# Collecting Money from a Delinquent...



## Hammer_Nail (Jun 16, 2008)

Any suggestions on how to collect (get paid) from a small Developer? He's over 90 days.. and yesterday, he wouldn't return our phone calls


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## Leo G (May 12, 2005)

Send an intent to lien.


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## Warren (Feb 19, 2005)

90 days!! Are you kidding? Anything past 30 days gets special attention here. After 45 days lien will be in progress. Of course most of my work is residential and I realize that commercial accounts may take longer, but 90 days, I can't imagine that.


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## Rio (Oct 13, 2009)

Put a note on a brick and throw it through his window... Just kidding!

I had a person one time who borrowed some money and kept coming up with excuses but soon it became obvious there was no intent to pay. I told him that I was going to make up a big sign and send my office helper over to where he lived to walk up and down in front of the house with something along the lines of "This guy is a big rip off". He got really flustered and said I wouldn't and I promised him she'd be over there the next day. He paid right up but did live in a tight knit Portugese community where everyone knows everyone else so there was some additional embarrassment potential.


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## laxdad (Jul 22, 2009)

put his pic on your facebook home page with the headline... wanted... MY $ for completion of X 
project at XY drive

=)


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## Trim40 (Jan 27, 2009)

I follow them home.


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## griz (Nov 26, 2009)

90 DAYS

I'll bet you got the song & dance routine that I'll
have a check next week, then it was hey it will be
here tomorrow etc etc. All of a sudden it is 90 &
your still holding the bag. Hope it wasn't alot of money.

Don't know your Lien laws, but you should.
I'd start with a certified letter, document all calls
etc. Try small claims if it's not too much.
Good Luck:thumbsup:


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## Framer53 (Feb 23, 2008)

Hammer_Nail said:


> Any suggestions on how to collect (get paid) from a small Developer? He's over 90 days.. and yesterday, he wouldn't return our phone calls


I have had good luck with a letter from my attorney.

90 days seems like a long time, what does your contract say?


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## CCCo. (Jul 19, 2009)

*Add interest,..its your coin, may as well get paid for financing!*

I have been in this situation before with commercial clients. I write a new invoice with interest, penaltys, and printed it out on bright yellow paper. 

Suddenly they would pay, the original invoice. Something about raising the balance due, with higher increments every 30 days gets their attention real quick. Not sure if it would work for you, but has worked for me more than once.

90 days is actually very normal when dealing with big corporate companys.

I would bill every thirty, then invoice, they hold for thirty,...then process, another 2-3 weeks and payment would arrive,....

I used to do this alot before the economy hit the crapper, and my big clients quit spending. After the first cycle it was on a monthly basis, but yet still 90 out on work completed.


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## CementCreek (Feb 22, 2010)

I'm for the attorney letter. They just need to come to a time frame to pay, then either do or don't. I understand 90 days, I do that some too but it's understood upfront, and if they don't pay we move forward. First a nice letter then the lawyer letter. Just the new letterhead gets their attention. makes em call.


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## greg24k (May 19, 2007)

If you cannot collect with a gentle word, use a gun and a gentle word to collect :thumbsup: Works all the time.


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## mdurbahn (Mar 12, 2008)

you can hire a collection agency and they will give you 50% of what they get from him.


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## rock16 (Feb 25, 2010)

Illinois does not require an intent to lien before a lien is filed. Being 90 days out already, a claim needs to be recorded at the Recorder of Deeds office in the county where the project is located within four months of completion of the work. I think I would get it filed ASAP if you are getting stiffed then there are probably others. Getting yourself in order for payment, is usually the order claims are filed.
Once filed this becomes public record and is there for all his creditors, clients, and the whole world to see it may be the kick in the but they need to get you paid.
(Chapter 770 ILCS 60/1 et seq) Google the stuff in parenthisis it is the Il mechanics lien laws.
Good Luck


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## Five Arrows (Jan 30, 2010)

*face to face*

It is a lot harder to avoid a person face to face than it is over the phone. The reality is that this person may be headed for bankruptcy. Get anything you can. I mean a check for part of it, a truck, tools, jet ski. Anything is beter than nothing and start charging A LOT of interest. I don't know the limits to what you can charge, but my credit card just sent " notice" that the new rate if I ever carry a balance is 24% some of the fine print pushes the number to 29.99% if you are delequent.

I had a customer that owed me 20K once and wouldn't pay. The month I sent them an invoice with 18% interest backdated to the due date I got a check a couple days later (without the interest) at least I got paid.


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## brm1109 (Oct 28, 2008)

Find out where he is doing work now. Go there with a big sign on the sides of your truck that reads so and so does not pay their contractors.
Trust me this works. Had one owe me money, kept avoiding me.
I went to his work site with the sign and left 20 minutes later with a check for the full amount.


