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Business Debt/Client closed owing us a lot of money
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Question
In 2006, we provided equipment rental and labor services to a client that we had worked for a few times in the past. My wife and I provide audiovisual production services, and when I arrived on show site for this specific client, we found out that one of the 2 owners had sold their share to a group of other investors. We went ahead with the show, at the same terms we had negotiated with the previous owners. However, the new owners neglected to pay us the entire amount that was owed to us for our services once the event was over. They closed the business in late 2006, and we are still owed over $20k. We are a very small company, and it has made running our business very difficult, not to mention the financial difficulties for us personally. Our credit has been affected, since we have not been able to pay all of our bills, and yet the former owners of this company have gone on to start new businesses and even work for many of the same customers as before. The assets ended up going to the previous owner that sold, since he had put a lien on all of their assets. We have no money to hire a lawyer to help us get this money paid. Is there anything we can do to get this money paid?
Kirk,
If you had a contract with the original owners and they signed it you should immediately take them to court for your money. Since the new shareholders was something you learned of when you showed up at the job and they did not sign any agreement or contract with you, they cannot be help liable.
Good luck!
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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