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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 46573
Experience:  32 years of experience practicing law and a businessman.
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I am a small business owner who is owed money by another business

Customer Question

I am a small business owner who is owed money by another business. I have been trying to get the money owed to me for months. Should I send one more email stating I am trying to settle this matter amicably giving them 10 days to remit payment or I will have to hire an attorney? Or do I forgot the email after all of these months and just have an attorney handle the problem. The amount owed is $2000.00. I do not want it to cost me so much that the 2000 will end up as attorney's fees.
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.
<p>Good afternoon. I would not send any more emails...you have apparently been sending them to no avail so no use wasting any effort on those.   Your claim is perfect for small claims court. It is a court set up to be used without lawyers for smaller claims.   The people that work at these courts are usually exceedingly helpful in answering any questions you have and guiding you through the process.    This will allow you to pursue your claim through a court of law while at the same time not having to spend a bunch of money on a lawyer!</p><p> </p><p><em>I hope this has given you the guidance you were seeking. I wish you the best of luck!</em></p><p> </p><p><em> If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would <u>please click the GREEN ACCEPT button </u></em><em><u>NOW</u></em><em>, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.</em></p><p> </p><p><em> If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you. </em></p><p> </p><p><em>The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.</em></p>
Customer: replied 5 years ago.
Do you think this company would be more opt to pay if I had an attorney or do you think using the small claims court on my own is just as effective? In your experience, do most companies pay when summoned for small claims court or does it usually end up going through the full process. How do you go about receiving the money after you win in court? Is it difficult? Additionally, would I file in the state my company resides or theirs?
Expert:  Richard replied 5 years ago.
Ok...Let me address these one at a time....:)

1) Small claims is just as effective...it is a court of law and a judgment coming from this court is just as binding as any other court.

2) Receiving notice that a lawsuit has been filed, in my experience, does wonders to induce a company to pay its debt...especially a legitimate debt, because they know the meter on how much they owe is just going to go up.

3) Once you win your judgment, you can proceed to go after the debtors assets....the court will give you the authority to place liens and garnish accounts.

4) Small claims is not difficult...it is designed for situations such as these to redress smaller claims...

5) You would file in your state...make it more difficult for them and more likely for them to pay to avoid the trouble of traveling to answer the lawsuit.

I hope this has given you the guidance you were seeking. I wish you the best of luck!

If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button NOW, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Richard, Attorney
Category: Business Law
Satisfied Customers: 46573
Experience: 32 years of experience practicing law and a businessman.
Richard and 10 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Sorry about the delay in payment. I thought I had accepted.
OK I now have the full story. Our company tried to come to an agreement with this company in hopes to recoup some of our owed money. There was a letter sent to this company in January of this year stating that after receiving payment of $2000.00 we would not have any other claims against them. To this day there has been no check.
The actual total owed to us is $8289.00. Since no money has been received per the letter, can we say this letter is now invalid and file suit against this company for the full amount? If we can, is it still small claims or would we require an attorney. What is our next step.
Expert:  Richard replied 5 years ago.
No problem...Thanks for the accept.

If there was no check with the letter, there is no accord..which is a fancy legal word for agreement...so you are not bound by that. If that would be acceptable to you, you might follow up to see if they are simply waiting for your agreement in order to send the check.

The small claims court maximum amount in both Colorado and Minnesota is $7500 so if you are owed $8289 you would need to file your suit in a regular court with an attorney.   If you cannot get this settled agreeably, you should proceed with your suit!



Customer: replied 5 years ago.
They did receive the letter. They have been telling us since July of 2008 that they are having cash flow problems. Funny how that works. Had I told them they had to wait for the money I paid to them to receive my product, it would have never have been received.
I am sure I have been to patience trying to work this out. I always hope for the best in people. I do not believe this time it is going to work without a lawsuit. Any other advice you would have for me to continue with this suit. For instance would an attorney seek his fees from the company that owes me? Do you have an idea of how long a lawsuit takes for these types of matters?
Expert:  Richard replied 5 years ago.
I have a feeling just filing the lawsuit will get some action from the other side. It's amazing what being served with a summons for a lawsuit does to encourage the other side.   Even having a preliminary demand letter sent from an attorney can be helpful! You wouldn't need a big high-powered lawyer for this so it shouldn't be that expensive. Especially in the early stages...demand letter and simply filing the suit...the attorney fees should be minimal! I wish you the best!
Richard, Attorney
Category: Business Law
Satisfied Customers: 46573
Experience: 32 years of experience practicing law and a businessman.
Richard and 10 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
Thanks again. You have really helped and it is greatly appreciated.
Expert:  Richard replied 5 years ago.
My pleasure!
Customer: replied 5 years ago.
OK in your experience is it more effective to use an attorney for the lawsuit in getting the money owed our company or doing it on our own through small claims and going after the maximum amount of $7500.00? I am trying to determine the best course of action in retrieving our money. I am not sure how this company would look at the lawsuit from us versus from a hired attorney. I know this sounds repetitive and I apoligize, but for some reason I am really on the fence with this one.
Expert:  Richard replied 5 years ago.
<p>No problem. It is always pretty effective to have a lawyer send a demand letter or file a law suit...That gets the attention of the defendant.   If you can find a lawyer to do this relatively inexpensively, I would do that...this shows them you are serious and they are going to end up paying more money than they would ever pay if they just settle now...that is because now they are looking at the initial debt, plus attorneys fees, plus court costs.   </p><p> </p><p> </p><p><em>I hope this has given you the guidance you were seeking. I wish you the best of luck!</em></p><p> </p><p><em> If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would <u>please click the GREEN ACCEPT button </u></em><em><u>NOW</u></em><em>, so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.</em></p><p> </p><p><em> If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you. </em></p><p> </p><p><em>The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.</em></p>
Richard, Attorney
Category: Business Law
Satisfied Customers: 46573
Experience: 32 years of experience practicing law and a businessman.
Richard and 10 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
OK Thanks! I will seek out an attorney. To bad you do not practice in Colorado.
Expert:  Richard replied 5 years ago.
I know....I would love to be able to help you! Good luck and let me know how you come out.

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