I don't know how to get deadbeats to pay. In case of a contract that I delivered on, and two emails of reminder, I send a notice of intent to file lien. That usually works. When i get a real loser, I eat the loss. I've tried every legal collection method and none have been worth the time or retaliation. The worst are those who have a clear idea of what THEY thought you should have done. Those are hopeless.?ÿ
Persistence and experience helps.?ÿ The only problem there is getting the experience, both bad and good.?ÿ Learn from it.?ÿ Don't get depressed.?ÿ Keep digging.?ÿ Most people can be cornered and end up paying.?ÿ Not all.?ÿ Forget about trying to hit 100 percent.?ÿ It will not happen.?ÿ Avoid certain types of businesses once you learn that they are slow pays or no pays.?ÿ Save yourself a lot of heartache.?ÿ Not ever potential client deserves to take your time and profit from you.
Comments from many years in business and an average of one deadbeat client per year:
She may be 84 years old and supposedly half blind but she owns more land and oil wells than you will ever have.
Watch out for divorces.?ÿ Had a case where I had to split the suit in two and go after each one separately on different court dates because SHE knocked the bejeebers out of HIM and HE had a restraining order on HER that prevented them from being in the courthouse at the same time.
Liars lie with every breath they take.?ÿ They have no concept of truth and have never spoken it out loud.
Threats are another form of lie.
Watch out for "surprise" witnesses who will swear you said or did all sorts of things that you absolutely did not do.?ÿ Case in point.?ÿ I told the judge that my parents were clearly at fault because they did not provide me with a brother who would come to court and tell nothing but lies.?ÿ He was not amused as he awarded me a judgement for what the lying brother claimed I had told his brother (the client) was a fixed price (speaker phone claim), which was about $400 lower than the truth.
Hanging around courtrooms can be VERY educational.?ÿ Dull, but educational.
Do not assume you will never hear from the bad client again.?ÿ I have done four surveys for the very first fellow I ever took to small claims court.?ÿ You can bet the last three were very high estimates with full payment before I did anything.
Have gained jobs from other people present in the courtroom probably ten or more times.?ÿ Some became repeat clients.
Had one fellow show up for the hearing that I actually forgot to attend.?ÿ The judge asked him if he owed me the money claimed.?ÿ He said yes, then pulled out a big wad of bills and asked the judge, "Who do I give this to?"
Many small town papers put out court case information once every week or two.?ÿ People who have nothing better to do read those listings.?ÿ Deadbeats who REALLY don't want their names in the paper can suddenly find the ability to pay what you are owed.?ÿ These listings also come in handy at times when a certain name appears frequently enough to put the general public on notice as to who to avoid.?ÿ (Notice that I read them despite what I said three sentences earlier.)
Only twice have I had to get an attorney involved and both times were quite profitable for me plus the deadbeat client also had to pay my legal fees.
Remember the jerks and spread the word.?ÿ One idiot tried to stiff me for a relatively minor amount despite being President of the business where he was employed.?ÿ A year later he hit up a small city to get them to spent a couple million dollars to entice him to start a new business?ÿ there.?ÿ I knew the Mayor and most of the City Council plus the Economic Development Director.?ÿ I had discovered he had been booted out by his Board of Directors and was desperate to land a paying job.?ÿ They didn't even invite him to give them a presentation.
The worst are those who have a clear idea of what THEY thought you should have done. Those are hopeless.
Yes
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Hanging around courtrooms can be VERY educational.?ÿ Dull, but educational.
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During the great recession (prior to covid recession) due to my work free status, I followed daily a 1st Amendment case that was getting national attention, and learned tons.?ÿ The lawyers started talking with me and asking me if I was a reporter, or an attorney because I was there every single day, taking copius notes.
I laughed and said I wasn't, and explained that because I was out of work, why not watch a district level court case on a first amendment arguement. 6 weeks long. The majority of them were envious because I could be there to watch the litigators going at it, working their craft. One form Georgetown, the other from Bolt Hall( Berkley) so near diametric opposition in philosophy, and flamboyance, etc..
I took a practice full size LSAT the following week and scored a 145.?ÿ Im not competetive enough, and in general dont like most lawyers. so bullet dodged. And I learned how to really get under the skin of most but not all attorneys. So There's that.
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50% up front with the deliverables as a hostage.
We require a 50% retainer upfront for most non-commercial transactions. Residential clientele. This weeds out non-payers for the most part and increases cash flow. For out-of-country ALTA situations, we now require payment in full before we start. We have been burned by a Canadian company and it just isn't worth the hassle trying to get money from a foreign entity.
We still get ghosted a couple of times a year, but with increased cash flow from the retainer, we are least able to cover the labor cost plus materials. You do lose out on your full multiplier and profit.
