How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Law Pro Your Own Question

Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24022
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
11688690
Type Your Business Law Question Here...
Law Pro is online now
A new question is answered every 9 seconds

I have a LLC based in Florida which has done some work for

Resolved Question:

I have a LLC based in Florida which has done some work for another LLC based in North Carolina, I have invoiced $52k and I have another $75k to invoice. The other company have not disputed the invoices that have been raised but have said that they can't pay the invoices at the moment and they don't know when they can pay. They have acknowledged the debt in emails and verbally. I don't believe them, what steps can I take to recover the debt ?

I would like to issues something like a statutory demand that would instigate winding up procedure should they not pay. What can I do
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Pro replied 1 year ago.

Welcome to JustAnswer! My goal is to do my very best to understand your situation and to provide a full and complete excellent answer for you.

My name is XXXXX XXXXX I'm going to assist you with your question.

Please bear with me if you believe my answer isn’t coming fast enough because I’m also working with other customers too. I apologize for any seemingly late response.


Do you have a written contract with them?

If so, is there anything in that contract about where jurisdiction would be and what laws would apply if there is a dispute?
Customer: replied 1 year ago.

Hi Fred,


 


I believe that the jurisdiction is North Carolina

Expert:  Law Pro replied 1 year ago.
Then that means you have to sue them for breach of contract where their business is.

That means travel back and forth to NC.


For future reference - you should change your terms of service, invoices, and contracts to state NC is where jurisdiction is and NC laws apply. Then you can sue them in your "backyard" instead of their backyard - they have to come to you instead of you going to them.

Regardless,

You stated and asked:


I have a LLC based in Florida which has done some work for another LLC based in North Carolina, I have invoiced $52k and I have another $75k to invoice. The other company have not disputed the invoices that have been raised but have said that they can't pay the invoices at the moment and they don't know when they can pay. They have acknowledged the debt in emails and verbally. I don't believe them, what steps can I take to recover the debt ?

 

 

You can ask that before you send the products they sign a confession of judgment - which allows you to immediately get a judgment without going through protracted and expensive litigation.

In NC, a judgment by confession may be entered without action at any time in accordance with the procedure prescribed under G.C. §1A-1, R.68.1 if such judgment is for money due or for money that may become due or for alimony or child support. A prospective defendant may file with the clerk of the superior court a statement containing the name of the prospective plaintiff, his county of residence, the name of the defendant, his county of residence, and a concise statement showing why he is or may become liable to the plaintiff. A judgment by confession, upon entry, may have the same effect as other judgments except that no judgment by confession may be held as res judicata to any fact in any civil action except in the action on the judgment confessed.

 

 

Then if you did have to pursue them - you would already have a judgment.

 

 

You could also ask that the owners of the LLC accept personal liability for the debt - that would mean that regardless if the LLC when bankrupt - you could still pursue them.

 

You could ask that the owners of the LLC personally execute a confession of judgment too. That would allow you to go after them personally regardless of what happens to the LLC.

 

 

I would like to issues something like a statutory demand that would instigate winding up procedure should they not pay. What can I do

 


That's really not an option that you can force the dissolution and winding up of the LLC.

You could force them into bankruptcy but that's not the best option for you potentially. If a creditor forces a debtor into bankruptcy, they may not necessarily recoup their debt investment (get paid for their services or products). The bankruptcy trustee (appointed by the courts) will allocate the debtor's liquidated estate to creditors based on a preordained hierarchy outlined by the law. Thus, the creditor who forces the debtor into bankruptcy may not necessarily recoup -- indeed, the creditor may help other higher priority creditors get their funds without being remunerated.

So I wouldn't go that route myself.





I would try to get them to sign a confession of judgment OR be first in line to file suit, get a judgment, and execute asap on the judgment before other creditors file suit.


Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

If you have any questions, about this or anything else, please ask for me, Law Pro, directly in the question and I will try to assist you as best I can.

For example, you would state, "This question is for Law Pro . . . (then on with your question).
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24022
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Law Pro and 3 other Business Law Specialists are ready to help you
Expert:  Law Pro replied 1 year ago.
Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

If you have any questions, about this or anything else, please ask for me, Law Pro, directly in the question and I will try to assist you as best I can.

For example, you would state, "This question is for Law Pro . . . (then on with your question).
Customer: replied 1 year ago.
Dear Law Pro, Apologies, I am travelling and so it has been difficult to get to the Internet. Thank you for your answer, I will follow up with a question shortly, I will rate you very good
Expert:  Law Pro replied 1 year ago.
Thank you!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions