Question

Asked: Nov 04, 2009

We have a customer who is behind on payments. what is best way to collect or place a lien?

a customer owes us $69M in unpaid bills we are concerned they will go out of business and we will be stuck with the loss. Should we consider placing a legal lien on this company? The company is located in Mississippi.

Categories: In Money and Finance > Payment Solutions
In Legal > Legal - Other
Industries: In Manufacturing > Metal Fabrication

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Answers

First, how can you let yourself get behind 69K? That's alot of money! Putting a lien on the Co. will cost $ and won't work if they go Chapter 11 or 7. I am assuming you are an 'unsecured creditor'. Unfortunately, when a Co. or individual (for that matter) owe you money, it is very difficult to collect if they don't want to pay you. Certainly, if they don't need you, the money will be even more difficult to collect. My recommendation is this: (1) try to negotiate a settlement w/ the customer directly. (2) when that does not work, hire the best Collection Agency available. These guys are pros and know how to get blood from a stone. They typically get 1/3 for their fee, however it's negotiable (maybe you can pay 20% based on the large amount due). They get nothing if they do not collect anything on the debt. Good luck and God Bless! Plz let me know how you make out.......

Answered: Nov 07, 2009


The legal steps you can take depends a great deal on what they owe you money for. Do they owe you for construction, merchandise, loans,? It can also depend on whether you have a written or verbal contract.

Answered: Nov 09, 2009


NEED A FEW QUESTIONS ANSWERED. DO WE ALWAYS HAVE TO PRE-LIEN THE HOME OWNER ,ETC/AND ALSO HOW DO WE HAVE THIS DONE AUTOMATICALLY BY ONE OTHER PERSON WHO IS FAMILIER WITH THE LEGAL SYSTEM.why is it always so expensive- we are a very small incorporated plumbing/heating/hvac co. and we do need this service every so often. l

Answered: Nov 13, 2009

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