Legal Question in Credit and Debt Law in California
Do I obtain a lawyer to collect 25,000 debt from a company I provided work for?
I provide a service to the med/legal community, working direcly for defense attys & their carriers. Another agency that provides the same service I do, ordered the services of my company directly, not on a lien or through an insurance carrier, for numerous assignments over the last couple of years. At first they paid our bills on time, then slowly began to pay late and now not at all, even after several requests via letter, phone & fax and even a verbal agreement with the owner to make weekly pymts of $1000 until the balance was reduced. They continue to claim they will pay but have not paid anything for several months. I am afraid if I sue them, they will claim bankruptcy and then I will get nothing. The outstanding debt is 25,000, is that amount more suited for small claims? And is there a statute of limitations? Thank you.
4 Answers from Attorneys
Re: Do I obtain a lawyer to collect 25,000 debt from a company I provided work for?
Statute of limitations is at least 2 years, possibly 4 depending on the circumstances. Recommend that you do not provide any more services until they begin paying. Also that you retain an attorney to contact the other company and demand payment before filing a suit; and if that doesn't work, then file suit.
Re: Do I obtain a lawyer to collect 25,000 debt from a company I provided work for?
%25,000 is Civil Jurisdiction. It sounds like breach of contract based on lack of notice of termination. You may contact me for a free consultation.
Re: Do I obtain a lawyer to collect 25,000 debt from a company I provided work for?
Do you have a written contract? I hope you do, and that it says 1) you get attorney fees if you have to sue them, and 2) if the services were rendered to a corporation, that the owner is personally liable. Next time involve an attorney up front -- to draft your contracts. In the future run credit reports on your customers often and don't allow yourself to become their financing entity. Now, hang up from the internet and call a lawyer and make an appointment. Sue them. Pray that you collect. The lawyer you retain will advise you on the statute of limitations.
Re: Do I obtain a lawyer to collect 25,000 debt from a company I provided work for?
The limit for small claims in California is $7500 for individuals and $5000 for all other plaintiffs. Feel free to call me if you want a free consultation with an experienced collection attorney.
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