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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19307
Experience:  B.A.; M.B.A.; J.D.
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My company has been contracting an employee to another company

Resolved Question:

My company has been contracting an employee to another company for the past 4 years. My employee was serving as the VP of sales for the company we contracted with. The past two years we have received little to no payments (fee, commissions, penalty). We worked with owner of this company to help them through their issues but still no payment. On Friday we met with the owner of the company and offered several debt repayment plans to work with him further. He told us the only way he was going to pay him was for my company to sell more and pay off his other debt then my company will see the money he owes us. I told him that he should have communicated his business state instead of hiding it and avoiding us the past two years. I told the owner that my company will cease any further business and will look to collect the outstanding balance the company.
Submitted: 5 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 5 years ago.
Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

I have carefully reviewed your post. However, I did not see any question.

What is your question?
Customer: replied 5 years ago.
My question is what are my legal options to get the monies my ex-client owes me
Expert:  Phillips Esq. replied 5 years ago.

Thank you for the information


Your initial post:

My company has been contracting an employee to another company for the past 4 years. My employee was serving as the VP of sales for the company we contracted with. The past two years we have received little to no payments (fee, commissions, penalty). We worked with owner of this company to help them through their issues but still no payment. On Friday we met with the owner of the company and offered several debt repayment plans to work with him further. He told us the only way he was going to pay him was for my company to sell more and pay off his other debt then my company will see the money he owes us. I told him that he should have communicated his business state instead of hiding it and avoiding us the past two years. I told the owner that my company will cease any further business and will look to collect the outstanding balance the company.

My question is what are my legal options to get the monies my ex-client owes me



Response: If you have now gone for two years or more without payment, you need to refer the account to a collection agency and let the collector attempt to collect the debt and eventually file a lawsuit to collect the debt. As a business, you cannot represent yourself in Court. You must retain an attorney that would assist you. Some collection agencies are also law firms. So, you would want to retain a collector that is also a law firm. So, if a lawsuit has to be filed, you do not need to bring in another attorney.

You can use the following sites to find local attorneys/law firms that handle collections cases:



http://www.lawyers.com




http://www.justia.com




http://www.attorneypages.com





Customer: replied 5 years ago.
I want to put a lien on his business that is secured. How do I go about doing this. I am not going to a collection agency. That is a waste of time. I am going to hire a local attorney but trying to find out what options I have before I meet with the attorney
Expert:  Phillips Esq. replied 5 years ago.

I want to put a lien on his business that is secured. How do I go about doing this. I am not going to a collection agency. That is a waste of time. I am going to hire a local attorney but trying to find out what options I have before I meet with the attorney


Response
: You need to get an attorney to file ex parte complaint to put a lien on the business and/bank accounts and at the same time file a lawsuit against the company. This is a pre-judgment attachment meant to prevent the company from hiding or disposing of its assets before a judgment is handed down in the case. An ex parte complaint means that the complaint would be heard without giving notice to the business. However, after the Court has made a decision on the complaint, the company would be given opportunity to oppose the attachment by showing that the company has business insurance to cover any Court Judgment. If there is a valid insurance, the attachment would be lifted.

You may also send to the company a final demand letter to be paid or else a lawsuit would be filed.

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