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I own a service company that contracts aircraft mechanics…

Customer Question
I own a service...

I own a service company that contracts aircraft mechanics out to airlines and airline maintenance companies.

Lawyer's Assistant: What state are you in? It matters because laws vary by location.

Arizona. One company (client) who used my company's services ran up a debt of over $80,000. The contract reads that the client must pay on time. They have not paid on time; however, they are making small token payments, insisting that if they make small payments I cannot go to a collection agency. Is that correct?

Lawyer's Assistant: Has anything been filed or reported?

No

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

How much will this cost?

Lawyer's Assistant: It can cost anywhere from $10 to $100, depending on the type of issue and how much of the Lawyer's time your question is expected to take (how complex and lengthy an answer you require).

Just a yes or no.

Submitted: 7 months ago.Category: Legal
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Answered in 3 minutes by:
12/11/2017
Lawyer: LegalPro54, Lawyer replied 7 months ago
LegalPro54
LegalPro54, Lawyer
Category: Legal
Satisfied Customers: 14,360
Experience: General practitioner with diverse legal experience.
Verified

Good evening and thank you for entrusting me to assist you. My name is ***** ***** I will do everything I can to answer your question.

There is no legal requirement that a business refrain to referring a debt to collections if payments are being made on the debt. The business cannot reject the partial payments, and must apply them to the total amount owed, but there is nothing in the law that prohibits the business from taking collections action on the remainder. The only exception would be if the specific business contract contained a clause prohibiting this, which would be exceptionally rare and something you would be well aware of because it would have been specifically negotiated.

I hope that you find this information helpful. Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

If you do not require any further assistance, please be so kind as to provide a positive rating of my service so that I may receive credit for assisting you. Very best wishes moving forward.

* Disclaimer *

Just Answer is a venue for informational and educational purposes only. No attorney-client relationship is formed by these communications.

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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