Legal Question in Business Law in Texas
Money owed, what do we do?
I own a small Landscaping business, and another small business owes me money for a verbal agreement. The agreement was that my company mow property weekly, and they paid us, weekly. They have ignored our phone calls repeatedly. Sometimes, they will agree to pay, but never call back. We stopped providing services about 3 weeks ago, but it has been over two months since we have recieved any form of payment. What are our options, and what should we do first? Do we have to send notices by mail even though we have spoken directly to them in the past month?
2 Answers from Attorneys
Re: Money owed, what do we do?
Jurisdiction for Small Claims Court in Texas is $5,000.00. Most small claims cases are filed and tried without attorneys because the amounts frequently are much less than $5,000.00 and the rules for pleading and evidence are relaxed. To file a small claims court lawsuit, go to the Justice of Peace in the pricinct where the debtor is located. (The Justice of Peace is the judge over the small claims court). Depending on the county, your court costs will be about $75.00 to $125.00. The court costs will be added to the judgment if you win. If you get a judgment, have the JP's office to give you an abstract of judgment. Take the abstract of judgment to the county clerk for filing. That will create a lien on any non-homestead property owned by the defendant. If your bill is over a $1,000.00 you might want to talk to an attorney first.
Re: Money owed, what do we do?
It is essential that you make written demand sent by certified mail. Use return receipt requested, since that will be proof of your demand. Make sure to keep a copy of the demand letter. If the amount is under $5,000, ten days after the date shown on the green return card you can file a complaint in Small Claims. You don't need a lawyer for that. If the amount they owe you is over $5,000 you'd best contact a lawyer that handles collections.
Keep together any records showing that you've done the mowing, and made demand for payment.
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