering the deadbeats with letters and phone calls. Hell, the ones that stiffed me get Christmas cards thanking them for being such deadbeats and hoping their holidays suck.


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## camp61 (Nov 20, 2011)

birddseedd;1528871 said:


> a few customers owe me 100 - 300.
> 
> is it worth the time and expense to take them to court? or just hand it off to a collection agency even tho ill only get part of the cash back.


birddseedd, In this day and age of unemployed people, just find someone, perhaps family that has the time to call and stay after them. Be your own collection person. Persistence does pay. My wife and I own a seasonal campground and she has done collections for several other people. It can be done! Who ever you have do it have them research what you can do and what you can't. Don't need to be breaking any laws but you have to be aggressive. Letters. phone calls. Just wear them down.


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## birddseedd (Jul 12, 2010)

MarineSniper;1550685 said:


> Had such bad experiences with CT small claims courts I don't even bother. Judges here basically do not want to be bothered listening, or looking at documents. I have had to file writs of execution to sweep bank accounts for additional money but most of the deadbeats just empty their accounts. I had one person actually counter sue me the same day in court- She owed me 150, sued me for 1400.00 claiming 2 years earlier I was supposed to grind stumps for her. I never even heard of the stumps before that day and she never paid me to do them. Figured the judge would realize since she did not pay me to do the stumps he would realize it had nothing to do with the 150 for plowing. Well, I lost and because I am an LLC I got to pay her in full within 30 days. Easier just bothering the deadbeats with letters and phone calls. Hell, the ones that stiffed me get Christmas cards thanking them for being such deadbeats and hoping their holidays suck.


wow. that judge must be horrible. or knew the person.


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## MarineSniper (Nov 25, 2009)

Probably did not know the lady but when the session started he said "OK, we have 8 cases to cover and I don't want to be here for over an hour, let's begin" The judges in CT get assigned to small claims and feel it is pretty much beneath them. Funny thing is, this happened 2 years ago and those stumps are still in her yard. Hate wishing death on people, and have seen too much in my lifetime, but hell if I don't read the obits every morning hoping to see that name.


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## tuney443 (Jun 25, 2006)

Birdseed,you would probably have your money by now if you filed the paperwork for Small Claims Court.You have nothing to lose and everything to gain so git er dun already.Just getting an appearance letter from the court will sometimes have a deadbeat client write you a check to avoid the hassle.


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## kg26 (Feb 5, 2013)

How do you send an account to collections, and or to small claims court.


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## birddseedd (Jul 12, 2010)

kg26;1588437 said:


> How do you send an account to collections, and or to small claims court.


collections you call a collections company and ask them to sign up. they send you paperwork to read and sign.

to take someone to collections you go down to the small claims court, pay 25 dollars or so, and get a court date.

and if anyone wonders. when i get paid for plowing. ill be taking a few people to court.


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## grandview (Oct 9, 2005)

Anyway, I doubt a collection agency will even bother to help you collect this. Waste of time.Next time if this happens you send them the bill with a letter starting your going to small claims court in 7 days if not paid in full. Then most cases you can add a % into for your expenses.


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## birddseedd (Jul 12, 2010)

grandview;1588540 said:


> Anyway, I doubt a collection agency will even bother to help you collect this. Waste of time.Next time if this happens you send them the bill with a letter starting your going to small claims court in 7 days if not paid in full. Then most cases you can add a % into for your expenses.


anyway, yes any collection agency will take a 300 bill. i see it happen all the time.


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## Raymond S. (Jan 8, 2008)

Rapid Recovery Solutions is who I use. They have a Final Notice letter you can send. If this doesn't work then I just hand them over. I have about $1500 with them right now. I figure at least they can bother the piss out of them.


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## snow4me (Oct 8, 2008)

thelettuceman;1549307 said:


> I am waiting for someone to say:
> 
> Plow them in next time
> 
> To the Original Poster: Almost everyone on this site feels your pain. Good Luck getting paid and lettuce know what happens.


The last contractor did that to my deadbeat customer. She called me and asked why I plowed snow up against their truck the first time I plowed for her 6 years ago. When I told her I didn't do it she blurted out oh that probably Barrone Landscaping. She still hasn't paid me $453 from last winter snow plowing and she hired another contractor whom I feel sorry for.

I called Barrone and he told me his snow removal company, his cousins landscape company and the previous snow removal company all got stiffed by the Goldman family. He is the one who personally plowed her in...he says he has a lien on her property but I won't go that route because a lien has to be renewed (fee paid yearly) or it just falls off the records.

I am looking for a good collection agency to hassle the hell out of her with phone calls before I file small claims suit against her.


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## birddseedd (Jul 12, 2010)

I would talk to a lawyer. I'd she is doing this over and over it has to be a crime


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## locqus (Dec 13, 2013)

Double edge sword on both fronts. I hate even having those two options because both hurt you in some way. I have tried both and they both lead to the same goal through a path that costs. I would rather plow their driveway in and wait out front in the morning to get payment. No one heard me say that!


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## Urdum2 (Dec 31, 2008)

Have you tried the barter system yet......maybe trading your cash that she has for say tv...jewerly....gun...say hey fill my tank up ..a lawn mover, family pet, anything that has value....I would even offer them free plowing for the next season( no contract of course and then the oh ya I forgot)... But if you know have them pay or be hassled, you will have another fifteen wanting same services and same payment plan


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