Legal Question in Credit and Debt Law in California
collecting debt from llc company
recently, an llc company has stopped payment for no explained reason on a check they issued for services provided by my company. my question is as follows:
1. can i sue an llc company in small claim court for the maximum amount allowed of $1500.00 if a check from such company for the amount of $983.00 was returned to me with a ''stop payment''.
2. what other legal recourse do i have against an llc construction company to try and collect the debt.
your efforts, help and advice are greatly appreciated.
thank you
--name removed--
2 Answers from Attorneys
Re: collecting debt from llc company
Small claims is the proper court in which to sue. The maximum is $5000, not $1500. You can only recover your losses plus court costs. However, sometimes you can get a judgment for 3 times the amount of the check if it is returned. If the other party had any basis for puting a stop payment on the check, such as you had not provided all services, you will not be entitled to this bonus.
Re: collecting debt from llc company
Yes you may sue them in small claims. You might want to sue the LLC and the members individually as well.
The sooner you act the better. Good luck-Martin
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