Legal Question in Credit and Debt Law in California

Debt outstanding for small business
I've been supplying merchandise to a customer in California for the past 6 years. The customer started getting slow in payments about 3 years back. Gradually she started paying small parts of dues whenever she needed new goods. However, since last year or so, she completely stopped sending any payments, as she found new suppliers for the goods and shifted to buying from them. I have original oustandings of about $40,000, if I add interest, it gets to about $50,000. Apart from this she also hasn't paid a transport company I used, their outstanding is about $5,000. I have emails from the customer saying she'd pay as soon as her business situation improves and/or her health improves. I live outside the US, customer is in California. How can I claim my dues?

Asked on 9/28/11, 11:03 pm

2 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

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You can always hire a California lawyer and sue, but you have to do so within 4 years if the agreement to pay is in writing, 2 years if the agrement is oral, and they might file for bankruptcy and the debt would then be uncollectible. Even if you sue and win, you then have to find their bank accounts or other assets. Your invoices or contracts should specify that you are entitled to the costs of collection including attorney fees. Please feel free to call.

I should add that we frequently get spam email from would-be debt collection clients who want us to cash fake checks. We don't do that.

Answered on 9/28/11, 11:27 pm

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