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## Fallen (Feb 25, 2009)

If the developer is also the owner of the property you may still be in the game Mechanics Lien wise. Ideally you want to record your lien within 4 months (not 120 days) from your last day of work. If he's not returning you calls, that's cause for concern..NOW. Determine your last day of work. If the party you worked for is also the Owner of the property you can still put your lien on beyond the 4 month window, however you will take a back seat to any secured lenders or other lien claimants who recorded their lien timely. Shoot me a PM if you need more info / suggestions.


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## noahweb (Feb 9, 2010)

:furious: you know people come up missing all the time right? :furious:


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## Silver02TDI (Mar 29, 2010)

Check your state's lien laws. Just to illustrate, in Ontario (Canada), you have only 45 days from "substantial completion" to register a lien. Then you have another 45 days within which you have to take legal action (NOT small claims court - that doesn't count) or else the lien will expire. Figure out if the amount is worth that hassle of registering a lien and hiring a lawyer, or if it's a smaller amount, hire a paralegal and go to small claims court. Or register a lien and let it expire. At least for 90 days (in Ontario) the client will sweat... On a side note, if you've never done small claims court, then I'd suggest hiring a paralegal to help you out at first. Next claim, you can probably do more yourself.


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## ESSaustin (Mar 27, 2010)

I recently had luck with contacting their banker, and explaing the unscrupulous business practices their clients were using. The banker will be concerned for the bank's investment (avoiding a lien) and will most likely contact their client (the developer). The developer probably wants to stay in the good graces with his bank (especially in these times when banks are tight), and comply. It's a big game, and it sucks!


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## shovel13 (Feb 13, 2010)

noahweb said:


> :furious: you know people come up missing all the time right? :furious:




and it's surprisingly affordable, or so i hear.:whistling


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## TxElectrician (May 21, 2008)

shovel13 said:


> and it's surprisingly affordable, or so i hear.:whistling


 

And this from a contractor that uses "shovel" as a screen name :whistling


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## shovel13 (Feb 13, 2010)

TxElectrician said:


> And this from a contractor that uses "shovel" as a screen name :whistling




damn i said too much:shutup:


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## Electric_Light (Nov 25, 2007)

Rio said:


> Put a note on a brick and throw it through his window... Just kidding!
> 
> I had a person one time who borrowed some money and kept coming up with excuses but soon it became obvious there was no intent to pay. I told him that I was going to make up a big sign and send my office helper over to where he lived to walk up and down in front of the house with something along the lines of "This guy is a big rip off". He got really flustered and said I wouldn't and I promised him she'd be over there the next day. He paid right up but did live in a tight knit Portugese community where everyone knows everyone else so there was some additional embarrassment potential.


This is certainly unethical and unprofessional. It would also constitute a blackmail. 

You all are adults. What the client did may not be right, but stop acting like children.


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## Rio (Oct 13, 2009)

If you're referring to the brick comment, that was a joke; if you're referring to threatening the jerk who ripped me off with having one of my office helpers picketing in front of his house he wasn't a client but even if he was a client if someone is out to rip me off then all options are on the table. 

In that particular case I knew that the social pressures of living in a tight knit community would come to bear on him if I did have the gal march up and down in front of his house. When I told him what I was planning on doing he blanched and started stuttering and stammering some B.S. about how I couldn't be serious. I told him I was absolutely serious. He realized I wasn't joking and came right over and paid me back the money he'd been sticking me for. The threat of action did not constitute blackmail, it constituted a firm promise. If it ever happened again, given the same set of circumstances I would do it in a heartbeat. Frankly the guy was lucky he didn't get punched in the nose on top of it for violating the trust I'd built up with him just because he'd gotten itchy...............


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## Framer53 (Feb 23, 2008)

Electric_Light said:


> This is certainly unethical and unprofessional. It would also constitute a blackmail.
> 
> You all are adults. What the client did may not be right, but stop acting like children.


I disagree. It may be slightly unprofessional, it is not unethical by any means, as long as it is the truth.:thumbsup:


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## Curb Guy (Oct 23, 2008)

In California we have a bond for $12,500 "attached" to our license. Had a general builder that would not pay, return calls, etc for 30+ days. Tracked down his bonding company and filed for my money. He sent me a check in a week.


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## koren (Apr 26, 2010)

I had a customer in New Jersey that owed$1,800, I let him know he would end up on krisslist if I was not paid.
Bill was paid in 3 days


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## cwatbay (Mar 16, 2010)

Boy, I didn't know this post would keep gong like this. This is what I would do and I have done it myself - all of this is assuming that you are a licensed contractor - which you need to be in CA to do this: 

1) Although it is way past due -- send them a 20 day notice of intent to file a lien

2) File the lien

3) At the same time, go down and file a small claims action. In CA the limit is $7500.00

4) If they tell you to go suck eggs, then push forward on the lien, which may not be possible based on the 90 days past due, but check with the County Clerk in location of where the work was done

5) Push forward with the small claims action, it takes time, but have your documents all prepared and ready, cus judges don't like unprepared folks.


