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We are in the business of supplying highly skilled IT consultants to consultancy companies on a contract basis. We have a US company which has entered into a contract with a US Consultancy to supply a contractor through the contractors incorporated company.The consultancy have not paid for the contractors time, and other than a small amount of expenses we have not paid the contractors company.Of course we are aware that the contractor company has a right to take us to court to get the money and then we would have to take the consultancy to court to get our money. There is very little profit margin in this contract for us to start legal proceedings. But the contractor has a relatively large incentive to get his money.What steps do we need to take to have the debt/contract from our US company between us and the Consultancy moved to the contractor ?Can the Contractor buy this debt from us and then go after the end Consultancy in their own right ?
Optional Information: State/Country relating to question: Georgia Already Tried: Nothing
Yes, you can enter into a written contract "subrogating" your rights to sue the company to your contractor. This is basically selling them the debt, which means they would then get to stand in your shoes to file suit against the company to collect the debt. You need to do this in a written contract with your contractor.
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