Legal Question in Credit and Debt Law in Texas

How do I collect past due invoices from an consulting company (I was a sub-contr

I am not able to collect from a consulting firm that hired me as a sub-contract for a client. The client has declared chapter 11 and the consulting company could not collect all outstanding invoices. My contract was solely with the consulting company. I am from Texas and the consulting firm is located in Nashville. The outstanding due is over 10,000. please help...


Asked on 4/07/03, 1:38 pm

2 Answers from Attorneys

Paul Velte IV Paul C. Velte IV, Attorney at Law

Re: How do I collect past due invoices from an consulting company (I was a sub-c

You sue them, that's how. Problem is, every suit is an investment decision: is the cost and time worth the probable gain? How financially sound is this consulting firm? What does your contract say about what they owe you if they are not paid on the primary contract? Some of those read that they don't have to pay until they get paid. You better doublecheck. Also, check any provisions about where suit can be filed. If you can file here in Texas, I would, as that gives you a tactical advantage, since they will have to come to Texas to defend. Of course, if they have no defense, because you did the work and they owe you, then they may not respond anyway. In that event, you take a default judgment here and then take it to their state and start seizing stuff. Hopefully, they are a corporation? They are easier to seize stuff from, and therefore, more likely to pay you. But if they are just some small outfit that just does not have any money to pay you, all you will do is succeed in shutting them down. But then again, that threat may be enough to get them to the bargaining table and at least make payments to you. Are you sure there is no complaint with your work? I am always amazed at how suddenly poor performance complaints surface just after I sue someone on a deal like yours.

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Answered on 4/08/03, 6:14 pm
Peter Bradie Bradie, Bradie & Bradie

Re: How do I collect past due invoices from an consulting company (I was a sub-c

You'll probably want to engage a Tennessee attorney to sue them in Nashville, unless there's something that can tie them to Texas for purposes of venue and jurisdiction.

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Answered on 4/07/03, 2:42 pm


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