Legal Question in Credit and Debt Law in California

A previous employer owes me $34,000. They promised to pay me back (someday) and agreed to pay 8% annual interest, which they have been doing up to now. Recently, for past two months, they have not paid any interest, nor have they paid back any principal. What steps can/should I take. While I know they intend to pay me back...eventually, I don't want them to get too lax about not even paying the interest....They have been paying me interest, monthly, filing 1099 form annually, for 10 years.


Asked on 5/24/11, 9:57 pm

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

You are being very naive. If the have not paid the principal in ten years they never will. Eventually the company will go broke, be sold to someone who questions the debt, or just stop paying because they know you are a soft touch. Tell them they must set up a defined payment plan, including principle payments, for the next 2 years or you will get a judgment against them and they will have to pay 10% interest until the entire judgment is paid off. Check with the california department of labor about filing a wage complaint [may be barred by time].

Read more
Answered on 5/25/11, 7:14 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California