Legal Question in Business Law in California
Credit, Bililng
I own an accounting office, we have done a number of servcies for different clients, we have a verbal agreement to pay every month, it has been a few months now and no payment is forthcomming, how do i file a lien against a bad customer?
3 Answers from Attorneys
Re: Credit, Bililng
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.
What balance amounts are we talking about? Try sending a demand letter to your clients by Certified Mail. If they still don't pay, your choices may be to sue them or to turn over these bad debts to a collection agency. Under California law, the statute of limitations to sue on verbal agreements in 2 years, and for written agreements is 4 years. You should immediately consult your own attorney to protect your legal rights.
Re: Credit, Bililng
You don't. Liens arise only after you file suit and obtain a court judgment and record it. If the amount of your claim is under $7500, file a small claims case. If over that, consider hiring counsel to do so in Superior Court. Feel free to contact me if serious about doing so.
Re: Credit, Bililng
Don't Do Stuff Verbally. You should have a contract that your clients sign, and you should pay a lawyer to write it. Hopefully you are at least sending out monthly invoices. Take the client, and the invoices, to small claims court in Westminster.
If you win, the court will give you a "judgment" which can be recorded with the county recorder if the client doesn't pay, only at this point does it become s "lien." Watch out for legal time limits.
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