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How to sue a client for not paying? Suing for Non-Payment of Services

If you’ve sent an invoice to a client and they have failed to pay, it is important that the matter be resolved as quickly as possible. Small business owners can pursue legal action for non-payment of services if there was repeated follow-up by phone or email with no resolution in sight; at this point, we will need help from our lawyer who specializes in these types of cases!

Suing your clients for unpaid invoices is never an easy decision. It can be costly and time-consuming, so it’s important that you assess the amount owed before deciding whether or not going through legal action will be worth all of this hassle.

How to Sue for Non-Payment of Services

If you’re owed money by a client, the first step is to assess how much that actually amounts. This will help determine which legal action needs to be taken in order for small business owners like yourself get paid what they deserve from those who owe them!

the steps to suing for non-payment of services:

Send a Final Demand for Payment

Making a final demand for payment is one way to ensure that you get what’s owed. The client might be more inclined to pay after seeing their legal options, and it can also serve as an effective warning shot should they continue avoiding payments on time contracts or invoices alike in the future. The final demand for payment is a crucial piece of evidence in proving you actually tried to settle your dispute before going through with court proceedings.

A final demand for payment should be a formal letter that includes the following:

  • The client has been notified that they are in arrears on their invoice.
  • The total amount you owe for this invoice and any late fees that have accumulated.
  • A request for payment by a certain date for the full payment owing on the invoice
  • You may pursue legal action if the invoice isn’t paid by the deadline.

Assess How Much You’re Owed

When a client does not pay their bills, it’s best to evaluate whether litigation is worthwhile. The costs associated with lawsuits can be high and time-consuming as well which may make them unproductive in some cases when you need the money more than anything else.

Making a business decision can be difficult, but it’s important. The first thing you need to do is assess what you owe: the total amount of all invoices and any related expenses for which we haven’t been reimbursed yet. Once that’s clear in mind then consider whether or not this company has enough money available on their end so they might actually pay us back.

Some factors you should consider:

  • What fixed assets do they have, such as property and equipment? The total value of these items is difficult to determine but it’s estimated that companies own around a trillion worth of machinery alone!
  • Amount of cash on hand
  • Corporate stocks are one of the most common investments for people looking to diversify their portfolios.
  • You may have a lot of debt, but that doesn’t mean you can never pay off what’s owed.

The client is in danger of filing for bankruptcy or doesn’t seem to have enough money and assets, so you might consider selling the debt instead of going through with a lawsuit.

Get Legal Advice

Hiring a lawyer to represent you in court can be an expensive decision, but it is absolutely necessary if the client has skipped out on their bill. If for some reason hiring one isn’t feasible or desirable then speak with any other attorneys that might have experience dealing exclusively with this sort of case before making plans based solely on internet advice alone.

Lawyers are often the first step in starting a legal case. They can help determine whether it is worth pursuing and advise on what court would be best for your needs based on where you live or other specific details about yourself, such as if there were intentional wrongdoing that led up until this point- all while giving advice tailored specifically towards their client’s situation!

Consider Small Claims Court

The small claims court is a great place for people who are looking to collect on debts and it’s straightforward enough that you don’t need an attorney.

Filing a suit in small claims court is the most affordable and least time-consuming option for collecting on debts. The process of filing suits there is straightforward enough that many people don’t hire lawyers, which means they can get their disputes resolved quickly without having to spend too much money or take up all day with paperwork.

The maximum amount you can claim in small claims court is typically between $2,500 and 25k. You’ll need to check with your state about the exact limits but it’s important that these figures are precise because an incorrectly calculated threshold could mean lost opportunities for recovering assets from a business dispute or personal injury case. If your client doesn’t show up in small claims court, you’ll win by default. You can get a ruling the same day, so if they show up it will be quick and straightforward.

Consider A Civil Lawsuit

Some cases are so complex that they can’t be handled with a lower-tier court or through small claims. This means you’ll need to consider filing suit in civil proceedings, which may involve more paperwork and time spent on your end but could offer better results if won. A civil case is more formal than a small claims suit and often requires the assistance of an attorney. Depending on how complex your matter may be, you could also need to hire someone like me who has experience with these types of cases. Think about how much time and money you will spend on your civil lawsuit before deciding if it’s worth the hassle.

Who Pays Court Costs in Small Claims Court?

The first step in any legal proceeding is to file a lawsuit with the appropriate court. The plaintiff must pay a filing fee which they will win if they are successful, and this payment helps fund their representation by giving them some money back after all costs associated have been paid out from fines or damages awarded against another party involved (defendant).

We all know how expensive lawyers are. If you win your case and the judge rules that they have to pay for court fees, in addition to what was owed on their past due bill–that could add some serious money.

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Last updated | 19 July 2023

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