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## koren (Apr 26, 2010)

*reply*

Krisslist is a website like Angies list, but in reverse.
Its a great way to collaborate with other contractors in your area.


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## Silver02TDI (Mar 29, 2010)

Can someone tell me, before I sign up, if Kris's List has Canadian content on it as well? Or is it U.S. only?


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## koren (Apr 26, 2010)

As far as I know there is not any info in Canada.
You and your network of contractors could start and there would be.
Like I said before, just the idea of it got me paid, and it certainly feels better when I post on the site. The only way we know about these deadbeats is when we talk about them, and know to stay away from them. Lets face it, in this economy, it could only take one big one to put you under. It would be nice to know to stay away.


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## bwalley (Jan 7, 2009)

koren said:


> Krisslist is a website like Angies list, but in reverse.
> Its a great way to collaborate with other contractors in your area.


I never heard of it but how do I know anyone is in my area without paying the fee upfront?


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## koren (Apr 26, 2010)

Chances are there are not any posts in your area.
The website is only a year old. It was started in PA.
It will only grow in your area if you start posts and let other contractors in your area know that there is a forum to do so. And like I said in the previous post, just the idea of being posted will likely get you paid.If that does not work, let the customer know they are posted and will not get removed untill you are paid. you can remove your own postings.


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## DPCII (Mar 14, 2010)

Hammer_Nail said:


> Any suggestions on how to collect (get paid) from a small Developer? He's over 90 days.. and yesterday, he wouldn't return our phone calls


 
Show up at their house and back a full 30 yard roll off up to their lawn.

Knock on the door and tell him you are here for your money.

99% probability you will get paid.


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## BPWY (Sep 21, 2009)

mdurbahn said:


> you can hire a collection agency and they will give you 50% of what they get from him.






That can be a common misconception.

Check your state's laws. My state allows for collection cost to be added on top of the amount due. I've had 100% success with the few cases I've had to go that route.
There is a local company that I use.


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## BuenaHomes (Jun 13, 2007)

bwalley said:


> I never heard of it but how do I know anyone is in my area without paying the fee upfront?


 ("kristlist")scam site...at it best


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## CopperSmith (May 1, 2010)

First off, dont make the rookie mistake of not trying to piss them off. Your better off not working for people that don't pay. 

You need to make direct personal contact with this individual and ask them why you have not been paid yet, and when you will be paid. 

Chances are he/she is having direct cash flow problems. 

1. Lien the Property. 
2. Attempted to Get them to sign a Promissary note- Ideally secured and signed by a individual. (tough to do but some will) 
3. When the give you little checks - Few thousand here, few thousand there, make sure you check with the banker to make sure there is money availible in the account. This way, if there is no funds avaiable, hold on to the check and try again in a few days. Otherwise, you are just going to get bounced checks and they could simply go bankrupt at anytime. And chances are if your window contractor they have much bigger fish. 
4. Be stern but don't threaten people. It is illigeal and not only that, you don't want to be the guy that says, "you don't know me or my family" Thats just bad business. Just deal with them straight up and tell them you would like to be told honeslty what there cash flow situation is and how they plan on handling your dept. Explain to them your concerns and try to come up with a resolution. 

Good Luck


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## DPCII (Mar 14, 2010)

CopperSmith said:


> First off, dont make the rookie mistake of not trying to piss them off. Your better off not working for people that don't pay.
> 
> You need to make direct personal contact with this individual and ask them why you have not been paid yet, and when you will be paid.
> 
> ...


Even if they do go bankrupt after depositing the check, and it clearing, you could still find yourself in the unenviable position of simply giving the money back to the BK court.


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## Electric_Light (Nov 25, 2007)

koren said:


> Chances are there are not any posts in your area.
> The website is only a year old. It was started in PA.
> It will only grow in your area if you start posts and let other contractors in your area know that there is a forum to do so. And like I said in the previous post, just the idea of being posted will likely get you paid.If that does not work, let the customer know they are posted and will not get removed untill you are paid. you can remove your own postings.


Apr 2010 n00b with four posts and every one of them is about that particular website. Call me a skeptic, but your posts paste like spam. 

A five year subscription option to be paid in advance to some person's information service website that's only been registered since Feb 2009 without even a free trial membership? :laughing::laughing::laughing:
_1 Year = $12, 3 Years = $32 and 5 years = $52_


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## bwalley (Jan 7, 2009)

koren said:


> *Chances are there are not any posts in your area*.
> The website is only a year old. It was started in PA.
> It will only grow in your area if you start posts and let other contractors in your area know that there is a forum to do so. And like I said in the previous post, *just the idea of being posted will likely get you paid*.If that does not work, let the customer know they are posted and will not get removed untill you are paid. you can remove your own postings.


If there aren't any posts in my area, what is the point of it?

sounds like a waste of money and just a way for a website to make money.

Threatening a client with a website that has to be paid to be viewed will not get anyone paid.


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