small claims court (serious)

abi_yo_shiva · 07-20-2009, 07:40 AM

has anyone been theretrying to win something?? is this helpful at all?? my wife and i run a small freelance graphic design company. we did a job for somebody that they gave us runarond throughout the project thatt took almost 4 months. now that was the time to pay the bills jers are saying they dont have money, they're thinking about filing chapter 11 and they are not gonna use the designs so we can take them back. all this is worth about $5000, i have a signed contract, WO, all email correspondence in which they were constantly making changes and never mentioned that they are having problems with the money.

regular lawyer is too expenssive, collection agency takes forever and they are gonna call them every once in a while. so small claims court is pretty much my only option. do you think i have any chances of wining??

jim95608 · 07-20-2009, 07:46 AM

At 5k u are pretty much maxing small claims depending on ur state. Some states even max out at 3k. Still is it worth your time, yeah it only costs around $150-$200 to file. Even if they file Chapter 11 you might be able to get in as part of the negotiated debt. Also you can possibly receive their personal tax refund depending on how they setup the company (assuming its a small 1-5 person size company).

Besides plenty of options... i.e. Judge Judy/Milan (my personal preference here!!!!!!!)

abi_yo_shiva · 07-20-2009, 08:00 AM

it's in new york state and they accept anything up to 5k and yes, that company is a small ~5ppl environment. i didnt know about that personal tax thing. that might be helpful. we'll see im filing today, it's gonna take a few weeks before the trial. next option - judge judy

FutureHench · 07-20-2009, 08:04 AM

Time to round up your boys and pay these fools a visit..

jim95608 · 07-20-2009, 08:12 AM

before u file find out how they setup the company if u can. than file against each individual u had contact with in the company and the company itself. a judge may throw it out, but unless they set it up under an LLC or a small corp theres a good chance they can be held personally liable (thats how u take their personal federal refund).

LoRdAc][d · 07-20-2009, 11:58 AM

Yes, if you organize your case and evidence in a way that's easy for the judge to understand, you should be good to go. But I thought when filing bankruptcy, all debts are excused...?

lyrics312 · 07-20-2009, 12:01 PM

My business law teacher told me that it's really hard to collect on a small claims verdict because nobody is really enforcing it and making the guilty party pay. So you'll prob win, but collecting the $ will still be difficult

abi_yo_shiva · 07-20-2009, 12:05 PM

Quote:

Originally Posted by LoRdAc][d

But I thought when filing bankruptcy, all debts are excused...?

that's what im fearing the most. those bastards will fill bankruptcy, clear their debts, meaning i wont get ****, and weeks later reopen under a different name.

wrathofhan · 07-20-2009, 12:06 PM

Quote:

Originally Posted by LoRdAc][d

Yes, if you organize your case and evidence in a way that's easy for the judge to understand, you should be good to go. But I thought when filing bankruptcy, all debts are excused...?

After about seven years.

I doubt it will do you much good. Even if you win the small claims, you will have to chase after them again for the money.

LoRdAc][d · 07-20-2009, 12:19 PM

Quote:

Originally Posted by abi_yo_shiva

that's what im fearing the most. those bastards will fill bankruptcy, clear their debts, meaning i wont get ****, and weeks later reopen under a different name.

It must be tough. Serving them could be enough to scare them into paying. We always ask for an upfront 1/3 or 1/2 of the payment before we start work with the rest pending completion.

ChristianBBer · 07-20-2009, 12:23 PM

Bring them to court. If all paper work is in order you'll win.

I do not know about bankruptcy laws, if they file before the court date you may be in trouble.

If they don't file, and you goto court, thus getting the judgment in your favor they'll be forced to either sell of their assets to pay you or have their wages garnished.

abi_yo_shiva · 07-20-2009, 12:25 PM

Quote:

Originally Posted by LoRdAc][d

It must be tough. Serving them could be enough to scare them into paying. We always ask for an upfront 1/3 or 1/2 of the payment before we start work with the rest pending completion.

we'll see. the good thing is i have all paper work with their signatures. yeah, they gave me $500 down but that's not gonna cover my 4 months of work

LoRdAc][d · 07-20-2009, 12:50 PM

Quote:

Originally Posted by abi_yo_shiva

we'll see. the good thing is i have all paper work with their signatures. yeah, they gave me $500 down but that's not gonna cover my 4 months of work

My uncle won a court case against someone that wouldn't pay the final judgement. He took the court order to the police, and they put a lien or something on the defendants bank accounts, and took the money right out of there. I would check with the county clerk where their business is located/registers to see if it's an LLC or Corp. If it's niether, you can take the court order to the police and get the money from their bank accounts. But I'd confirm this with the police, courts etc just to be sure.