I've got a business that delivers meat to restaurants here in California. There is this one restaurant who haven't paid for their statements for over three months already. The amount they owe me is about $29,000.oo. I've already cutted them off but now the owner is avoiding my visits and calls. If I hire lawyers to get it for me, will they be responsible for my lawyer and court fees. Because I don't think its fair that I have to spend more money to get my money. Anyone know?
2007-05-31 09:31:51 · 6 answers · asked by xxthink2muchxx 2 in Business & Finance ➔ Small Business
No.. there was no contract to begin with. In my community, we base our business on trust. I know its stupid and I've learned my lesson. What kind of lawyers should I search for in the yellow pages? This guy told me he will pay me but keeps telling me to wait till next month. He did this for two months already. Now I can't even find him at the restaurant and he won't take my calls. I did however get his personal info from a business partner who also does business with him. I mailed him a letter telling him that if he don't pay, i will sue, and I included his personal info in the letter just to show him that I have it and can ruin his credit. He still hasn't called back. And my creditors are breathing down my neck for the money. HELP!
2007-05-31 09:55:21 · update #1
If you already threatened legal action, your next step is filing a lien, it sounds like this guy has serious financial issues, if he goes out of business your lien will guarantee you a cut of what is liquidated. Contact your local small business accociation for help filing the lien.Then start your process in claims court if he plays hard to get with them & doesn't appear for court you automaticly win a judgement against him and his personal property too. It sounds fairly cut & dry so you might not need an attorney, however if you do the costs should me minimal. Meanwhile negotiate with your supplier & make sure they are aware of the situation, they will probably be willing to negotiate some sort of repayment plan with you because of the circumstances. Tell them you want to maintain a good relationship with them. If that doesn't work, try taking out a loan to repay the vendor in full, in this case the bank may help you with some leverage against your customer.Regardless its going to cost you money beore you get your money from your customer so you might as well start working on it. On the upside when you get your money back what you have already repaid will be yours free and clear.
2007-05-31 10:25:48 · answer #1 · answered by lightningnstars 2 · 0⤊ 0⤋
I'm not a lawyer, just a business owner who has been there too.
I've never failed to regret carrying a customer beyond the point where I started getting nervous about them. It never works out.
At this point, the damage is done. You are $29k in the hole, and they aren't paying. But you've done the right thing in cutting them off.
A few things I'd do to try to get paid.
First, show up in person at least a few times a week. The old saying "the squeaky wheel gets the grease" is true. You are almost certainly not the only creditor that is coming after them. Make sure you stay on the top of their list. Make sure they understand that you expect at least some minimal good faith payments starting now.
Second, if they don't cooperate, have your lawyer write a demand letter. In the spirit of the squeaky wheel, a lot of times that will shake them loose. Make a little bit of a production out of it...make sure it is either sent via USPS with return receipt service, or have a legal courier company hand deliver it to the owner. Even with the lawyer fees, you are talking a small amount of money at this stage.
Last thought. Before you do any of this, ask yourself if you think they actually have any money. If they really and truly don't have any money, then you are wasting your time. The most you can hope for at that point is to get a few hundred a week, but at that rate you would be better off finding new business.
2007-05-31 17:21:09 · answer #2 · answered by AngiesHusband 5 · 0⤊ 0⤋
Did you have any kind of written agreement with the restaurant? In future, I would not let somebody get that far behind before cutting them off. You are certainly within your rights to hire an attorney in hopes of collecting your money. If it goes to court, you might well be able to get a judgement that includes attorney fees, but you still have to collect.
Drop by to eat and tell the owner it comes off the bill. At $29,000 that is a lot of eating.
2007-05-31 16:39:41 · answer #3 · answered by PK 4 · 0⤊ 0⤋
Is there anything you can take in trade?. Have you shown up at the business, maybe when it is a slow day for you and WAIT til he cuts a check. Run to the bank if he should do that as a bad check is a felony. How much can an you afford to lose if he doesnt pay you anything. He probably owes a lot of people, not just you. It's not fair, but it is the cost of doing business since you extended credit to him for so much.
2007-05-31 16:37:35 · answer #4 · answered by hirebookkeeper 6 · 0⤊ 0⤋
You are advised to seek qualified legal representation to attempt to gain payment of the debt. I'd venture that the restaurateur is short of funds, which is why you are being avoided. Do not delay in pushing forward with your debt collection efforts. The longer you delay, the deeper into debt this person will go, and you may end up with nothing.
2007-05-31 16:36:30 · answer #5 · answered by acermill 7 · 1⤊ 0⤋
I believe that you can put a lien against the restaurant. Or try these
http://www.cafelaw.com/
http://www.lawyer.com/
2007-05-31 16:49:59 · answer #6 · answered by Cheryl 6 · 0⤊ 0⤋