It's doubtful he will sue, Jim….

We recently published a post from contractor Jim Brown who is trying to collect $7,100 from a deadbeat customer. Jim placed a lien on the house but the client, in return, threatened to sue.  Jim asked for advice/help from readers. The best (of many good tips, thanks everyone) came from Dave Templeton… 

“It’s doubtful he will sue: it’s very expensive for him, too, and then the court will look at the whole case and he would probably have to pay anyway. Have you perfected the lien in the courts? If not let it remain. If and when he sells the house or tries to take a mortgage on it, he will have to settle the account before proceeding.

Register the account with the credit bureau: that usually gets a response. That typically costs 35% of the invoice. You can get 21 day credit bureau letters. The bureau will send a letter demanding payment but you have an option of ceasing action at 21 days, so no additional cost to you, but the customer will think that you have attacked his credit rating.

The other option is to leave the credit bureau action intact, which affects his credit rating long term, but will cost you the 35% charge if and when he does pay. By the way, you can place and retract a lien on your own as an officer of the company. Fees are about $80 to $100 for the Land Registry Office. You just need a lawyer or paralegal sign off on the paperwork. Much cheaper.”