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Have you considered using a debt collection agency? On the first consulting gig I ever did, I was owed $10K by a client who refused to pay. After months of pati
by tjmc 15y ago
Have you considered using a debt collection agency? On the first consulting gig I ever did, I was owed $10K by a client who refused to pay. After months of patience, including offers to let them pay off the debt over time I went to a collection agency and got the lot back in a court settlement less $1k in fees for the agency (which at least was tax deductable).
I should mention that this was in Australia and I had a pretty solid contract. So this may not apply to you, but the debt collector took the hassle out of chasing it up and I didn't have to get involved in the court proceedings. It might be worth a look.
For anyone who's contracting I'd recommend a few things:
1. Always have a contract and make sure you get advice before you sign it.
2. Don't be afraid to change or negotiate terms if you need to. Look out for excessive IP restrictions and restraint of trade clauses.
3. If you're doing per-diem work, get signed weekly timesheets. They're a legal record of work done.
4. If you're building a product for a fixed price, contractually define milestone payments and ideally get a partial payment up front.
5. If a client can't or won't pay at any point, stop work until they do!
- badclient 15y agoThis guy is far beyond the reach of debt collection agency. He has multiple active civil cases re: money owed. His own former lawyers have been owed money to and have obtained default judgement against him and yet have not been able to collect money as of my last conversation.
- jcrites 15y agoWas this all stuff that had happened before he contracted with you? Perhaps the real lesson learned is: check out your clients before working with them.