Robert has raised some excellent points. Possibly I could also offer a suggestion that has worked for me. I like to think of it as playing Texas Hold 'Em. You all know my position in this matter. So, I will not bore you with it again. I have zero tolerance for slow pay/no pay clients. They want their work done on time, and we as abstractors bend over backwards to accomodate that need. Therefore, the flip side of the coin applies, and payment is due in a timely fashion. I send them a bill, and two subsequent demands for payment. If they do not pay, I have no compunction about resorting to the legal process. This is true even if the cost of the suit is greater than the amount at issue because it is a matter of principal, and I will recover the cost in one of the other areas of my practice.
That having been said, I have found that if after you have taken reasonable steps to secure payment unsuccessfully, and you fax them a copy of an unsigned small claims/Superior Court complaint with an indication that it will be served/filed within 24 hrs...48 hrs...72 hrs...whatever convenient time unless arrangements are made to pay your bill, you will generally be successful in having your bill paid.. The exceptions are clients that are no longer in business or bankrupt. This method lets them know that things have reached a critical state, and that this is the last chance to make payment before going to the expense of litigation. It will be an expense for them also if litigation is initiated.
To date I have never been stiffed on a bill with the exception of the Bridgespan bankruptcy. There is not too much you can do if the client is bankrupt but file a proof of claim. In which case you generally receive nothing as an unsecured creditor.
The cost of faxing the above mentioned complaint costs nothing more than the cost of a fax transmission. Most of the time your delinquent clients will be on the phone to arrange payment within the time you set prior to serving/filing the suit. However, in the event that they do not, move forward with the suit.
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