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How can you get payment from a business that owes you?

On Behalf of | Oct 4, 2019 | Uncategorized |

You work hard, and while you may find great satisfaction in your work, you also want to get the pay you deserve for your efforts. When you work with other businesses, such as supplying materials for construction or subcontracting on a project, you may find it part of the job to wait for your pay until those above you get their money. However, what happens when the money never gets down to your end of the supply chain?

As distasteful as it may seem to take collection actions against another business, you may have no choice. You have your own chain to adhere to, and every job you do brings in money you need for your business as well as your family. When you are dealing with a business owner who will not pay what he or she owes you, it is not unreasonable to seek legal assistance about your options.

Getting yourself organized

Ideally, you have a policy in place for unpaid bills, and you have clearly spelled out this policy in your contract. This does not always guarantee your business customers will comply with your payment policies, but it may give you an advantage if you decide to take legal action, such as placing a lien on any property of the business.

Before you take any steps, you should begin by gathering the paperwork that proves the other business owes you money. This can be an itemized bill or receipts for materials you purchased for the project. By enlisting the services of a North Carolina attorney, you can learn what other evidence may be necessary for filing a claim against the business.

Filing a lawsuit

If the other business still refuses to pay, then the next step is to file a case against them in court. You will need to have evidence showing that the other party breached their agreement with you by failing to pay. You will also need to show how much you are owed. The other party will have to respond with evidence proving he or she does not owe you the money you feel is due. If you can prove your case, then the court would grant a judgment in your favor against the business. Your next step would be to begin the collection against the business by seeking out and possibly seizing any of their assets. This may include:

  • Real estate
  • Bank accounts
  • Company vehicles
  • Inventory

Those who have an interest in these assets, such as mortgage companies or the motor vehicle department, may not allow the business owner to sell or transfer the property before you obtain what the business owes you.

Collecting from a business that will not pay is a complex process. This is why many who must take collection actions against businesses reach out for legal assistance from a skilled attorney who has experience dealing with the steps for getting a business to pay.

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