Legal Question in Credit and Debt Law in New York

Nonpayment of Services Rendered

We are a small business with a client who owes a large sum of money. This client has not responded to several of our phone calls, letters, invoices and faxes. It has been months since he has paid anything and usually he only pays 1/4 of what he owes. What are our legal rights in collecting the money owed to us? All services in a signed contract have been done.


Asked on 12/19/02, 3:42 pm

4 Answers from Attorneys

Thomas Luz Pearce & Luz LLP

Re: Nonpayment of Services Rendered

Assuming you have given up on begging, wheedling, and otherwise demeaning yourself for 25% of what is due you, you have three options. First is to let the deadbeats walk away. This is the easiest, most hassle-free approach. Obviously, the return is fairly small. Second is a collection agency, which will pursue the debt for a percentage of the amount recovered. Collection agents make themselves an extreme pain in the derriere and are sometmes successful. For the especially difficult debtor who is good for the money, but simply refuses to pay, there's option 3, which is to get an aggressive lawyer and sue. Lawsuits are expensive and time-consuming, but if the debt is big enough and you're not getting paid any other way, it's a pretty good way of getting some money back.

Happy to share more information if you need it.

Good luck.

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Answered on 12/19/02, 4:25 pm
Peter Agulnick Peter M. Agulnick, P.C.

Re: Nonpayment of Services Rendered

If it�s a fairly large sum of money, as you say, I suggest you obtain an attorney and commence a lawsuit. Because you�ve performed all your obligations under the contract, it sounds like you likely have a meritorious lawsuit. Assuming that the person or company that owes you the money is not �judgment proof� (meaning he has no money or assets), it is possible that you have a good case.

Often, lawyers - - such as myself - - will take such a case and not charge an attorney fee unless there is a recovery.

I welcome you to call me for a free consultation if you would like to talk further: 212-535-1091.

Best of luck.

-Peter

==========================

PETER M. AGULNICK

ATTORNEY AT LAW

321 Broadway, 2nd Floor

New York, NY 10007

Tel. 212-535-1091

Web: www.agulnicklaw.com

==========================

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Answered on 12/19/02, 6:21 pm

Re: Nonpayment of Services Rendered

You can sue for breach of contract. I'd be happy to offer you a free initial consultation and work with you on an hourly or contingency basis, as you prefer. Feel free to contact me if you'd like to discuss this further.

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Answered on 12/19/02, 7:33 pm
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Nonpayment of Services Rendered

A commercial/business litigation law firm, which will work on an contingency fee basis (should you desire), is well-suited to initiate the collection process (whether through litigation or pre-litigation overtures).

-- Kenneth J. Ashman; Ashman Law Offices, LLC; www.lawyers.com/alo

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Answered on 12/26/02, 8:43 pm


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