Legal Question in Business Law in New York

Collections of debts

I have a client tht is past due on many of their invoices for consulting servies I provided. I believe they are near being closed or taken over by a bank.

What can I do to collect on my invoices and how can I get paid if they close their doors and declare bankruptcy?

Does a ''Mechanics Lean'' help any?

I have been in constant communication with the President and have kept my emails to him to form a paper trail. they have been sent the invoices and updates on their account.

I have tried to work out payment plans with them, charging no interest, and they have meagerly responded.

The overdue amount is approximately $20,000 but I don't know if this helps or not.

I would like to work this out by staying out of court because I believe the owners are honerable but they may be experiencing bank pressures in obtaining future captial. I would like to protect my interests in some manner.

Thanks for the help.


Asked on 1/25/05, 2:05 pm

2 Answers from Attorneys
John Friedman Law Office of John K. Friedman

Re: Collections of debts

You may be in a very bad position. If they are on the verge of being forced to seek protection (filing bankruptcy of one form or another) payment to you at will be recoverable by it/its estate if the payment is made within 6 months of (prior to) the filing. A complete analysis of your contract with them is your first line of defense. Also, if you've any basis for filing a lien/UCC statement you should do so.

Read more
Answered on 1/25/05, 2:19 pm
Anthony Lee Gallo & Iacovangelo, LLP

Re: Collections of debts

The first step to making sure you can collect for your work is to have sent proper demands for payment. After that it may be worth filing an action for a judgment and seeking a lien on any assets they may have. I would me more than happy to speak with you. My number in Rochester is 585-454-7145, x216.

Anthony Lee - Gallo & Iacovangelo, LLP

Read more
Answered on 1/25/05, 2:20 pm


Related Questions & Answers

More Business Law questions and answers in New York