Legal Question in Credit and Debt Law in California
collecting money due in a down economy
We had a business but settled with the other person for $50K to be paid to us by within 4 months. Now, he said there is no way he has the money even though he owns property blaming a down economy and he states he is over-extended. We have a written agreement for him to pay us. Is it worth it to take him to court taking the chance that he probably has the money (and going through the expense of court) or is it better to try to come to terms of collecting $1000/mo until it is paid off?
2 Answers from Attorneys
Re: collecting money due in a down economy
Sue now. If he doesn't have the money now, he won't later, and your judgment will earn 10% interest while you await better times. Maybe you will go up a couple of places on his priority list.
Re: collecting money due in a down economy
I agree with Atty Stone that suing now is a viable option. Your other option would be to rewrite your agreement on payment terms with interest. Certainly if you are giving up something, you should receive something equal in return. In this case, interest on the payments sounds like a reasonable request.
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