Legal Question in Credit and Debt Law in California
Debt Collection Options
Hello,
I run a small business buying and selling used items.
I sold 40 of these items at $450 each to a person in California. They were quite big, so I delivered them in a trailer to California from Texas.
The buyer paid for about half, but there is a balance of $6500, which he was supposed to pay within a deadline.
He is now very late in paying the balance, and I'm afraid that he isn't going to pay.
I have emails that discuss our understanding, and the invoices that I sent.
Unfortuanetly, I don't have an official contract.
What are my options? I would gladly take $6500 worth of my items back, but it's possible he's already sold them, etc.
It's a small business, and though that amount won't bankrupt me, I do have a wife and 4 kids to support, and $6500 is way too much to ignore.
Thank you for your help,
Larry
4 Answers from Attorneys
Re: Debt Collection Options
While I concur with Mr. Cohen's suggestion that small claims is the best and cheapest option, there are some significant problems with that option.
Small claims cases are often delayed for one reason or another. If one of the parties one stipulate to using a pro tem as a judge, there is no guarantee that a real judge will be available at the date and time of your hearing. A pro tem is a volunteer attorney who sits as a temporary judge from time to time both plaintiff and defendant must agree for the pro tem to hear the case.
Either party can move the hearing once if they file request at least 10 days before the hearing. This can cause havoc with your travel schedule if you have nonrefundable tickets and your cost of transportation generally will not be recoverable.
You might consider hiring a California attorney to write a demand letter first. You might also consider hiring an attorney on a contingent fee basis, because legal fees are not recoverable in a lawsuit involving a contract without an attorney's fees clause.
Re: Debt Collection Options
You'll need to file suit for the balance in CA.
Please let me know if you want assistance. We also run a collection agency, so we can run him through that first, see if he pays. If not, follow up with the lawsuit.
I can be reached at the info provided by LawGuru, or through one of our firm's sites such as NO-PROBATE.com and CVFinancialGroup.com.
Scott
Re: Debt Collection Options
You'll need to file suit for the balance in CA.
Please let me know if you want assistance. We also run a collection agency, so we can run him through that first, see if he pays. If not, follow up with the lawsuit.
I can be reached at the info provided by LawGuru, or through one of our firm's sites such as NO-PROBATE.com and CVFinancialGroup.com.
Scott
Re: Debt Collection Options
Your best choice would be to file a small claims lawsuit in the county in California where the buyer resides or does business. Once you win a judgment, an attorney could help you collect. The unfortunate part is that you might have to come to CA for the trial of the matter although, at least in Southern CA, the weather's usually pretty nice in the winter.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
