Legal Question in Business Law in California

Re: unpaid accounts receivables

Essentially this is more a business than a law problem, you need to tighten up your credit standards so you don't become your customers' financing entity. First of all, your invoices should have been drafted or gone over by a lawyer so you can collect interest, attorney fees and collection costs if you incur them. Then, you will have to sue some of your customers. For the true deadbeats this is an easy decision. You will have to sue some people even if you thereby risk their future business, you need to show them you're not a pushover. If the invoices are for merchandise that can be protected by a security interest, perfect the security interest by filing a UCC-1. Be sure and sue before they go bankrupt! Hire a lawyer to write collection letters, sometimes a letter on lawyer letterhead will get their attention and this is inexpensive. Then sue them!!

Re: unpaid accounts receivables

Good luck, auto dealers are among the hardest hit during the current recession. My guess is that they do not have the money.

File a small claim lawsuits against the dealers. They are cheap and quick. You do not need a lawyer. When you get a judgment record a J-1 with the secretary of state to get a lien against their assets. This can help if they go bankrupt.

Re: unpaid accounts receivables

Small claims court.

Re: unpaid accounts receivables

Just file small claims actions. You will lose them as customers, but it would seem they are not worthy anyway.