I and my friend were working for one US client based in illinois (remotely from Bangalore) earlier he promised us that he is going to pay us a salary of US$ 3/hour for the back office work for his IT recruiment work. we supported him for 3 months.. but he didn't give us not even single dollar. he didn't give us offer letter also. now he is telling good bye to us. He said he is going to close his business and he has no money to pay us. the proofs all we have is his job orders which he sent us. and chatting infomration....kindly drop us your suggetions regarding how to proceed with this legally.
2007-07-06 08:15:14 · 5 answers · asked by raj bangalore 1 in Business & Finance ➔ Other - Business & Finance
Unfortunately, the only way to get your money is to take legal action against him. This would cost a great deal of money (mostly because you would need to take the action in an Illinois court). But even if you are successful in your legal action, if he has no money, then there is no money to pay you.
I'm afraid that you made a severe mistake. If you are working for a new client you should always require prompt payment, especially the first few months. In fact, for international clients I insist on billing bi-weekly. If you sent him an invoice for work and he did not pay, you should immediately notify him and warn him that without payment you will have to suspend services until he does make a payment. In that case you still might have not been paid, but then you would have only invested 3-6 weeks of work, instead of 3 months.
Unfortunately, I think your only option is to learn from your mistake. Good luck.
2007-07-06 08:31:00 · answer #1 · answered by rlloydevans 4 · 0⤊ 0⤋
You're going to have to see if he was set up as a corporation or limited company. If he is claiming bankruptcy you may be entitled to some payments when the bankruptcy (lawyer) firm figures everything out.
If he was self employed without having the "protection" of being incorporated or limited, talk to a lawyer from Illinois he should still have to pay you. It's just a matter of how much he owes you verses the amount a lawyer will charge you, then.
You can also try contacting a credit collection agency. They will need copies of your orders and they will try to collect from him with interest and fees. They take a small percentage of what was owed as their payment for the service plus they keep the fees. They will also put a claim in the credit reporting agencies that will give him or his company a bad credit rating
What ever happens use this as a learning experience. Always ask for credit references and banking info before doing any work. If they don't have it or refuse to give it, then beware, they are trying to hide something.
Good luck
2007-07-06 08:48:35 · answer #2 · answered by gino 3 · 0⤊ 0⤋
You can file a lawsuit against the company for payment due on services rendered, but you will need to find a reputable lawyer in Illinois to handle the case. It will also depend on how much the total bill was worth because there is a possiblity that legal fees may exceed the payments due. Last question, do you know if this was a legitimate business that was incorporated in the US? Is the owner really closing his business or is he filing for bankruptcy? In any event, try to find a lawyer in Illinois that you can consult with.
In the future, for payments to you that may be sizeable, you might want to have your clients go to their bank and require them to issue your business a letter of credit for payments due.
2007-07-06 08:34:26 · answer #3 · answered by PK 5 · 0⤊ 0⤋
Contact the Better Business Bureau and file a complaint
2007-07-06 08:23:01 · answer #4 · answered by banananose_89117 7 · 0⤊ 1⤋
So sorry, but, just learn from this and move on.
He is a bad Man and one day He will pay for this in some way.
You, however, will not get paid for your work.
2007-07-06 08:24:54 · answer #5 · answered by TODSHISHLER 4 · 0⤊ 0⤋