And a sizeable business loss for the taxes, which is allowed. But im not an accountant, I just play one when I'm filing my taxes..... ?????ÿ
My family was in the foundry industry.?ÿ If someone was trying to stiff you, it was almost standard practice to get a molder to come along on the collection ride.?ÿ If you have never worked around a smaller foundry and seen an old school foundryman, picture a guy that spend his day basically doing curls with 36"x24"x8" boxes of oil soaked sand gently enough not to disturb the void left by the pattern, then hauling around pot of molten brass or aluminium in place that looks like hell.?ÿ Tiny with some serious muscles and usually not so bright.?ÿ
I put even money that the guy lower right with the shorter hair and no beard is the NARC.?ÿ?ÿ 😉
If this is your first time dealing with a non-paying client, take care to make sure you are operating within the letter of the law in your state.?ÿ Improper procedure can make your lien worthless.
For example, current language in Kentucky statutes indicate a professional land surveyor contracting with the owner of the property does not have to provide notice for intent to lien.?ÿ In other cases, notice would be required.?ÿ So be careful how you proceed to make sure you are following your state laws carefully.
Another item to check on is what your state may allow you to collect on.?ÿ For example, interest rates, clerical charges for additional billing notices, your time if you perform the filing of the lien all may or may not be allowed and might be spelled out in your state statutes.
How the lien form is filled out is also probably spelled out somewhere in the law (i.e. required information).
I've only had to deal with deadbeats a couple of time.?ÿ In general the process seems to be:?ÿ notice of intent, file lien, seek court judgement to perfect lien, if still not paid - seek court action (foreclosure, garnishment, etc.) to enforce lien.?ÿ Each of these steps may have particular timelines in your state, so make sure you are hitting those marks if you move forward.
The couple of times I've had to do anything like this, people paid after the lien was filed and either just before seeking a judgement or when they got ready to sell before the time limit cropped up to seek a judgement.
Actually...
Seated at top left of frame and nicknamed "Wolfman".?ÿ Neither Holden or I could remember his real name.?ÿ My guess was Larry.
Wasn't really a narc, just a coerced confidential informant.?ÿ Story goes he was up to his neck with federal weapons charges and quietly decided to 'sing'.?ÿ After that he disappeared with a new name and SSN.
Just a story though.?ÿ He might very well be at the bottom of a well there at the "farm". 😉
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My favorite response in small claims court by the lady I was suing was, "Your honor, he even threatened to take me to court!"
Here's a good one. I've lived a dual life as a semi pro musician for as long as I've surveyed. Night career/day career. Also lived in same small rural county and know everyone.?ÿ My to my delight I get a great topo right next to a 3 day "festival type" gig where I can be at both places when needed in an efficient manner. Had solid contract for survey. As is normal the survey was a real head beater. Boundary puzzle solved .?ÿ Topo in thick trees accomplished. Send bill. Nothing. Again and again. Calls. Finally the client answers and explains that his partner decided NOT to develop and they didn't need survey. No budge. Tough. I file a small claims. This really offended client but we settled out of court for 50% (have an insult better than whole insult). Client a few months later becomes owner of 3 venues where I have played 100s of gigs over 20 years. I get blacklisted. Mysterious cancelations aimed at me affect several of my bands and Innocent band mates. I am now causing strained relations. I literally have to stop my playing in this town and there are still a few bandmates that don't understand why. Ugly smeared all over. Even the few wins I've had in collections were not really worth the time and never worth the small town blakballing! And I'm only talking about good work and solid contracts!?ÿ
Here's a good one. I've lived a dual life as a semi pro musician for as long as I've surveyed. Night career/day career. Also lived in same small rural county and know everyone.?ÿ to my delight I get a great topo right next to a 3 day "festival type" gig where I can be at both places when needed in an efficient manner and the client was also involved with the next door gigs.. Had solid contract for survey. As is normal the survey was a real head beater. Boundary puzzle solved .?ÿ Topo in thick trees accomplished. Send bill. Nothing. Again and again. Calls. Finally the client answers and explains that his partner decided NOT to develop and they didn't need survey. No budge. Tough. I file a small claims. This really offended client but we settled out of court for 50% (have an insult better than whole insult). Client a few months later becomes owner of 3 venues where I have played 100s of gigs over 20 years. I get blacklisted. Mysterious cancelations aimed at me affect several of my bands and Innocent band mates. I am now causing strained relations. I literally have to stop my playing in this town and there are still a few bandmates that don't understand why. Ugly smeared all over. Even the few wins I've had in collections were not really worth the time and never worth the small town blakballing! And I'm only talking about good work and solid contracts!?ÿ
And a dual poster, too!
