COLLECTING DELINQUENT ACCOUNTS RECEIVABLE

It is an all too familiar occurrence.  You’ve completed work for a client and they refuse to pay.  Now what?  Luckily you don’t have to figure out the next steps on your own.  Smith Jadin Johnson, PLLC can help you collect overdue receivables.  Whether it is a homeowner or a general contractor, we are here to help.

Here are the top five reasons why you should hire Smith Jadin Johnson, PLLC to help you collect your construction related debt.

1 – Time is of the Essence.  Some avenues of collection are time sensitive.  For example, contracts have a six (6) year statute of limitations, but a mechanic’s lien must be filed within 120 days of the last item of work.  A mechanic’s lien is a valuable tool to reserve your right to compensation for unpaid work, but it has rigid time and filing requirements. Smith Jadin Johnson, PLLC provides advice and assistance, including drafting and serving the appropriate notices, filing and serving the appropriate lien documents, as well as handling the mechanic’s lien foreclosure process.

2 – Finding the Best Solution for Collection.  Collection is not one-size fits all.  The various avenues of collection are not all created equal, they cost varying amounts, and take differing amounts of time.  Smith Jadin Johnson, PLLC can walk you through these various options, help assess your needs, and determine the best way to collect a particular debt.

3 – Debtors Take Attorney Letters Seriously.  Right or wrong, a letter from an attorney’s office often produces more of a response from a debtor than a letter or call from the contractor.  A demand from an attorney is taken seriously because failure to respond to the demand often leads to the filing of a lawsuit.  Smith Jadin Johnson, PLLC can help demand payment on your behalf and follow through with a lawsuit, if necessary.

4 – Collecting on a Judgment is not Straightforward.  Once you obtain a judgment against a debtor, you still have to collect on that debt.  A judgment is just a piece of paper unless you know how to collect that judgment.  Smith Jadin Johnson, PLLC can help you not only obtain a judgment against a client who refuses to pay, but also assist you garnishing wages, seizing assets, and actually collecting on your judgment.

5 – Collection should be a Tax Write-Off for Your Business.  Typically, the costs of collecting delinquent accounts tax deductible as a business expense (you should consult with your CPA to verify this applies to your business).

Call Smith Jadin Johnson, PLLC today to discuss how we can help you collect your unpaid receivables.