Debt Collecting Q & A – Issue #9

Dear Jim –

I had a realtor client who was representing a new development. I agreed to do a logo for them in order to get the contract for marketing this new development. The realtor paid half the invoice for the marketing materials and nothing more, despite sending certified letters and threatening to withhold usage of the logo. My lawyer says I have a case but his fees would be more than the amount I'm owed. And even if I did win in small claims court, would that judgment have any teeth? Would I be able to collect? Is it even worth the hassle?

I'm a believer in making phone calls to the parties concerned – even in personal visits when necessary. I'd call this person every single day for an entire month. Ask him if his lack of action is standard business procedure for them. As him: "Am I the first guy you are trying to rip off or do you do this to everyone?" Ask him right out whether you need to take legal action, and if so, what's their defense going to be? Write down everything they say in case you need it in court.

You might also look for a lawyer who won't charge as much as the one you've talked to. Better yet, take your notes to the clerk of courts office and start a suit yourself (it's not that hard – your local library has books on this). Yes, the judgment will be vital in collecting the debt. Sue the individuals personally, not the business. Try to get a lien placed on their property or garnish their wages. You're being taken advantage of. It's your money and you deserve to be paid!

By the way make sure your future contracts include an 8% interest charge on amounts unpaid after 60 days and an additional fee for any costs you may incur in collecting the past due amount.